Tractor Supply Company · NASDAQ:TSCO
Tractor Supply — Q4 2022 Earnings Presentation
16 slides from Tractor Supply's earnings presentation, Jan 26, 2023
Slide 1: Supplemental Financial Presentation Q4 and FY 2022
Supplemental Financial Presentation Q4 and FY 2022
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, expectati
Slide 3: Thank you to our 50,000+ team members across 2,100+ stores
THANK YOU TO OUR 50,000 TEAM MEMBERS + ACROSS 2,100+ STORES 3
Slide 4: 2022 Milestones
2022 Milestones Another Year of Record Net Sales and Earnings, Marking 30+ Years of Sales Growth 28+ Million Neighbor’s Club Members, 20%+ YoY 4 Consecutive Quarters of All-Time High Customer Satisfaction Scores Returned More Than $1 Billion in Capital to Shareholders for the 2nd Consecutive Year Br
Slide 5: Established a $5 Million Scholarship Program to FFA
Established a $5 Reduced Absolute Million Scholarship Scope 1&2 GHG Program to FFA Emissions by 5%
Slide 6: Q4 2022 Performance Highlights
Q4 2022 Performance * Strong Sales Growth HIGHLIGHTS Net Sales Growth ($ in Billions) 11 Consecutive Quarters of +20.7% $4.0 Remarkable Growth $3.3 Average Ticket Up 6.3%; Customer Q4 2021 Q4 2022 Transactions Increased 2.3% Comp Sales Growth All Months Comped Positive +21.3% 2-Year Stack 7th Consec
Slide 7: FY 2022 Performance Highlights
FY 2022 Performance* Strong Sales Growth HIGHLIGHTS Net Sales Growth ($ in Billions) $12.7 +11.6% $14.2 Sales Surpass $14B – A New Record Average Ticket Up 6.9%; Customer FY 2021 FY 2022 Transactions Decreased 0.6% Comp Sales Growth Achieved $1 Billion in Private Label +23.2% Credit Card Sales 2-Yea
Slide 8: Impact of the 53rd Week in 2022
Impact of the 53rd Week in 2022 Q4 2022 FY 2022 Net Sales Contribution $225M $225M as a % of Sales 5.6% 1.6% Contribution to Sales Growth +6.8% +1.8% Impact to Diluted EPS $0.16 $0.16 8
Slide 9: Broad-Based Strength in Customer Trends
Broad-Based Strength in Customer Trends Reached an All-Time High in High-Value Customers Neighbor’s Club +47% Neighbor’s Club Growth in the Last 2 Years 28M+ Members 9
Slide 10: Q4 2022 Performance: Gross Margin and SG&A
Q4 2022 Performance Gross Margin SG&A Expenses as a % of net sales as a % of net sales +28 bps Increase +14 bps Increase 24.9% 25.1% 33.8% 34.0% Q4 2021 Q4 2022 Q4 2021 Q4 2022 Key Drivers Key Drivers • Strong Price Management Actions and Other Margin Driving • Transaction Expenses and Early Integra
Slide 11: FY 2022 Performance: Gross Margin and SG&A
FY 2022 Performance Gross Margin SG&A Expenses as a % of net sales as a % of net sales -17 bps Decrease Flat to LY 24.9% 24.9% 35.2% 35.0% FY 2021 FY 2022 FY 2021 FY 2022 Key Drivers Key Drivers • Strong Price Management Actions and Other Margin Driving • Strategic Growth Initiatives, including D&A
Slide 12: Q4 2022 Performance: Profitability
Q4 2022 Performance * Profitability Operating Income Net Income Diluted EPS +22.6% +22.4% +25.9% $2.43 $359.2M $270.9M $293.1M $1.93 $221.3M Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 12 * 2022 included an extra sales week as part of the Company’s 53-week calendar. See slide 8 for more informat
Slide 13: FY 2022 Performance: Profitability
FY 2022 Performance* Profitability Operating Income Net Income Diluted EPS +9.8% +9.2% +12.8% $1.43B $9.71 $1.09B $1.31B $997.1M $8.61 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 13 * 2022 included an extra sales week as part of the Company’s 53-week calendar. See slide 8 for more information.
Slide 14: Fiscal 2023 Outlook
Fiscal 2023 Outlook Net Sales $15.0B to $15.3B Comparable Store Sales +3.5% to +5.5% Operating Margin Rate 10.1% to 10.3% Net Income $1.13B to $1.17B Diluted Earnings Per Share $10.30 to $10.60 Capital Expenditures $700M to $775M Effective Tax Rate 22.7% to 23.0% Share Repurchases $575M to $675M 14
Slide 15: Deliver Legendary Customer Experiences
Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities We are committed to being an integral part of our customers’ lives Operate the as the dependable supplier of Tractor Way Out Here Lifestyle solutions. Anytime • Anywhere • Any Way Go the Country Mile for Our Team Generate Hea
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