Q4 2024 Tractor Supply Co Earnings Call Transcript
Key Points
- Tractor Supply Co (TSCO) achieved record financial results for the fiscal year 2024, with net sales nearly reaching $14.9 billion and a record diluted EPS of $2.04.
- The company opened 80 new Tractor Supply stores and 11 Petsense stores in 2024, demonstrating strong expansion efforts.
- Tractor Supply Co (TSCO) returned over $1 billion to shareholders through dividends and share repurchases for the fourth consecutive year.
- The Neighbor's Club loyalty program continues to grow, with membership now exceeding 38 million and representing 80% of sales.
- The acquisition of Allivet is expected to expand Tractor Supply Co (TSCO)'s total addressable market by $15 billion, enhancing its offerings to pet owners.
- Comparable store sales growth was modest at 0.2% for the fiscal year, indicating challenges in driving same-store sales.
- The company faced a 69 basis point decline in operating margin for the fourth quarter, attributed to planned growth investments and modest deleverage of fixed costs.
- Deflation in key product categories, particularly commodity-based products, posed a headwind, with an estimated 100 basis point drag on comp sales performance in the quarter.
- The warm weather in November and December negatively impacted winter seasonal business, affecting sales in categories like insulated outerwear and heating.
- Tractor Supply Co (TSCO) anticipates continued SG&A deleverage in 2025 due to increased depreciation and investments in strategic initiatives.
Good morning, ladies and gentlemen, and welcome to Tractor Supply Company's conference call to discuss fourth quarter and fiscal year 2024 results. (Operator Instructions) Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Tractor Supply Company. And as a reminder, this call is being recorded. The host for today's call is Mary Winn Pilkington, Senior Vice President of Investor and Public Relations for Tractor Supply Company.
Now first up is a year-end video.
(video playing).
I would now like to pass the call to our host, Mary Winn Pilkington. Mary Winn, please go ahead.
Thank you, Alissa. Good morning, everyone. We appreciate your time and participation in today's call. On the call today are Hal Walton, our CEO; and Kurt Barton, our CFO. Following our prepared remarks, we'll open the floor for questions. Seth Estep, our Chief Merchandising Officer, will also be
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