Company Performance - Tractor Supply reported quarterly earnings of $3.93 per share, slightly missing the Zacks Consensus Estimate of $3.94 per share, but showing an increase from $3.83 per share a year ago [1] - The company posted revenues of $4.25 billion for the quarter ended June 2024, which was 0.77% below the Zacks Consensus Estimate and an increase from $4.18 billion year-over-year [2] - The earnings surprise for the latest quarter was -0.25%, while the company had previously exceeded consensus EPS estimates three times in the last four quarters [9][10] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $3.51 billion, and for the current fiscal year, it is $10.33 on revenues of $14.98 billion [6] - The estimate revisions trend for Tractor Supply has been unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [5] Industry Context - The Retail - Miscellaneous industry, to which Tractor Supply belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [7] - The performance of Tractor Supply's stock may be influenced by the overall outlook of the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [7] Stock Performance - Tractor Supply shares have increased approximately 22.1% since the beginning of the year, outperforming the S&P 500's gain of 13.8% [11] - The future price movement of the stock will largely depend on management's commentary during the earnings call [11]

Brentwood, Tenn., July 25, 2024 - Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the "Company"), today reported financial results for its second quarter ended June 29, 2024. Lawton continued, "We are confident that we have the right plans in place to win with our customers given the strength of our second half operational initiatives. We remain excited about the significant market share growth opportunities ahead of us as we focus on the continued creation ...

TSCO's ability to offer high-quality products at reasonable prices makes it a preferred choice for cost-conscious rural consumers. The company has been gaining from demand for its core merchandise, including consumable, usable and edible products. The buyout of Orscheln Farm and Home, and store openings have been aiding its performance. The company has been benefiting from its Life Out Here Strategy and the Neighbor's Club membership program, which are likely to have driven its sales in the to-be-reported q ...

Core Insights - Tractor Supply is focusing on integrating physical and digital operations to enhance consumer shopping experiences through omnichannel investments [1][6] - The company achieved record digital sales exceeding $1 billion in 2023 and is leveraging AI technologies for improved customer engagement [2][8] - Tractor Supply is expanding its store base, with plans to increase its domestic store count to 2,500 in the long term [7] Omnichannel Strategy - Investments include curbside pickup, same-day and next-day delivery, a revamped website, and a new mobile app [1] - The launch of the Tractor Supply Visa Credit Card allows customers to earn points on purchases [1] Store Expansion and Productivity - In Q1 2024, Tractor Supply opened 17 new stores and completed the rebranding of 81 acquired Orscheln Farm and Home stores [3] - New store productivity in 2023 was nearly 67% of the mature store average, indicating strong performance [3] Project Initiatives - Project Fusion aims to enhance space productivity and customer experience through store remodels and garden center transformations [4] - The Side Lot model transformation is part of the company's significant investments to boost market share and productivity [4] Financial Performance - Tractor Supply has gained 23.3% year-to-date, outperforming the industry which declined by 3.8% [8] - The Zacks Consensus Estimate for 2024 sales is projected at $15 billion, with earnings per share (EPS) expected to be $10.34, reflecting growth of 3% and 2.5% year-over-year respectively [8]

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating ...

TSCO's dominance in rural areas gives it stability during economic downturns when urban retailers struggle to sustain their market positions. Business Model & Strategies in Focus Tractor Supply's Neighbor's Club loyalty program is another key element of its business model. The program rewards frequent shoppers with discounts and special offers, incentivizing repeat business. Moreover, it provides TSCO with valuable customer data on preferences and buying behaviors. This data allows the company to refine its ...

Let's Delve Deeper Regarding its store-growth initiatives, Tractor Supply is consistently focused on the expansion of its store base and incorporation of technological advancements to induce traffic and boost the overall top line. The company is well positioned to expand its store base, remaining on track to increase its domestic store to 2,500 in the long term. Other Key Picks The Zacks Consensus Estimate for Deckers' current financial-year sales indicates growth of 10.8% from the year-ago reported figure. ...

Tractor Supply Company (TSCO) has reached a blossoming milestone with the grand opening of its 500th Garden Center in Lowell, IN. This marks a surge in gardening popularity and highlights the company's commitment to rural lifestyles. Just four years ago, in July 2020, Tractor Supply planted the first seed of its Garden Center initiative in Rome, GA. Since then, the program has blossomed remarkably. The company's footprint now spans across 41 states, boasting a network of 500 dedicated Garden Centers. This i ...

Company Overview - Tractor Supply Company (TSCO) is a leading rural lifestyle retailer in the US, operating over 2,400 stores across 49 states, targeting customers such as recreational farm owners, ranchers, and pet owners [8] - The company offers more than 300,000 products, including livestock and equine feed, companion animal products, seasonal and recreational items, and hardware tools [11] - TSCO has a strong loyalty program, the Neighbor's Club, with over 34 million members, and sources 90% of its merchandise from 400 core vendors [5][12] Financial Performance - TSCO's net sales increased by 2.9% in Q1 2024, with comparable store sales rising by 1.1% and online sales growing by double-digits [19] - The company reiterated its 2024 guidance, expecting net sales of $14.7B to $15.1B and comparable store sales growth of -1% to +1.5% [21] - TSCO has a strong balance sheet with a 2024E net leverage ratio of less than 1x EBITDA and an investment-grade rating of BBB [27] Strategic Initiatives - TSCO is expanding its distribution network, with its tenth and largest distribution center in Maumelle, Arkansas, expected to improve store service levels and reduce freight costs [21] - The company uses sale-leaseback deals to free up capital for investments, with plans to continue this strategy for the next 7 to 10 years [29] - TSCO's loyalty program and supply chain advancements highlight its commitment to customer satisfaction and future growth [5] Shareholder Value - TSCO has returned 42% since October 2023 and has a ten-year return of 409%, significantly outperforming the S&P 500 [3][6] - The company has consistently increased its dividend, with a 6.8% hike in Q1 2024, marking its 15th consecutive annual increase [23] - TSCO has bought back more than a fifth of its shares over the past decade, contributing to its impressive stock price performance [25] Market Position and Trends - TSCO benefits from the post-pandemic migration to rural areas, driven by work-from-home opportunities and cost-of-living differences [7] - The company's focus on rural markets provides resilience during economic downturns, with a loyal customer base and steady demand [4] - TSCO's real estate strategy and sale-leaseback deals position it well for growth, with Agree Realty (ADC) being a major beneficiary of its leaseback transactions [29][31] Challenges and Risks - Elevated interest rates and sticky inflation are pressuring consumer-focused corporations, with consumer credit increasing by $240B since pre-pandemic levels [13][14] - Consumer sentiment has worsened, with spending diverging between higher-income and lower-income consumers [15][16] - TSCO's current blended P/E ratio of 27.8x is above its long-term normalized P/E ratio, indicating a potentially lofty valuation [37]

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Tractor Supply (TSCO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Tractor Supply is a member of our Retail-Wholesale group, which includes 212 different companies and currently sits at #10 in the Zacks Sector Rank. ...