Tractor Supply (TSCO) investor relations material

Opening remarks and business overview

• Over 2,400 stores and 200+ Petsense locations, with a resilient business model and strong customer loyalty.

• Significant investments in store remodels, digital capabilities, and Final Mile delivery have driven shareholder value.

• Recent quarters have seen softer performance due to weakness across core end markets: Farm & Ranch, pet, and home improvement.

• Immediate actions focus on re-accelerating the pet business and strengthening price-value competitiveness.

Operating environment and consumer trends

• The current environment is more cautious, with global conflict, higher fuel prices, and persistent inflation impacting consumers.

• Rural consumers are especially affected by fuel costs, driving 30% more than urban/suburban peers, with diesel prices adding $1,500/year in expenses.

• Customers remain engaged in needs-based categories, but discretionary spending is pressured.

• Focus remains on value, inventory management, and cost control to navigate macro pressures.

Market analysis and competitive positioning

• Total addressable market exceeds $200 billion, with 40% Farm & Ranch, 20% pet, and 20% home improvement.

• All major sectors are currently flat to negative, but the company continues to gain share, especially in Farm & Ranch.

• Competitive advantages include scale, supply chain, digital, and loyalty programs, with continued share gains in core markets.

• Pet sector is highly competitive and shifting toward services and online; recent acquisition of VIP Petcare expands service offerings.