Tractor Supply (TSCO) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of $14.88 billion for fiscal 2024, up 2.2% year-over-year, with comparable store sales up 0.2%.

• Fourth quarter net sales grew 3.1% to $3.77 billion, with comparable store sales up 0.6% and transaction growth of 2.3%.

• Opened 80 new Tractor Supply stores and 11 Petsense stores; launched 10th and largest distribution center.

• Returned over $1 billion to shareholders for the fourth consecutive year through dividends and share repurchases, marking 15 years of dividend growth.

• Neighbor's Club loyalty program penetration reached nearly 80% of sales, with 43 consecutive months of customer satisfaction increases.

Financial highlights

• Q4 diluted EPS was $0.44; full-year diluted EPS reached $2.04 (split-adjusted), up 1.1% year-over-year.

• Q4 gross margin was 35.2% (-9 bps YoY); FY 2024 gross margin was 36.3% (+34 bps YoY).

• Q4 SG&A as a percent of net sales increased 60 basis points to 26.8%; FY 2024 SG&A was 26.4%.

• Q4 operating margin was 8.4% (-69 bps YoY); FY 2024 operating margin was 9.9% (-30 bps YoY).

• Fiscal 2024 net income was $1.10 billion, down 0.5% year-over-year.

Outlook and guidance

• Fiscal 2025 net sales forecasted at $15.6–$15.9 billion, up 5%–7%, with comp sales growth of 1%–3%.

• Diluted EPS guidance for 2025 is $2.10–$2.22; operating margin expected at 9.6%–10%.

• Net income guidance: $1.12–$1.18 billion; capital expenditures planned at $650–$725 million; share repurchases of $525–$600 million.

• Plan to open 90 Tractor Supply stores and 10 Petsense stores in 2025.

• Gross margin expected to expand 20–40 basis points in 2025, offset by higher depreciation and investments.