TRACTOR SUPPLY CO DE

Previous wording

Net sales for the second quarter of fiscal 2024 increased 1.5% to $4.25 billion from $4.18 billion for the second quarter of fiscal 2023. The increase in net sales was driven by new store openings, partially offset by the decline in comparable store sales. Comparable store sales for the second quarter of fiscal 2024 decreased 0.5%. In the second quarter of fiscal 2023, net sales increased 7.2% and comparable store sales increased 2.5%.

Current wording

Net sales for the third quarter of fiscal 2024 increased 1.6% to $3.47 billion from $3.41 billion for the third quarter of fiscal 2023. The increase in net sales was driven by new store openings. Comparable store sales for the third quarter of fiscal 2024 decreased 0.2%, driven by a comparable average transaction count increase of 0.3%, offset by a comparable average ticket decrease of 0.5%. Comparable store sales results reflect continued strength in big ticket categories, partially offset by declines in year-round discretionary categories. As expected, consumable, usable and edible products were modestly negative with positive unit growth offset by average unit price pressure. In the third quarter of fiscal 2023, net sales increased 4.3% and comparable store sales decreased 0.4%.

Previous wording

Sales from new stores were $83.7 million for the second quarter of fiscal 2024, which represented 2.0 percentage points of the 1.5% net sales increase over second quarter fiscal 2023 net sales. For the second quarter of fiscal 2023, sales from stores open less than one year were $199.1 million, which represented 5.1 percentage points of the 7.2% increase over second quarter fiscal 2022 net sales.

Current wording

Sales from new stores were $70.1 million for the third quarter of fiscal 2024, which represented 2.0 percentage points of the 1.6% net sales increase over third quarter fiscal 2023 net sales. For the third quarter of fiscal 2023, sales from stores open less than one year were $157.5 million, which represented 4.8 percentage points of the 4.3% increase over third quarter fiscal 2022 net sales.

Previous wording

Gross profit increased 2.7% to $1.56 billion for the second quarter of fiscal 2024 from $1.51 billion for the second quarter of fiscal 2023. As a percent of net sales, gross margin in the second quarter of fiscal 2024 increased 43 basis points to 36.6% from 36.2% in the second quarter of fiscal 2023. The gross margin rate increase was primarily attributable to lower transportation costs and disciplined product cost management. Additionally, gross margin continued to benefit from the Company’s ongoing execution of an everyday low price strategy. These improvements were partially offset by the mix impact from strong growth in big ticket categories, which have below chain-average margins.

Current wording

Gross profit increased 3.2% to $1.29 billion for the third quarter of fiscal 2024 from $1.25 billion for the third quarter of fiscal 2023. As a percent of net sales, gross margin in the third quarter of fiscal 2024 increased 56 basis points to 37.2% from 36.7% in the third quarter of fiscal 2023. The gross margin rate increase was primarily attributable to ongoing lower transportation costs along with disciplined product cost management and the continued execution of an everyday low price strategy. These improvements in gross margin rate were partially offset by growth in big ticket categories, which have below chain-average margins.

Previous wording

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 4.1% to $994.2 million for the second quarter of fiscal 2024 from $955.4 million for the second quarter of fiscal 2023. As a percent of net sales, SG&A expenses increased 58 basis points to 23.4% from 22.8% in the second quarter of fiscal 2023. The increase in SG&A as a percent of net sales was primarily attributable to planned growth investments, which included the onboarding of a new distribution center and higher depreciation and amortization, as well as modest deleverage of the Company’s fixed costs given the decline in comparable store sales. These factors were partially offset by productivity improvements and strong cost control. During the second quarter of 2024, the Company’s ongoing sale-leaseback strategy benefited SG&A by approximately 12 basis points, net of transaction and repair costs, from the sale of two Tractor Supply locations.

Current wording

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 6.2% to $965.8 million for the third quarter of fiscal 2024 from $909.6 million for the third quarter of fiscal 2023. As a percent of net sales, SG&A expenses increased 119 basis points to 27.8% from 26.7% in the third quarter of fiscal 2023. The increase in SG&A as a percent of net sales was primarily attributable to planned growth investments, which included the onboarding of a new distribution center, lapping a one-time depreciation expense benefit in the prior year of $11.3 million or approximately 35 basis points, as well as modest deleverage of the Company’s fixed costs given the slight decline in comparable store sales. These factors were partially offset by a disciplined focus on productivity, cost control and modest benefits from the Company’s sale-leaseback strategy.

