Tractor Supply sales rise 3.1%; to open 90 stores, continue remodels in 2025
Tractor Supply Co., which narrowly missed fourth-quarter expectations, is going full steam ahead with its ambitious expansion strategy.
The nation’s largest rural retailer said its capital plans for 2025 include opening approximately 90 Tractor Supply stores, 10 Petsense by Tractor Supply stores and continuing Project Fusion remodels and garden center transformations. It also is building its 11th distribution center.
In December, as part of its “Life Out Here” strategy, Tractor Supply increased its long-term store count goal to 3,200 locations, up from its previously announced target of 3,000.
Tractor Supply reported that its net income totaled $236.4 million, or $0.44 a share, in the quarter ended Dec. 28, compared with $247.9 million, or $.46 a share, in the year-ago quarter. Analysts expected earnings of $0.45 a share.
Revenue rose 3.1% to $3.77 billion from $3.66 billion. Analysts had expected revenue of $3.78 billion.
Comparable store sales increased 0.6%, driven by a comparable average transaction count increase of 2.3%, partially offset by a comparable average ticket decrease of 1.7%.
For the full year, net sales increased 2.2% to $14.88 billion from $14.56 billion. Comparable store sales increased 0.2%.
“In 2024, our business performed well in a challenging retail environment, and we made significant progress on our Life Out Here strategy,” said CEO Hal Lawton. “We achieved numerous milestones during the year, including having about half of our stores in the Project Fusion layout and opening our 10th and largest distribution center. The fundamentals of our business remain strong with ongoing market share gains, record Neighbor’s Club members, digital sales in excess of one billion dollars and high-return new store openings.”
Looking ahead, Lawton said the company expects 2025 comparable store sales to improve throughout the year as the “macro headwinds impacting our business abate.” He pointed to Tractor Supply’s acquisition of online pet pharmacy Allivet as a “great example of unlocking new opportunities for growth.”
“We enter the back half of the decade with momentum and opportunity,” Lawton said. “Our existing initiatives are creating value and have continued runway for growth. Our recently announced Life Out Here 2030 strategy represents significant opportunities to continue to gain market share in a growing total addressable market.”
For the full year, Tractor Supply expects revenue to increase between 5% and 7%. Comparable store sales are expected to increase between 1% and 3%. Earnings are expected to range between $2.10 and $2.22 a share.
As of Dec. 28, 2024, Tractor Supply operated 2,296 namesake stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states.