Tractor Supply Company · NASDAQ:TSCO
Tractor Supply — Q4 2023 Earnings Presentation
15 slides from Tractor Supply's earnings presentation, Feb 1, 2024
Slide 1: Q4 2023 Supplemental Financial Presentation
TRACTOR SUPPLY C2 For Life Out Here Q4 2023 Supplemental Financial Presentation February 1, 2024
Slide 2: Safe Harbor
SAFE HARBOR The Company claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information in this presentation contains certain forward- looking statements. These statements discuss, among other things, statemen
Slide 3: Thank You Team Tractor!
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Slide 4: 2023 Highlights
2023 Highlights Continued Sales Growth and Market Share Gains All-Time High Customer Satisfaction Scores Accelerated Store Growth - 70 new Tractor Supply stores and 13 new Petsense stores - All 81 Orscheln Farm and Home stores converted - Increased long-term store target to 3,000 stores Advancing th
Slide 5: Customer Insights
Customer Insights Neighbor’s Club Sales Penetration at a Record - Tractor Supply sales penetration up to 77% - Petsense sales penetration up to nearly 70% Strength in Brand Equity with Growth in Brand Consideration and Unaided Awareness Record Level of High-Value Customers Total Customers Increased;
Slide 6: Q4 2023 Performance: Net Sales
Q4 2023 Performance Net Sales Net Sales Highlights (8.6%) (8.6%) Growth in C.U.E. Offset by Softness $4.01B in Seasonal and Big Ticket $3.66B Weather Negatively Impacted Net Sales Q4 2022 Q4 2023 by ~400 bps Comp Sales Comparable Transactions Declined 2.7% 8.6% Comparable Ticket Declined 1.5% (4.2%)
Slide 7: Q4 2023 Performance: Gross Margin and SG&A
Q4 2023 Performance Gross Margin SG&A Expenses as a % of net sales as a % of net sales +129 bps Expansion -113 bps Deleverage 35.3% 26.2% 34.0% 25.1% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Key Drivers Key Drivers • Ongoing Execution of Everyday Low Price Strategy and • Deleverage Primarily Attributed to Pl
Slide 8: Q4 2023 Performance: Profitability
Q4 2023 Performance Profitability Operating Margin Net Income Diluted EPS +16 bps (8.5%) (6.2%) $271M 9.1% $248M 9.0% $2.43 $2.28 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 *Note that Tractor Supply had a 53rd week in Fiscal Year 2022 contributing ~$225M in net sales and $0.16 in diluted earnin
Slide 9: FY 2023 Performance: Net Sales
FY 2023 Performance Net Net Sales Growth Sales Growth Highlights +2.5% +2.5% $14.56B $14.20B Net Sales Increased from Orscheln Farm & Home Acquisition and New Store Growth Opened 70 new Tractor Supply stores 2022 2023 and 13 new Petsense stores Comp Sales Growth Comparable Ticket Increased 0.4%, Com
Slide 10: FY 2023 Performance: Gross Margin and SG&A
FY 2023 Performance Gross Margin SG&A Expenses as a % of net sales as a % of net sales +92 bps Expansion -86 bps Deleverage 35.9% 25.8% 35.0% 24.9% 2022 2023 2022 2023 Key Drivers Key Drivers • Lower Transportation Costs from Improvement in the Global • Deleverage Primarily Attributed to Planned Gro
Slide 11: FY 2023 Performance: Profitability
FY 2023 Performance Profitability Operating Margin Net Income Diluted EPS +6 bps +1.7% +3.9% $1,107M $1,089M 10.2% 10.1% $10.09 $9.71 2022 2023 2022 2023 2022 2023 *Note that Tractor Supply had a 53rd week in Fiscal Year 2022 contributing ~$225M in net sales and $0.16 in diluted Earnings per Share t
Slide 12: 2024 Guidance
2024 Guidance Net Sales $14.7B to $15.1B Comparable Store Sales (1.0%) to +1.5% Operating Margin Rate 9.7% to 10.1% Net Income $1.06B to $1.13B Diluted Earnings Per Share $9.85 to $10.50 Net Capital Expenditures $625M to $700M Share Repurchases $575M to $625M Tractor Supply Stores 80 Petsense Stores
Slide 13: 2023 Calendarization
2023 Calendarization Depreciation Sale-Leaseback Tractor Supply Company had a One- Tractor Supply Company Initiated a New Time Depreciation Adjustment Benefit in Real Estate Strategy of Selling Legacy the Third Quarter of Fiscal Year 2023 Stores beginning in the Third Quarter of Fiscal Year 2023 The
Slide 14: We are committed to being an integral part of our customers' lives
Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities We are committed to being an integral part of our customers’ lives Operate the Tractor Way as the dependable supplier of Our Here Lifestyle solutions. Anytime. Anywhere. Anyway. Go the Country Mile for Our Team Generate Healt
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