Previous wording

The effective income tax rate was 22.7% in the second quarter of fiscal 2024 compared to 23.0% in the second quarter of fiscal 2023. The decrease in the effective income tax rate in the second quarter of fiscal 2024 compared to the second quarter of fiscal 2023 was driven primarily by a decrease in state income taxes.

Current wording

The effective income tax rate was 22.3% in the third quarter of fiscal 2024 compared to 23.0% in the third quarter of fiscal 2023. The decrease in the effective income tax rate in the third quarter of fiscal 2024 compared to the third quarter of fiscal 2023 was driven primarily by a decrease in state income taxes and an increase in federal tax credits.

Previous wording

Net income for the second quarter of fiscal 2024 increased 0.9% to $425.2 million, or $3.93 per diluted share, as compared to net income of $421.2 million, or $3.83 per diluted share, for the second quarter of fiscal 2023.

Current wording

Net income for the third quarter of fiscal 2024 decreased 5.3% to $241.5 million, or $2.24 per diluted share, as compared to net income of $255.0 million, or $2.33 per diluted share, for the third quarter of fiscal 2023.

Previous wording

During the second quarter of fiscal 2024, we repurchased approximately 0.5 million shares of the Company’s common stock at a total cost of $139.2 million, excluding the 1% excise tax, as part of our share repurchase program and paid quarterly cash dividends totaling $118.5 million, returning $257.7 million to our stockholders.

Current wording

During the third quarter of fiscal 2024, we repurchased approximately 0.6 million shares of the Company’s common stock at a total cost of $149.8 million, excluding the 1% excise tax, as part of our share repurchase program and paid quarterly cash dividends totaling $117.8 million, returning $267.6 million to our stockholders.

Previous wording

Net sales for the first six months of fiscal 2024 increased 2.10% to $7.64 billion from $7.48 billion for the first six months of fiscal 2023. The increase in net sales was driven by contributions from new store sales and growth in comparable store sales. Comparable store sales for the first six months of fiscal 2024 increased 0.2%. In the first six months of fiscal 2023, net sales increased 8.0% and comparable store sales increased 2.3%.

Current wording

Net sales for the first nine months of fiscal 2024 increased 2.0% to $11.11 billion from $10.90 billion for the first nine months of fiscal 2023. The increase in net sales was driven by growth in new store sales which increased 2.0%. Comparable store sales for the first nine months of fiscal 2024 were flat. The comparable store sales results for the first nine months of fiscal 2024 included an increase in comparable average transaction count of 0.3%, partially offset by a decrease in comparable average transaction value of 0.2%. In the first nine months of fiscal 2023, net sales increased 6.8% and comparable store sales increased 1.5%.

Previous wording

Sales from new stores were $149.0 million for the first six months of fiscal 2024, which represented 2.0 percentage points of the 2.1% net sales increase over the first six months of fiscal 2023 net sales. For the first six months of fiscal 2023, sales from stores open less than one year were $339.6 million, which represented 4.9 percentage points of the 8.0% increase over the first six months of fiscal 2022 net sales.

Current wording

Sales from new stores were $219.1 million for the first nine months of fiscal 2024, which represented 2.0 percentage points of the 2.0% net sales increase over the first nine months of fiscal 2023 net sales. For the first nine months of fiscal 2023, sales from stores open less than one year were $498.2 million, which represented 4.9 percentage points of the 6.8% increase over the first nine months of fiscal 2022 net sales.

Previous wording

The following table summarizes store growth for the fiscal six months ended June 29, 2024 and July 1, 2023:

Current wording

The following table summarizes store growth for the fiscal nine months ended September 28, 2024 and September 30, 2023:

Previous wording

The following table indicates the percentage of net sales represented by each of our major product categories for the fiscal six months ended June 29, 2024 and July 1, 2023:

Current wording

The following table indicates the percentage of net sales represented by each of our major product categories for the fiscal nine months ended September 28, 2024 and September 30, 2023:

Previous wording

Gross profit increased 3.4% to $2.78 billion for the first six months of fiscal 2024 from $2.68 billion for the first six months of fiscal 2023. As a percent of net sales, gross margin in the first six months of fiscal 2024 increased 46 basis points to 36.3% from 35.9% in the first six months of fiscal 2023. The gross margin rate increase was primarily attributable to lower transportation costs and disciplined product cost management. Additionally, gross margin continued to benefit from the Company’s ongoing execution of an everyday low price strategy.

