Tractor Supply Reveals ‘Life Out Here 2030’ Strategy at 2024 Investment Community Day

Tractor Supply Unveils Strategic Vision for 2030, Announces Key Growth Initiatives and Stock Split

Highlights Key Growth Strategy and Expands Store Target to 3,200 Locations

BRENTWOOD, Tenn. – Tractor Supply Company (NASDAQ: TSCO), the U.S.’s largest rural lifestyle retailer, today presented its Life Out Here 2030 strategy at the company’s 2024 Investment Community Day, outlining its vision for robust future growth.

“Tractor Supply has built a strong foundation over the years. Our performance in the last five years demonstrates the success of our Life Out Here strategy. With a broadened addressable market of $225 billion, we have significant opportunities ahead,” said Hal Lawton, President and CEO. “The new Life Out Here 2030 strategy continues the momentum, introducing new initiatives such as Pet Rx and Direct Sales while building on our past successes. We are committed to driving sustainable growth and delivering long-term value to our shareholders.”

Key Updates from Investment Community Day:

At the event, Tractor Supply’s executive team highlighted key milestones from the past five years and shared insights into the Life Out Here 2030 strategy. Highlights include:

  • Project Fusion: Nearly 50% of stores have adopted the new layout and remodel program.
  • Garden Centers: Over 550 garden centers have been added to stores.
  • Neighbor’s Club: 22 million new members have joined the loyalty program.
  • Digital Sales: Digital sales have grown by over 340%.
  • Distribution Expansion: The company has opened 13 new distribution centers.

The new initiatives included in the Life Out Here 2030 strategy are designed to further strengthen Tractor Supply’s market position:

  • Localization: Adapting product selection to meet regional and demographic needs while upgrading store layouts.
  • Direct Sales: Expanding Tractor Supply’s customer service into business-to-business markets, including larger farms and small to medium-sized enterprises.
  • Pet and Animal Rx: Enhancing offerings for pet and animal customers to increase loyalty, particularly among the 37 million Neighbor’s Club members.
  • Final Mile Delivery: Implementing a scalable delivery solution to improve order visibility and reliability, benefiting direct sales and B2B markets.
  • Tractor Supply Retail Media Network: Expanding media services for brand partners to generate new profit streams.
  • Private and Exclusive Brands: Increasing private label and exclusive brand penetration to enhance differentiation and improve margins.

Updated Growth Outlook:

Tractor Supply also updated its long-term financial targets, including:

  • Net Sales: 6% to 8% growth annually.
  • Comparable Store Sales: 3% to 5% growth.
  • Operating Margin: 10% to 10.5%.
  • Earnings Per Diluted Share: 8% to 11% growth.
  • Capital Expenditures: Around 4% of Net Sales.
  • Share Repurchases: Aiming for a 1% to 2% reduction in net float.

The company projects opening 90 new Tractor Supply stores and 10 new Petsense by Tractor Supply stores in 2025, increasing its long-term store count to 3,200, up from 3,000.

Stock Split Announcement:

In a move to enhance stock accessibility, Tractor Supply’s Board of Directors approved a 5-for-1 stock split. Shareholders of record on December 16, 2024, will receive four additional shares for every share held, with the split taking effect after market close on December 19, 2024. Shares will begin trading on a stock-split-adjusted basis on December 20, 2024.

The stock split is the fifth such split since Tractor Supply went public over 30 years ago and is designed to make shares more affordable to both team members and retail investors.

Looking Ahead:

Tractor Supply is well-positioned for future growth, capitalizing on its competitive advantages and expanding market opportunities. The company’s strategic investments, along with continued execution of its Life Out Here 2030 strategy, are expected to drive continued market share gains and long-term shareholder value.

Webcast Information:

The event will be webcast live today, December 5, 2024, at 1:00 p.m. ET. A replay will be available shortly after the presentation at IR.TractorSupply.com.

About Tractor Supply Company:

For over 85 years, Tractor Supply Company (NASDAQ: TSCO) has been a leader in serving the needs of rural lifestyle customers. Operating over 2,270 stores across 49 states as of September 2024, the company offers a wide range of products for farmers, ranchers, homeowners, and pet enthusiasts. Tractor Supply also owns and operates Petsense by Tractor Supply, a small-box pet specialty retailer with 205 locations across 23 states. Learn more at www.tractorsupply.com and www.Petsense.com.

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