Investment Community Day Highlights
During the Investment Community Day, Tractor Supply's executive leadership team will share the significant progress the Company has made over the last five years to transform its business and outline the next phase of its strategic plan, Life Out Here 2030. Since first introducing its Life Out Here strategy in October 2020, the Company has scaled its Project Fusion store layout and remodel program to about 50% of its stores, completed more than 550 garden centers, added 22 million members to its Neighbor's Club loyalty program, grown its digital sales by more than 340% and opened 13 distribution facilities. The Company's Life Out Here 2030 strategy complements this progress with the addition of the following strategic initiatives:
- Localization – Tailor product selection to meet specific demographic and regional needs to maximize relevance while remodeling store layout and adding updated features
- Direct Sales Opportunity – Extend its legendary customer service to address the "Out Here" business-to-business market including larger farms, small to medium businesses and event spaces
- Pet and Animal Rx – Expand capabilities to grow share of wallet with pet and animal customers while driving increased loyalty through its more than 37 million Neighbor's Club members
- Final Mile Delivery – Create a comprehensive and scalable final mile delivery solution to provide greater order visibility and delivery reliability to its customers and unlock the potential of its direct sales opportunity
- Tractor Supply Retail Media Network – Scale comprehensive media platform to support its brand partners and activate a new profit stream
- Private / Exclusive Brands – Increase penetration of private label and exclusive licensed brands to enhance differentiation and improve gross margins
As part of its Life Out Here 2030 strategy, Tractor Supply is updating its long-term financial algorithm. The Company's management will provide further insights on these financial targets at today's event.
Kurt Barton, executive vice president and chief financial officer of Tractor Supply, commented, "Tractor Supply is committed to building on our longstanding track record of creating shareholder value. Capitalizing on our key competitive advantages and the ongoing strength of our current initiatives, along with investments in new growth opportunities, positions us well to continue gaining market share."
| Targets | ||||||
| Net Sales | +6% to +8% | |||||
| Comparable Store Sales | +3% to +5% | |||||
| Operating Margin | 10% to 10.5% | |||||
| Earnings per Diluted Share | +8% to +11% | |||||
| Capital Expenditures | ~4% of Net Sales | |||||
| Share Repurchases | 1% to 2% Net Float Reduction |
In 2025, the Company anticipates opening 90 new Tractor Supply stores and approximately 10 new Petsense by Tractor Supply stores. The Company updated its total addressable market to approximately $225 billion from $180 billion and its long-term store count to 3,200, an increase of 200 locations.
These estimated growth rate targets do not constitute guidance for any currently identifiable period and represent long-term annual targets over time. Performance in any individual year may be lower or higher than these targets.
