Tractor Supply sales and profits fade in Q4
Tractor Supply Company reported sales for the fourth quarter 2023 fell 8.6% to $3.66 billion in comparison to sales of $4.01 billion in the fourth quarter 2022.
The farm and ranch retailer attributed the decrease in net sales to a decline in comparable store sales, partially offset by positive sales contributions from new stores.
Comparable store sales decreased 4.2% in the fourth quarter from a comp sales increase of 8.6% for the same period a year ago. The retailer also said its comparable average ticket decreased by 1.5% as the comparable average transaction count was down 2.7%.
In the fourth quarter of 2022, comparable store sales benefited by approximately 200 basis points from a late December winter storm, the company said.
Full-year sales increased 2.5% to $14.56 billion from $14.2 billion in fiscal 2022. Comparable store sales were even with the prior year versus a 6.3% increase in fiscal 2022.
Tractor Supply’s fourth quarter net income receded 8.5% to $247.9 million from a net income of $270.9 million for the corresponding quarter a year ago.
The Brentwood, Tennessee-based company posted a net income of $1.11 billion for the year, moving upward 1.7% from a net income of $1.09 billion.
During the fourth quarter, Tractor Supply opened 19 new Tractor Supply stores and three new Petsense by Tractor Supply stores, while closing one Tractor Supply store.
In fiscal 2023, the company opened 70 new Tractor Supply stores and 13 new Petsense by Tractor Supply stores, and closed one Tractor Supply store and one Petsense by Tractor Supply store.
Additionally, in 2023 the company rebranded 81 Orscheln Farm and Home stores to the Tractor Supply banner. The stores were acquired by Tractor Supply in October 2022.
As of Dec. 30, 2023, the retailer operated 2,216 Tractor Supply stores in 49 states along with 198 Petsense by Tractor Supply stores in 23 states.
Regarding expansion in 2024, Tractor Supply’s capital plans include opening approximately 80 stores, continuing Project Fusion remodels and garden center transformations, and opening between 10 to 15 new Petsense by Tractor Supply stores.
Other plans for 2024 include the completion of its 10th distribution center. The company broke ground on the projected 1.2-million-square-facility, located in Maumelle, Arkansas, in October 2022.
Looking toward the remainder of 2024, Tractor Supply expects sales in the range of $14.7 billion to $15.1 billion. The company is also forecasting a net income in the range of $1.06 billion to $1.13 billion.
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The Bottom Line: The retailer’s net income falls 8.5% to $247.9 million in the fourth quarter but edges ahead by 1.7% for the full year.
What the CEO said: "In 2024, we will continue to invest to strengthen our competitive advantages and to capture the significant growth opportunities in our market,” said Tractor Supply President and CEO Hal Lawton. “We believe that our business can continue to perform well in the coming years given the investments we have made in our Life Out Here strategy. We remain excited about our bright future and are committed to delivering sustained long-term value creation for our shareholders.”
Company info: For the full fourth quarter 2023 and year-end financial report from Tractor Supply, click here.
