“Our customers’ trust and confidence in us are of the utmost importance to everyone at John Deere. We fully intend to earn it every day and in every way we can,” the post read, along with a full statement.

Their efforts include pledging the company “will no longer participate in or support external social or cultural awareness parades, festivals or events,” will be “auditing all company-mandated training materials and policies to ensure the absence of socially motivated messages” and “reaffirming within the business that the existence of diversity quotas and pronoun identification have never been and are not company policy.” 

In addition, the statement said that employee resource groups “will exclusively be focused on professional development, networking, mentoring and supporting talent recruitment efforts.”

The statement came about a week after filmmaker Robby Starbuck released a video report on a number of woke policies at John Deere, saying he found the company was “funding a pride event for kids as young as 3,” asking employees to “list their ‘preferred pronouns’ on all communications,” promoting a “United for Equity” program among accounting and finance teams and forming “LGBTQ & race-based identity groups at corporate.”

While John Deere did not reference the report directly, the company’s statement emphasized its commitment to listening and responding to customer feedback.

“To best serve our customers and employees, Deere is always listening to feedback and looking for opportunities to improve. That’s why we consistently prioritize internal policies that more closely align our business strategy to meet the needs of our customers,” the statement read.

Tractor Supply was similarly attacked for promoting woke policies before reversing course. The company announced in June that it will ax DEI goals and positions and cease sponsorship of “nonbusiness activities” such as Pride festivals and voting campaigns, with the intention of focusing more on “rural America priorities.”

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Tractor Supply is available on the DoorDash marketplace to offer a wide selection of products in categories such as home improvement, farm and ranch, lawn and garden, and more. Consumers can purchase Tractor Supply products directly on the DoorDash app, offering consumers convenient access to thousands of Tractor Supply items including home improvement tools, firewood, and poultry feed.

Source:

Over the course of the next 15 months post-closing, the stores retained by Tractor Supply will be remodeled to the Tractor Supply brand. The Company is raising its outlook for store growth opportunities to 2,800 locations, an increase of 100 stores. 

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“I want to congratulate Tractor Supply on the groundbreaking of their tenth distribution center,” said Governor Asa Hutchinson. “Arkansans throughout the state know the value our farm families provide, and Tractor Supply is highly regarded as a leading partner in meeting the needs of our farm families.”

• Net Sales Increased 8.4%; Comparable Store Sales Increased 5.5%
• Company Raises Fiscal 2022 Financial Outlook to Reflect Outperformance in the First Half of the Year

Net sales for the second quarter of 2022 increased 8.4% to $3.90 billion from $3.60 billion in the second quarter of 2021. Comparable store sales increased 5.5%, as compared to an increase of 10.5% in the prior year’s second quarter. Comparable store sales for the second quarter of 2022 were driven by comparable average ticket growth of 7.5%, offset by a decrease in comparable average transaction count of 2.0%. Comparable store sales growth reflects continued strength in every day, needs-based merchandise, including consumable, usable and edible (“C.U.E.”) products and year-round product categories.

 Comparable store sales increased 5.2%, as compared to an increase of 38.6% in the prior year’s first quarter. Comparable store sales for the first quarter of 2022 were driven by comparable average ticket growth of 6.7% and a decline in comparable average transaction count of 1.4%. 

Gross profit increased 7.4% to $1.06 billion from $983.8 million in the prior year’s first quarter, and gross margin decreased 29 basis points to 34.9% from 35.2% in the prior year’s first quarter. 

The company reported that price management actions and other margin driving initiatives were able to offset the majority of the impact from significant product cost inflation pressures and higher transportation costs.  s

The growth plan arrives amid news that net sales for the retailer grew by 15.3 percent for the quarter and 19.9 percent for the year that ended Dec. 25.

Online sales experienced double-digit growth for the 38th consecutive quarter.

Net income increased by 62.9 percent for the quarter and 33.1 percent for the year.

