Tractor Supply's Strategic Efforts Position Firm for Continued Sales and Profit Growth Ahead

Tractor Supply is the largest consumer farm specialty retailer in the United States, surpassing $14.8 billion in sales in fiscal 2024. The firm has differentiated itself through its products and customer demographics, which provide underlying support to its brand intangible assets and wide economic moat. At the end of 2024, the store base had grown about 24% over the prior five-year period, to more than 2,500 locations, including acquired locations from Orscheln and Petsense, driving sales and EPS average annual growth rates over the past three years of 5% and 6%, respectively. We forecast that the firm will grow to over 3,400 stores by 2034 as it populates big-box centers in underpenetrated exurbs, with Petsense accounting for about 300 units.