Current wording

Gross profit increased 3.3% to $4.07 billion for the first nine months of fiscal 2024 from $3.94 billion for the first nine months of fiscal 2023. As a percent of net sales, gross margin in the first nine months of fiscal 2024 increased 49 basis points to 36.6% from 36.1% in the first nine months of fiscal 2023. The gross margin rate increase was primarily attributable to lower transportation costs and disciplined product cost management. Additionally, gross margin continued to benefit from the Company’s ongoing execution of an everyday low price strategy.

Previous wording

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 3.8% to $1.95 billion for the first six months of fiscal 2024 from $1.88 billion for the first six months of fiscal 2023. As a percent of net sales, SG&A expenses increased 40 basis points to 25.5% for the first six months of fiscal 2024 from 25.1% for the first six months of fiscal 2023. The increase in SG&A as a percent of net sales was primarily attributable to the Company’s planned growth investments, which included higher depreciation and amortization. A modest deleverage of fixed costs given the level of comparable sales growth and start-up costs associated with the opening of a new distribution center also contributed to the increase in SG&A. These factors were partially offset by the benefit from increases in distribution center productivity and strong cost control.

Current wording

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 4.6% to $2.92 billion for the first nine months of fiscal 2024 from $2.79 billion for the first nine months of fiscal 2023. As a percent of net sales, SG&A expenses increased 65 basis points to 26.3% for the first nine months of fiscal 2024 from 25.6% for the first nine months of fiscal 2023. The increase in SG&A as a percent of net sales was primarily attributable to the Company’s planned growth investments, which included higher depreciation and amortization. A modest deleverage of fixed costs given the level of comparable sales growth and start-up costs associated with the opening of a new distribution center also contributed to the increase in SG&A as a percent of net sales. These factors were partially offset by a disciplined focus on productivity, cost control and modest benefits from the Company’s sale-leaseback strategy.

Previous wording

The effective income tax rate was 22.2% in the first six months of fiscal 2024 compared to 22.4% in the first six months of fiscal 2023. The decrease in the effective income tax rate in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 was driven primarily by a decrease in state income taxes partially offset by the lower tax benefit from decreased stock compensation activity.

Current wording

The effective income tax rate was 22.2% in the first nine months of fiscal 2024 compared to 22.6% in the first nine months of fiscal 2023. The decrease in the effective income tax rate in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 was driven primarily by a decrease in state income taxes.

Previous wording

Net income for the first six months of fiscal 2024 increased 3.2% to $623.4 million, or $5.75 per diluted share, as compared to net income of $604.3 million, or $5.47 per diluted share, for the first six months of fiscal 2023.

Current wording

Net income for the first nine months of fiscal 2024 increased 0.6% to $864.8 million, or $8.00 per diluted share, as compared to net income of $859.3 million, or $7.81 per diluted share, for the first nine months of fiscal 2023.

Previous wording

During the first six months of fiscal 2024, we repurchased approximately 1.0 million shares of the Company’s common stock at a total cost of $256.6 million, excluding the 1% excise tax, as part of our share repurchase program and paid quarterly cash dividends totaling $237.3 million, returning $494.0 million to our stockholders.

Current wording

During the first nine months of fiscal 2024, we repurchased approximately 1.6 million shares of the Company’s common stock at a total cost of $406.4 million, excluding the 1% excise tax, as part of our share repurchase program and paid quarterly cash dividends totaling $355.2 million, returning $761.6 million to our stockholders.

Previous wording

We plan to continue to leverage our sale-leaseback program on both existing owned stores as well as future new store openings. This program will help fund our planned owned store development. We plan to execute sale-leaseback transactions of our existing portfolio of owned stores to fund the cash required by the new development program over the next several years.

Current wording

We plan to continue to leverage our sale-leaseback program on both existing owned stores and future new store openings in order to help fund our planned owned store development over the next several years.

