Tractor Supply to acquire online pet pharmacy; Q3 sales inch up
Tractor Supply Company is digging deeper into pet services via an acquisition.
On the same day it announced its third-quarter results, the nation’s largest rural lifestyle retailer said it has entered into an agreement to acquire Allivet, a privately held online pet and animal pharmacy. Tractor Supply said the acquisition will complement and strengthen its offerings for companion animals, equestrian and livestock customers and unlock new opportunities for growth.
In addition, the deal will allow Tractor Supply to introduce a convenient, low-cost pet and animal pharmacy solution for members of its Neighbor’s Club loyalty program.
“This acquisition enhances the benefits we can offer to our 37 million Neighbor’s Club members with an easy and cost-effective solution to obtain medications and specialty items for their pets and livestock,” said Tractor Supply president and CEO Hal Lawton. “Allivet is a best-in-class platform with an exceptional management team and a robust financial profile.”
Allivet is fully licensed in all 50 states with three distribution centers that allow it to serve the needs of its customers and reach a large majority of the U.S. with next-day delivery. Tractor Supply anticipates leveraging its store footprint and digital offerings to expand Allivet’s reach and sales opportunity. (For the last several years, Allivet’s PetRx platform has been a partner with Tractor Supply to offer digital pet pharmacy service under the Tractor Supply brand.)
Third Quarter
Tractor Supply had net income of $241.5 million, or $2.24 a share, for the quarter ended Sept. 28, in line with estimates and down from $255.0 million, or $2.33 a share, in the year-ago period.
Net sales increased 1.6% to $3.468 billion from $3.412 billion, just missing estimates of $3.484 billion. The increase was driven by new store openings.
Same-store sales fell 0.2%. Comparable store sales results reflect continued strength in big ticket categories, partially offset by declines in year-round discretionary categories.
“We delivered on our expectations for the third quarter amid a tepid retail sales environment while advancing our Life Out Here strategy,” stated Lawton. “The fundamentals of our business remain strong with ongoing market share gains.”
The retailer said it now expects earnings per share to range from $10.10 to $10.40, compared with its prior guidance of $10.00 to $10.40. It expects sales to range from $14.85 billion to $15.00 billion, compared with prior guidance of $14.8 billion to $15.0 billion.
As of Sept. 28, 2024, the company operated 2,270 Tractor Supply stores in 49 states and 205 Petsense by Tractor Supply stores in 23 states.
