Tractor Supply Company (NASDAQ: TSCO) unveiled its Life Out Here 2030 strategy at the 2024 Investment Community Day, providing a clear roadmap for robust growth and announcing an accelerated new store growth outlook. The company has raised its target for new store opportunities to 3,200 stores, representing an increase of 200 sites.
Since first introducing its Life Out Here strategy in October 2020, the company has achieved significant milestones. It has scaled its project fusion store layout and remodel program to about 50% of its stores, completed over 550 garden centers, added 22 million members to its neighbor’s club loyalty program, grown digital sales by more than 340%, and opened 13 distribution facilities.
The new strategic initiatives under the Life Out Here 2030 strategy include localization, direct sales opportunity, pet and animal RX, final mile delivery, Tractor Supply Retail Media Network, and private/exclusive brands.
As part of its updated long-term financial algorithm, the company's targets for various metrics have been revised. These targets include a 6% to 8% increase in net sales, a 3% to 5% increase in comparable store sales, and an operating margin of 10% to 10.5%. Additionally, the company anticipates an 8% to 11% increase in earnings per diluted share, with capital expenditures at approximately 4% of net sales and 1% to 2% net float reduction through share repurchases.
In 2025, Tractor Supply Company plans to open 90 new Tractor Supply stores and approximately 10 new Petsense by Tractor Supply stores. The company has also 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.
Furthermore, the board of directors has approved a 5-for-1 stock split of the company’s issued common stock to make its stock more accessible to team members and investors. Shareholders of record as of December 16, 2024, will receive four additional shares for each share held, with the stock split expected to begin trading on a stock-split adjusted basis at the market open on December 20, 2024.
Tractor Supply Company's Executive Vice President and Chief Financial Officer, Kurt Barton, expressed confidence in the company's ability to continue gaining market share and creating shareholder value. The company's history of stock splits aims to make its common stock more affordable and appealing to potential investors, including team members, and increase the liquidity of trading shares.
Tractor Supply Company's Investment Community Day webcast, which took place on December 5, 2024, provided insights into the company's continued growth and strategic initiatives, positioning it for sustained success. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $282.47. If you want to know more, read the company's complete 8-K report here.