“Today, our business is substantially stronger than before the pandemic,” said President Hal Lawton. “Our resilient and differentiated business model has allowed us to capitalize on the structural consumer trends benefiting our business, and we believe we have a long growth runway ahead of us.”

Tractor Supply began in 1938 as a mail-order business and opened its first store in 1939 in Minot, N.D. In 2011, 72 years later, it opened its 1,000th store in South Hill, Va. The retailer added its second thousand stores over the following decade and opened No. 2,000 in White House, Tenn., at the end of 2021.
Source: Business Wire

July 19, 2021 07:05 AM Eastern Daylight Time

BRENTWOOD, Tenn.–()–Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today reported financial results for its second quarter ended June 26, 2021.

“Thank you to the more than 45,000 Tractor Supply Team Members who have done an amazing job of navigating through the pandemic. I am extremely proud of their relentless dedication to each other and our customers.”

“For both the second quarter and first half of the year, the Tractor Supply team delivered exceptionally strong performance as we successfully managed through challenging comparisons from the prior year,” said , Tractor Supply’s President and Chief Executive Officer. “Thank you to the more than 45,000 Tractor Supply Team Members who have done an amazing job of navigating through the pandemic. I am extremely proud of their relentless dedication to each other and our customers.”

Lawton continued, “As the country reopens, the Out Here lifestyle remains incredibly relevant as we continue to grow our active customer count and retain last year’s new and reengaged customers. We are increasing our earnings guidance given our strong results and the outlook for our customer trends and ongoing market share gains. The team is executing at a high level and advancing our Life Out Here Strategy while navigating the cost pressures we are experiencing. With a resilient business model, ongoing market share growth and strategic investments to transform the Company, we are excited about the significant opportunities ahead of us and remain committed to disciplined financial returns and sustained profitable growth.”

Second Quarter 2021 Results

Net sales for the second quarter 2021 increased 13.4% to $3.60 billion from $3.18 billion in the second quarter of 2020. Comparable store sales for the second quarter 2021 increased 10.5% driven by comparable transaction count and comparable average ticket growth of 4.5% and 6.0%, respectively. The increase in comparable store sales was driven by robust growth in everyday merchandise, including consumable, usable and edible (“C.U.E.”) products, and solid demand for spring and summer seasonal categories. All geographic regions and major merchandising categories of the Company reported comparable store sales growth. In addition, the Company experienced a record sales quarter in its e-commerce business.

Gross profit increased 11.3% to $1.29 billion from $1.16 billion in the second quarter of 2020, and gross margin decreased 67 basis points to 35.8% from 36.4% in the prior year’s second quarter. The decrease in gross margin as a percent of net sales was primarily driven by higher transportation costs, the initial impact from the relaunch of the Company’s Neighbor’s Club loyalty program and product mix shift towards C.U.E. Partially offsetting the decrease was the Company’s price management program.

Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 13.1% to $801.6 million from $709.1 million in the second quarter of 2020. As a percent of net sales, SG&A expenses were 22.3%, a 6 basis point improvement over the prior year’s second quarter. The improvement in SG&A as a percent of net sales was primarily attributable to lower COVID-19 pandemic response costs and decreased incentive compensation as well as leverage in occupancy and other fixed costs from the increase in comparable store sales. The leverage from these SG&A expenses was partially offset by higher wage rates, additional store labor hours and investments in the Company’s strategic initiatives.

Operating income for the second quarter of 2021 increased 8.5% to $485.9 million compared to $447.7 million in the second quarter of 2020.

The effective income tax rate was 22.8% compared to 22.9% in the prior year’s second quarter.

Net income increased 9.3% to $370.0 million from $338.7 million in the second quarter of 2020, and diluted earnings per share increased 10.0% to $3.19 from $2.90 in the prior year’s second quarter.

The Company repurchased approximately 1.1 million shares of its common stock for $203.3 million and paid quarterly cash dividends totaling $59.9 million, returning $263.2 million of capital to shareholders in the second quarter of 2021.

