Tractor Supply Company Reports 2.2% Increase in Net Sales for Fiscal Year 2024

Tractor Supply Company reported a modest increase in financial performance for the fiscal year ending December 28, 2024, with net sales rising 2.2% to $14.88 billion, compared to $14.56 billion in the previous year. The company's gross profit also saw a 3.2% increase, reaching $5.40 billion, while the gross margin improved by 34 basis points to 36.3%. However, operating income decreased slightly to 9.9% of net sales from 10.2% in the prior year, resulting in a net income of $1.10 billion, or $2.04 per diluted share, compared to $1.11 billion, or $2.02 per diluted share, in fiscal 2023.

In terms of operational developments, Tractor Supply opened 80 new Tractor Supply stores and 11 Petsense by Tractor Supply stores during fiscal 2024, contributing to a total of 2,502 retail locations across 49 states. This expansion reflects a continued commitment to geographic growth, with plans to open approximately 90 new Tractor Supply stores and 10 new Petsense stores in fiscal 2025. The company also reported a slight increase in comparable store sales of 0.2%, indicating stable customer engagement despite a challenging retail environment.

Strategically, Tractor Supply completed the acquisition of Allivet, a privately-held online pet pharmacy, for $135 million in cash, which is expected to enhance its offerings for companion animals and livestock customers. The company has also focused on improving its digital capabilities, with an emphasis on e-commerce and customer engagement through its mobile application and websites. The Neighbor’s Club loyalty program continues to drive customer retention and engagement, contributing to overall sales performance.

Financially, Tractor Supply ended the fiscal year with $251.5 million in cash and cash equivalents and long-term debt of $1.83 billion. The company returned $1.03 billion to shareholders through stock repurchases and dividends, reflecting a commitment to shareholder value. The board of directors declared a quarterly cash dividend of $0.23 per share for the upcoming fiscal year, indicating confidence in the company's ongoing profitability and cash flow generation.

Looking ahead, Tractor Supply remains optimistic about its growth trajectory, driven by its strategic initiatives in store expansion, digital transformation, and product offerings. The company aims to leverage its established market position as the largest rural lifestyle retailer in the U.S. to capture additional market share and enhance customer loyalty, while navigating potential challenges in the retail landscape.