Tractor Supply Company reported its financial results for the fiscal three and nine months ended September 28, 2024, showing a modest increase in net sales and profitability compared to the previous fiscal period.

For the third quarter of fiscal 2024, net sales reached $3,468.2 million, a 1.6% increase from $3,412.0 million in the same quarter of fiscal 2023. In the nine-month period, net sales totaled $11,109.7 million, up 2.0% from $10,895.9 million year-over-year. The growth in sales was attributed to new store openings, which contributed $70.1 million in the third quarter and $219.1 million in the nine-month period.

Gross profit for the third quarter was $1,290.4 million, reflecting a 3.2% increase from $1,250.5 million in the prior year, with gross margin improving to 37.2% from 36.7%. However, operating income for the third quarter decreased to $324.6 million, down 4.8% from $340.9 million, resulting in an operating margin decline to 9.36% from 9.99%. Net income for the third quarter was $241.5 million, a decrease of 5.3% from $255.0 million, with diluted earnings per share falling to $2.24 from $2.33.

For the nine-month period, net income increased slightly to $864.8 million from $859.3 million, with diluted earnings per share rising to $8.00 from $7.81. The effective income tax rate for the nine months was 22.2%, down from 22.6% in the previous year, primarily due to reduced state income taxes.

The company’s cash and cash equivalents decreased significantly to $186.3 million as of September 28, 2024, from $421.7 million a year earlier. Total current assets increased to $3,483.2 million, while total liabilities rose to $2,345.7 million. Total stockholders’ equity improved to $2,288.8 million.

Strategically, Tractor Supply completed the acquisition of Orscheln Farm and Home in October 2022, converting 81 stores to its brand. Additionally, the company announced a definitive agreement to acquire Allivet, Inc., an online pet pharmacy, expected to close in the first quarter of fiscal 2025. The acquisition will be financed through the company's balance sheet.

The company also engaged in a sale-leaseback transaction for nine store locations, generating proceeds of $57.1 million and a gain of $34.9 million. As of September 28, 2024, Tractor Supply operated 2,475 retail stores, including 2,270 Tractor Supply stores and 205 Petsense by Tractor Supply stores.