Tractor Supply Company · NASDAQ:TSCO
Tractor Supply — Q2 2021 Earnings Presentation
14 slides from Tractor Supply's earnings presentation, Jul 19, 2021
Slide 1: Supplemental Financial Presentation
Supplemental Financial Presentation July 19, 2021
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 Team Tractor!
THANK YOU TEAM TRACTOR!
Slide 4: Q2 2021 Performance Highlights: Strong Sales Growth
Q2 2021 Performance Strong Sales Growth Net Sales Growth ($ in Billions) HIGHLIGHTS +13.4% $3.60 Every Week in Quarter was Positive $3.18 Average Ticket Up 6.0% Q2 2020 Q2 2021 Customer Traffic Increased 4.5% Comp Sales Growth +41.0% Highest E-Commerce 30.5% 2-Year Stack Sales Quarter on Record 10.5
Slide 5: Broad-Based Strength in Customer Trends
Broad-Based Strength in Customer Trends New Customers Neighbor’s Club New Customer Retention at All-Time Highs 21M+ Members 5
Slide 6: Q2 2021 Performance: Gross Margin and SG&A
Q2 2021 Performance Gross Margin SG&A Expenses as a % of net sales as a % of net sales -67 bps Decrease +6 bps Improvement 36.4% 35.8% 22.3% 22.3% Q2 2020 Q2 2021 Q2 2020 Q2 2021 Key Drivers Key Drivers • Approximately 90 bps higher than Q2 2019 • Lower COVID-19 Costs • Higher Freight Costs • Decrea
Slide 7: Q2 2021 Performance: Profitability
Q2 2021 Performance Profitability Operating Income Net Income Diluted EPS +8.5% +9.3% +10.0% $370.0 $3.19 $485.9 $2.90 $447.7 $338.7 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 7
Slide 8: 2021 Outlook
Net Sales $12.1B to $12.3B Comparable Store Sales +11% to +13% Operating Margin Rate 9.7% to 9.9% Net Income $895M to $930M Diluted Earnings Per Share $7.70 to $8.00 Capital Expenditures $500M to $600M Effective Tax Rate 22.1% to 22.4% Share Repurchases $700M to $800M 8
Slide 9: Side Lot
FOR LIFE OUT HERE
Slide 10: Project Fusion
Project Fusion 10
Slide 11: Neighbor's Club Relaunch
q i e aR wUewe Cee Ue PREFERRED PREFERRED PLUS NEIGHBOR NEIGHBOR NEIGHBOR ‘Spend °2,000+ Pr Calendar Yeer $1,000- Spend ‘0-'999 Spend on 999.99 ‘As aTSC Personal Shop TSG Per€alender Yor oe (rte Cardholer 2points ‘er Spent 1point 15 points bd Eam Points polars ‘Per‘l spent Spoints ‘Persona real Cord
Slide 12: ESG Updates
ESG Updates Published 2nd Annual 2020 ESG Tear Sheet Nearly $500k invested in DE&I Organizations in the Last Twelve Months Announced Off-Cycle Raises for 27,000+ Team Members Great Place to Work Certified® October 2020 – October 2021 12
Slide 13: Life Out Here Strategy
LIFE’ HERE STRATEGY We are committed to being an integral part of our customers’ lives as the dependable supplier of Out Here Lifestyle solutions. Anytime e Anywhere e Anyway TRACTOR SUPPLY C? ~e a Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities Operate the Tractor Way | G
Slide 14: Slide 14
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