SAFE HARBOR The forward -looking statements included in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . All statement s other than statements of historical facts, which address activities, events, or developments that we expect or anticipate will or may occur in the future, including statements regarding market share gains, positive customer trends, new stores and distribution centers, property development plans, financial guidance ...

Tractor Supply Company (NASDAQ:TSCO) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Mary Winn Pilkington - Senior Vice President-Investor Relations & Public Relations Hal Lawton - Chief Executive Officer Kurt Barton - Chief Financial Officer Robert Mills - Executive Vice President, Chief Technology, Digital & Corporate Strategy Officer Seth Estep - Chief Merchandising Officer Conference Call Participants Peter Benedict - Baird Josh Young - Truist Michael Lasser - UBS Chuck ...

Brentwood, Tenn., April 24, 2025 - Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the "Company"), today reported financial results for its first quarter ended March 29, 2025. "As the year unfolds amid increasing volatility, our conviction in Tractor Supply's resilient and durable business model remains strong. We have a long track record of navigating uncertain environments, and we believe we are well-positioned to do so once again. Tractor Supply is unique ...

Core Insights - Tractor Supply Company (TSCO) is leveraging its Life Out Here Strategy, 'ONETractor' Strategy, and Neighbor's Club membership program to drive growth through new launches and innovations [1][5] Product Launch and Features - The company has introduced Tractor Supply Rx, a low-cost pet and animal pharmacy, which allows customers to enroll in automatic delivery via the Autoship program and access expert pharmacy advice [2][3] - Customers can easily request medications and share their pet and veterinarian's details, with same-day shipping available for prescriptions [3][4] - The new launch includes additional services such as pet wash stations, grooming at Petsense, and veterinary care through a partnership with PetVet [4] Membership and Customer Engagement - The company aims to reach approximately 38 million Neighbor's Club members with its pharmacy solutions, integrating digital pharmacy services into its stores [5] - Neighbor's Club members can benefit from rewards and exclusive offers, enhancing customer loyalty and savings [3][4] Strategic Initiatives - TSCO is focused on its 'ONETractor' strategy, which connects in-store and online shopping experiences, supported by investments in curbside pickup, same-day and next-day delivery, and a revamped website and mobile app [6] - The company is expanding its store base and incorporating technology to drive traffic and revenue, with Project Fusion aimed at improving customer experience in existing stores [7] Financial Performance and Market Position - Despite the growth initiatives, TSCO's shares have declined by 11.6% over the past three months, compared to a 20.6% decline in the industry [8] - The company is facing challenges with rising selling, general and administrative (SG&A) costs, which are attributed to growth investments and the onboarding of a new distribution center [10]

Tractor Supply Company (TSCO) is likely to register an increase in the top line when it reports first-quarter 2025 results on April 24, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $3.6 billion, indicating 4.8% growth from the year-ago reported figure.The bottom line of the leading rural lifestyle retailer in the United States is expected to remain flat year over year. The Zacks Consensus Estimate for first-quarter earnings per share (EPS) has been unchanged at 37 cents in ...

Tractor Supply is a reliable dividend payer with a promising future, and recent weakness in the stock could be a gift to long-term investors.As macroeconomic uncertainty persists, many investors may be looking for resilient businesses likely to hold up well even if a recession rears its ugly head. Dividend stocks with a long track record of dividend growth are usually good options when investors are seeking out companies like this. But investors looking for more resilience in their portfolio shouldn't pick ...

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Tractor Supply [1] Company Insights - The Motley Fool has a disclosure policy regarding its investment positions [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services [1]