During the second quarter of 2021, the Company opened 11 new Tractor Supply stores and one new Petsense store and closed four Petsense stores.

Fiscal 2021 Outlook

The Company is updating its fiscal 2021 financial guidance to reflect its strong performance in the first half of 2021 and based on what it can reasonably predict at this time. Given the nature of the COVID-19 pandemic on the macro economy and the consumer, the Company continues to plan for fiscal 2021 based on a range of potential outcomes.

For fiscal 2021, the Company now expects the following:

The Company’s diluted EPS guidance assumes an estimated effective income tax rate of 22.1% to 22.4%.

Capital expenditures are now expected to be in the range of $500 million to $600 million, an increase from the Company’s prior forecast of $450 million to $550 million. The increase in the capital expenditures principally reflects construction cost increases and incremental investments in technology. Anticipated capital expenditures include new store growth of approximately 80 new Tractor Supply and 10 new Petsense store openings.

Share repurchases for fiscal 2021 are expected to be approximately $700 million to $800 million.

The Company continues to have a strong liquidity position with current cash and cash equivalents of approximately $1.41 billion and no amounts drawn on its $500 million revolving credit facility as of June 26, 2021.

The Company’s outlook for fiscal 2021 does not contemplate the impact of the pending acquisition of Orscheln Farm and Home previously announced on February 17, 2021. The acquisition is conditioned on the receipt of regulatory clearance and satisfactory completion of customary closing conditions.

BRENTWOOD, Tenn.–()–Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today announced that it has entered into an agreement to acquire Orscheln Farm and Home in an all-cash transaction for approximately $297 million, net of acquired estimated future tax benefits of $23 million. Orscheln Farm and Home operates 167 stores located in 11 states: Missouri, Kansas, Nebraska, Iowa, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois and Ohio. The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions.

“This is an exciting step for Tractor Supply as we expand our footprint in the Midwest with the high-quality assets of Orscheln Farm and Home. We have always had great respect for Barry Orscheln and the team at Orscheln Farm and Home for the strong connection they have with customers in the communities they serve, along with their industry knowledge and capabilities. With our shared values and passion for the Out Here lifestyle, we are honored to welcome Orscheln Farm and Home to the Tractor Supply family. We look forward to bringing together our highly complementary cultures and teams to realize the long-term value and benefits that we expect this acquisition to deliver,” said Hal Lawton, Tractor Supply’s President and Chief Executive Officer.

Barry Orscheln, Chairman and CEO of Orscheln Farm and Home, commented, “For more than 60 years, my family, our Orscheln Farm and Home employees and I have been committed to serving the needs of rural communities across the Midwest. I am very proud of all that we have accomplished over this time. I am confident that with Tractor Supply our stores will be well-positioned to continue Orscheln’s tradition of taking care of our customers and communities for the next phase of growth.”

Tractor Supply’s preliminary estimates indicate the acquisition will be immediately accretive to earnings per share upon closing. The earnings accretion is anticipated to grow over time as planned synergies are achieved. Tractor Supply intends to fund the acquisition through existing cash on hand.

For Tractor Supply, Goldman Sachs & Co. LLC is acting as financial advisor, and Bass, Berry & Sims PLC is acting as legal advisor. Fifth Third Securities is acting as financial advisor to Orscheln Farm and Home, while Stinson LLP is acting as legal advisor.

About Tractor Supply Company

Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, has been passionate about serving its unique niche, as a one-stop shop for recreational farmers, ranchers and all those who enjoy living the rural lifestyle, for more than 80 years. Tractor Supply offers an extensive mix of products necessary to care for home, land, pets and animals with a focus on product localization, exclusive brands and legendary customer service that addresses the needs of the Out Here lifestyle. With more than 42,000 Team Members, the Company leverages its physical store assets with digital capabilities to offer customers the convenience of purchasing products they need anytime, anywhere and any way they choose at the everyday low prices they deserve. At December 26, 2020, the Company operated 1,923 Tractor Supply stores in 49 states and an e-commerce website at .