Previous wording

Operating activities provided net cash of $817.3 million and $782.3 million in the first six months of fiscal 2024 and fiscal 2023, respectively. The $35.2 million increase in net cash provided by operating activities in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 is due to changes in the following operating activities (in millions):

Current wording

Operating activities provided net cash of $903.6 million and $937.9 million in the first nine months of fiscal 2024 and fiscal 2023, respectively. The $34.3 million decrease in net cash provided by operating activities in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 is due to changes in the following operating activities (in millions):

Previous wording

The $35.2 million increase in net cash provided by operating activities in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 was primarily driven by changes in accrued expenses from timing of payments. This increase was partially offset by changes in deferred income taxes primarily driven by a decrease in bonus depreciation.

Current wording

The $34.3 million decrease in net cash provided by operating activities in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 was primarily driven by the increase in inventories and accounts payable due to overall Company growth, investments in both consumable, usable and edible products and big ticket inventory categories, and timing of accounts payable. This decrease was partially offset by changes in accrued expenses from timing of payments.

Previous wording

Investing activities used net cash of $331.3 million and $344.5 million in the first six months of fiscal 2024 and fiscal 2023, respectively. The $13.2 million decrease in net cash used in investing activities in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 is due to changes in the following investing activities (in millions):

Current wording

Investing activities used net cash of $460.1 million and $454.6 million in the first nine months of fiscal 2024 and fiscal 2023, respectively. The $5.5 million increase in net cash used in investing activities in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 is due to changes in the following investing activities (in millions):

Previous wording

The decrease in spending for existing stores in the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 primarily reflects the ongoing completion of Orscheln store remodels throughout fiscal 2023. Adjusting for the completion of Orscheln store remodels, existing store capital spend reflects a continued commitment to strategic initiatives related to existing store remodels. This includes internal space productivity and side lot garden center transformations.

Current wording

The decrease in spending for existing stores in the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 primarily reflects the ongoing completion of Orscheln store remodels throughout fiscal 2023. Adjusting for the completion of Orscheln store remodels, existing store capital spend reflects a continued commitment to strategic initiatives related to existing store remodels. This includes internal space productivity and side lot garden center transformations.

Previous wording

The increase in spending for new stores, relocated stores and stores not yet opened in the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 is primarily attributable to increased capital outlay associated with our owned store development program. This program began in the third quarter of fiscal 2023.

Current wording

The increase in spending for new stores, relocated stores and stores not yet opened in the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 is primarily attributable to increased capital outlay associated with our owned store development program. This program began in the third quarter of fiscal 2023.

Previous wording

The increase in spending for information technology in the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 is attributable to continued support for improvements in mobility in our stores, our digital initiatives, increased security and compliance, and other strategic initiatives.

Current wording

The increase in spending for information technology in the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 is attributable to continued support for improvements in mobility in our stores, our digital initiatives, increased security and compliance, and other strategic initiatives.

Previous wording

The decrease in spending for distribution center capacity and improvements in the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 primarily reflects a reduction in distribution center construction projects. The first six months of fiscal 2023 reflect construction costs associated with both the Navarre, Ohio distribution center, which opened during the first quarter of fiscal 2023, and the Maumelle, Arkansas distribution center, which opened during the second quarter of fiscal 2024. The first six months of fiscal 2024 solely reflect construction costs associated with the Maumelle, Arkansas distribution center.

Current wording

The decrease in spending for distribution center capacity and improvements in the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 primarily reflects a reduction in distribution center construction projects. The first nine months of fiscal 2023 reflect construction costs associated with both the Navarre, Ohio distribution center, which opened during the first quarter of fiscal 2023, and the Maumelle, Arkansas distribution center, which opened during the second quarter of fiscal 2024. The first nine months of fiscal 2024 solely reflect construction costs associated with the Maumelle, Arkansas distribution center.

Previous wording

In the first six months of fiscal 2024, the Company opened 38 new Tractor Supply stores compared to 34 new Tractor Supply stores during the first six months of fiscal 2023. The Company also opened seven new Petsense by Tractor Supply stores during the first six months of fiscal 2024 compared to six stores during the first six months of fiscal 2023.

Current wording

In the first nine months of fiscal 2024, the Company opened 54 new Tractor Supply stores compared to 51 new Tractor Supply stores during the first nine months of fiscal 2023.