Core Viewpoint - Tractor Supply Company (TSCO) has experienced a 17.8% decline in share price over the past six months, underperforming both the industry and broader market indices, reflecting challenging macroeconomic conditions and company-specific challenges [1]. Group 1: Stock Performance - TSCO closed at $51.32, remaining below its 200-day and 50-day simple moving averages (SMAs) of $54.52 and $54.17, respectively, indicating a potential sustained downward trend [4]. - Investors are divided on the future trajectory of TSCO, with some anticipating further downside while others see potential for a rebound [7]. Group 2: Growth Challenges - The company reported a modest 0.6% increase in comparable store sales in Q4 2024, driven by a 2.3% rise in transaction count, but offset by a 1.7% decline in average ticket size, indicating reduced consumer spending per visit [8]. - TSCO is facing mounting cost pressures, with SG&A expenses, including depreciation and amortization, increasing by 5.5% year over year, leading to a 4.8% decline in operating income and a 69-basis point drop in operating margin to 8.44% [9][10]. - SG&A costs are expected to rise another 6.7% in 2025, with SG&A as a percentage of sales forecasted to increase by 30 basis points, compounded by a tough retail environment and anticipated deflationary pressures [11]. Group 3: Growth Initiatives - TSCO is leveraging strong customer engagement and market share gains through its "Life Out Here" lifestyle assortment and convenience store format, which enhances customer loyalty [12]. - The Neighbor's Club loyalty program is a key growth driver, achieving record highs in active accounts and customer retention, while cross-shopping between Petsense and Tractor Supply is increasing [13]. Group 4: Valuation Concerns - TSCO's stock is trading at a forward 12-month P/E ratio of 22.95X, significantly higher than the industry average of 14.84X, raising concerns about the sustainability of this premium valuation amid slowing growth and rising costs [14]. - The elevated valuation may limit upside potential in the near term, especially if performance does not improve significantly [15]. Group 5: Market Outlook - The recent stock decline and ongoing challenges from shifting consumer behavior and macroeconomic pressures suggest a cautious approach for investors, as TSCO's near-term outlook remains uncertain [16].

Core Viewpoint - Tractor Supply Company (TSCO) is well-positioned for growth due to its robust business strategies, particularly its omnichannel investments and customer engagement initiatives [1][4]. Group 1: Growth Strategies - TSCO's omnichannel investments include curbside pickup, same-day and next-day delivery, a re-launched website, and a new mobile app, with a focus on leveraging AI technologies for enhanced personalization [2]. - Key initiatives under the Life Out Here strategy include Project Fusion and Garden Center rollouts, which are generating compelling returns through improved space productivity [3]. - The Neighbor's Club membership program has expanded significantly, representing over 85% of sales at Petsense and surpassing 38 million members overall, contributing to strong customer engagement [4]. Group 2: Strategic Partnerships and Acquisitions - TSCO has entered a multiyear strategic licensing partnership with Field & Stream, offering various hunting and outdoor products, and has acquired Allivet to expand its presence in the pet wellness and animal health sector [5]. Group 3: Financial Performance and Valuation - TSCO's stock is currently trading at a price/earnings ratio of 24.93 on a forward 12-month basis, compared to the industry average of 16.56, with a five-year high of 27.91 [6]. - In the most recent quarter, selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased by 60 basis points year over year, impacting profitability [8]. Group 4: Future Outlook - Analysts project a growth of 5.4% in sales and 6.4% in earnings per share (EPS) for 2025, with further growth estimates for 2026 indicating sales of $16.67 billion and EPS of $2.41, reflecting year-over-year increases of 6.3% and 11.2% respectively [10]. - TSCO's stock has rallied 8.8% over the past year, outperforming the industry's 4.9% decline, supported by ongoing cost-saving initiatives [9].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score targets stocks with upward or downward trends in price or earnings, utilizing recent price changes and earnings estimate revisions to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum, aiding in narrowing down investment choices [6] Zacks Rank Integration - The Zacks Rank model uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Stock Highlight: Tractor Supply Company (TSCO) - Tractor Supply Company, based in Brentwood, TN, is the largest retail farm and ranch store chain in the U.S., catering to recreational farmers, ranchers, tradesmen, and small businesses [11] - TSCO currently holds a 3 (Hold) Zacks Rank with a VGM Score of B, and a Momentum Style Score of B, having seen a 1.2% increase in shares over the past four weeks [12] - The Zacks Consensus Estimate for TSCO's earnings has risen to $2.17 per share, with an average earnings surprise of 1.4%, making it a stock of interest for investors [12][13]