Tractor Supply Company (NASDAQ: TSCO) today announced financial results for its fourth quarter and fiscal year ended December 26, 2020.

Net sales increased 27.2% to $10.62 billion in fiscal 2020 from $8.35 billion in fiscal 2019. Comparable store sales increased 23.1% versus a 2.7% increase in fiscal 2019. Gross profit increased 31.0% to $3.76 billion from $2.87 billion, and gross margin increased by 104 basis points to 35.4% from 34.4%.

• Company Achieves Record Sales and Earnings for Fiscal 2020
• Fourth Quarter Net Sales Increased 31.3%; Fourth Quarter Comparable Store Sales Increased 27.3%
• Fiscal Year Net Sales Increased 27.2%; Fiscal Year Comparable Store Sales Increased 23.1%
• Company Recorded Non-Cash Pre-Tax Impairment Charges of $74.1 million, or $0.49 per diluted share after-tax, related to the Petsense Business
• Fourth Quarter Diluted Earnings per Share (“EPS”) of $1.15 and Adjusted Diluted EPS of $1.64¹
• Fiscal Year 2020 Diluted EPS of $6.38 and Adjusted Diluted EPS of $6.87¹
• Company Provides Fiscal 2021 Diluted EPS Outlook of $6.50 to $6.90
• Board of Directors Increases Quarterly Dividend by 30% to $0.52 per share

“We are incredibly proud of all the Tractor Supply team achieved in 2020 including record sales and operating performance for the year. My thanks and appreciation go out to the team for their support of each other, our customers and our longstanding commitment to the rural lifestyle. Our team remained agile in a challenging operating environment as we experienced unprecedented demand and welcomed a record number of new and reengaged customers to Tractor Supply,” said Hal Lawton, Tractor Supply’s President and Chief Executive Officer. “The team has done an exemplary job operating the business at elevated rates in the midst of a global pandemic, all while laying the foundation for our Life Out Here Strategy. Going forward, we believe our resilient business model with a differentiated and loyal customer base, our strategic investments to capture growth opportunities and the strength of our balance sheet position us to capitalize on the momentum in our business in 2021 and beyond.”

Lawton continued, “The 30% increase in our quarterly dividend by the Board of Directors and our recently resumed share repurchase program reflect our strong earnings performance and robust cash flows in 2020 and confidence in our business, as well as our ongoing commitment to total shareholder return.”

Fourth Quarter 2020 Highlights

Net sales increased 31.3% to $2.88 billion in the fourth quarter of 2020 from $2.19 billion in the fourth quarter of 2019. Comparable store sales increased 27.3% versus an increase of 0.1% in the prior year’s fourth quarter. The COVID-19 pandemic continued to have a significant, positive impact on consumer demand in the fourth quarter of 2020 across all of the Company’s major product categories as customers focused on the care of their homes, land and animals. Comparable store sales for the fourth quarter 2020 were driven by comparable average transaction count and ticket growth of 14.3% and 13.0%, respectively. The comparable store sales results also reflect a strong demand for everyday merchandise, including consumable, usable and edible products, and robust growth for seasonal categories. All geographic regions of the Company had robust comparable store sales growth. In addition, the Company’s e-commerce sales experienced triple-digit percentage growth for the third consecutive quarter.

Gross profit increased 34.2% to $995.5 million from $741.8 million in the fourth quarter of 2019, and gross margin rate increased 75 basis points to 34.6% from 33.8% in the prior year’s fourth quarter. The increase in gross margin was primarily attributable to a lower depth and frequency of sales promotions and less clearance activity, partially offset by higher transportation costs as a percent of net sales.