Previous wording

Our projected capital expenditures for fiscal 2024 are currently estimated to be in the range of $625 million to $700 million, net of proceeds from the sale of existing Company-owned stores as part of our sale-leaseback strategy. The capital expenditures include plans to open a total of approximately 80 new Tractor Supply stores, continue Project Fusion remodels and garden center transformations, and open a total of 10 to 15 new Petsense by Tractor Supply stores.

Current wording

Our projected capital expenditures for fiscal 2024 are currently estimated to be in the range of $625.0 million to $700.0 million, net of proceeds from the sale of existing Company-owned stores as part of our sale-leaseback strategy. The capital expenditures include plans to open a total of approximately 80 new Tractor Supply stores, continue Project Fusion remodels and garden center transformations, and open a total of 10 to 15 new Petsense by Tractor Supply stores.

Previous wording

Financing activities used net cash of $488.3 million and $20.3 million in the first six months of fiscal 2024 and fiscal 2023, respectively. The $468.0 million increase in net cash used in financing activities in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 is due to changes in the following (in millions):

Current wording

Financing activities used net cash of $654.3 million and $264.1 million in the first nine months of fiscal 2024 and fiscal 2023, respectively. The $390.2 million increase in net cash used in financing activities in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 is due to changes in the following (in millions):

Previous wording

The $468.0 million increase in net cash used in financing activities in the first six months of fiscal 2024 compared to the first six months of fiscal 2023 is primarily due to the absence of borrowing activity in the current period partially offset by a slight timing shift in the repurchase of common stock as compared to prior period.

Current wording

The $390.2 million increase in net cash used in financing activities in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 is primarily due to the reduced borrowing activity in the current period, partially offset by a decrease in the repurchase of common stock as compared to prior period.

Previous wording

During the first six months of fiscal 2024 and fiscal 2023, the Company's Board of Directors declared the following cash dividends:

Current wording

During the first nine months of fiscal 2024 and fiscal 2023, the Company's Board of Directors declared the following cash dividends:

Previous wording

The Company’s Board of Directors has authorized common stock repurchases under a share repurchase program which was announced in February 2007. The total authorized amount of the program, which has been increased from time to time, is currently $6.50 billion, exclusive of any fees, commissions, or other expenses related to such repurchases. The share repurchase program does not have an expiration date. The repurchases may be made from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased under the program will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability, and other market conditions. Repurchased shares are accounted for at cost and will be held in treasury for future issuance. The program may be limited, temporarily paused, or terminated at any time without prior notice. As of June 29, 2024, the Company had remaining authorization under the share repurchase program of $0.79 billion, exclusive of any fees, commissions, or other expenses.

Current wording

The Company’s Board of Directors has authorized common stock repurchases under a share repurchase program which was announced in February 2007. The total authorized amount of the program, which has been increased from time to time, is currently $6.50 billion, exclusive of any fees, commissions, or other expenses related to such repurchases. The share repurchase program does not have an expiration date. The repurchases may be made from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased under the program will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability, and other market conditions. Repurchased shares are accounted for at cost and will be held in treasury for future issuance. The program may be limited, temporarily paused, or terminated at any time without prior notice. As of September 28, 2024, the Company had remaining authorization under the share repurchase program of $641.7 million, exclusive of any fees, commissions, or other expenses.

Previous wording

The following table provides the number of shares repurchased, average price paid per share, and total cost of share repurchases pursuant to our publicly announced repurchase plan during the fiscal three and six months ended June 29, 2024 and July 1, 2023, respectively (in thousands, except per share amounts):

Current wording

The following table provides the number of shares repurchased, average price paid per share, and total cost of share repurchases pursuant to our publicly announced repurchase plan during the fiscal three and nine months ended September 28, 2024 and September 30, 2023, respectively (in thousands, except per share amounts):

Previous wording

For a description of the Company’s significant contractual obligations and commercial commitments, refer to Note 12 to the Consolidated Financial Statements included under Part II, Item 8 in our 2023 Form 10-K. As of June 29, 2024, the Company had contractual commitments of approximately $12.8 million related to the construction and onboarding of new distribution centers. As of June 29, 2024, there has been no other material change in the information disclosed in the 2023 Form 10-K.

Current wording

For a description of the Company’s significant contractual obligations and commercial commitments, refer to Note 12 to the Consolidated Financial Statements included under Part II, Item 8 in our 2023 Form 10-K. As of September 28, 2024, there has been no other material change in the information disclosed in the 2023 Form 10-K.