Segment Reporting
The Company has one reportable segment which is the retail sale of products that support the rural lifestyle. The following table indicates the percentage of net sales represented by each major product category during fiscal 2025, 2024, and 2023:
 Percent of Net Sales
Fiscal Year
Product Category:202520242023
Livestock, Equine & Agriculture (a)
27 %26 %27 %
Companion Animal (b)
24 24 25 
Seasonal & Recreation (c)
24 24 22 
Truck, Tool & Hardware (d)
15 16 16 
Clothing, Gift & Décor (e)
10 10 10 
Total100 %100 %100 %
 
Note: Net sales by major product categories for prior periods have been reclassified to conform to the current year presentation.
(a)Includes livestock and equine feed & equipment, poultry, fencing, and sprayer & chemicals.
(b)Includes food, treats and equipment for dogs, cats, and other small animals as well as dog wellness.
(c)Includes tractor & rider, lawn & garden, bird feeding, power equipment, and other recreational products.
(d)Includes truck accessories, trailers, generators, lubricants, batteries, and hardware and tools.
(e)Includes clothing, footwear, toys, snacks, and decorative merchandise.

The accounting policies of the retail segment are the same as those described in the Summary of Significant Accounting Policies included in Note 1 - Significant Accounting Policies.

The Company’s Chief Operating Decision Maker (“CODM”) is identified as the President and Chief Executive Officer. The CODM assesses performance for the retail segment based on Net income as reported on the Company’s Consolidated Statements of Income. The CODM considers net income on a monthly basis when assessing performance of the segment. Net income is also used in competitive analysis by benchmarking to the Company’s competitors and establishing management’s compensation.
The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets.

Within the reportable segment, there are significant expense categories regularly provided to the CODM and included in the measure of the segment’s net income as shown below (in thousands):

 Fiscal Year
 202520242023
Net sales$15,524,046 $14,883,231 $14,555,741 
Less:
Cost of merchandise sold9,869,538 9,486,674 9,327,522 
Personnel expense (a)
2,061,227 1,939,494 1,883,710 
Depreciation and amortization494,011 447,162 393,049 
Other segment expenses (b)
1,631,881 1,542,369 1,472,548 
Interest expense, net
69,144 54,592 46,510 
Income tax expense
302,158 311,700 325,176 
Segment net income
$1,096,087 $1,101,240 $1,107,226 
Reconciliation of segment profit:   
Adjustments and reconciling items— — — 
Consolidated net income
$1,096,087 $1,101,240 $1,107,226 

(a) Personnel expense includes wages, salaries, and other forms of compensation related to personnel.
(b) Other segment expenses include occupancy expenses (including $675.0 million, $611.8 million, and $564.9 million, respectively, in rent expenses as disclosed in Note 6), advertising expenses, and other operating expenses within Selling, General, and Administrative expenses as described in Note 1.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 23, 2024
2022Feb 23, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 23, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.