Selling, general and administrative (SG&A) expenses, including depreciation and amortization and asset impairment, increased 47.1% to $811.1 million from $551.4 million in the fourth quarter of 2019. As a percent of net sales, SG&A expenses increased 302 basis points to 28.2% from 25.2% in the prior year’s fourth quarter. The fourth quarter of 2020 results include non-cash impairment charges for the Petsense business of $74.1 million due primarily to a strategic reassessment of the business and a decision to reduce the number of new store openings planned over the long term and, to a lesser extent, the impairment of long-lived assets at underperforming locations. On an adjusted basis excluding the impact of the discrete impairment charges, SG&A expenses increased 33.7% to $737.0 million, or 46 basis points to 25.6% as a percent of net sales for the fourth quarter of 2020. The increase in adjusted SG&A as a percent of net sales was primarily attributable to incremental costs related to the COVID-19 pandemic, increased incentive compensation due to record sales and profit performance in the quarter with the majority allocated to the store teams, and investments in strategic initiatives. Additional costs incurred due to the COVID-19 pandemic include appreciation bonuses to Team Members in the Company’s stores and distribution centers as well as additional labor hours and supply costs dedicated to cleaning and sanitation to enhance the health and safety of Team Members and customers.

The effective income tax rate was 23.0% compared to a rate of 22.3% in the prior year’s fourth quarter.

Net income was $135.9 million, or $1.15 per diluted share, compared to net income of $144.2 million, or $1.21 per diluted share, in the fourth quarter of 2019. On an adjusted basis, net income was $193.2 million, or $1.64 per diluted share, in the fourth quarter of 2020.

The Company opened 19 new Tractor Supply stores and three new Petsense stores and closed four Petsense stores in the fourth quarter of 2020.

Fiscal 2020 Results

Net sales increased 27.2% to $10.62 billion in fiscal 2020 from $8.35 billion in fiscal 2019. Comparable store sales increased 23.1% versus a 2.7% increase in fiscal 2019. Gross profit increased 31.0% to $3.76 billion from $2.87 billion, and gross margin increased by 104 basis points to 35.4% from 34.4%.

SG&A expenses, including depreciation and amortization and asset impairment, increased 29.9% to $2.76 billion, and as a percent of net sales, SG&A expenses increased to 26.0% compared to 25.5% in fiscal 2019. On an adjusted basis excluding the impact of the discrete impairment charges, SG&A expenses increased 26.4% to $2.69 billion, or 25.3% as a percent of net sales in fiscal 2020.

The effective income tax rate was 22.6% compared to a rate of 22.3% in fiscal 2019.

For fiscal 2020, net income was $749.0 million, or $6.38 per diluted share, compared to $562.4 million, or $4.66 per diluted share, in fiscal 2019. On an adjusted basis, net income was $806.2 million, or $6.87 per diluted share, for fiscal 2020.

The Company repurchased approximately 3.4 million shares of its common stock for $343.0 million and paid quarterly cash dividends totaling $174.6 million, returning $517.6 million of capital to shareholders in fiscal 2020.

During fiscal 2020, the Company opened 80 new Tractor Supply stores and nine new Petsense stores and closed one Tractor Supply store and seven Petsense stores.

Fiscal 2021 Outlook

The impact that the COVID-19 pandemic will have on the broader economy and the Company’s fiscal 2021 results remains uncertain. Given the nature of the COVID-19 pandemic on the macro economy and the consumer, the Company is planning for fiscal 2021 based on a range of potential outcomes. The Company is providing the following initial guidance for the results of operations expected for fiscal 2021:

The Company’s diluted EPS guidance assumes an estimated effective income tax rate of 22.5% to 22.8%.

Share repurchases for fiscal 2021 are expected to reduce diluted weighted average shares outstanding by one to two percent. Anticipated capital expenditures include new store growth of approximately 80 new Tractor Supply and 10 new Petsense store openings.

The Company continues to have a strong liquidity position with current cash and cash equivalents of approximately $1.34 billion and no amounts drawn on its $500 million revolving credit facility as of December 26, 2020.