Tractor Supply beats on earnings, sales

7/26/2018
Tractor Supply Company plowed through the second quarter, with sales and earnings that beat Wall Street estimates.

The Brentwood, Tennessee, home improvement and farm and ranch specialty retailer reported that its net income for the second quarter increased 29% to $207.3 million from a net income $160.6 million for the same period last year. Net sales increased 9.7% to $2.21 billion from second quarter 2017 net sales of $2.02 billion.

Comparable store sales increased 5.6% during the second quarter compared to 2.2% during the same period a year ago. Tractor Supply also said its comparable average ticket rose 3.7% for the quarter.

The company said the increase in comparable store sales was primarily driven by broad-based strength in everyday merchandise, along with strong growth across spring and summer seasonal categories. All merchandise categories delivered increased comparable store sales, as did all geographic regions.

“We delivered a solid second quarter with broad-based strength across our merchandise categories and geographies. Our 5.6% comparable store sales increase was driven by continued execution of our ONETractor strategy and merchandising initiatives that drove both average ticket and transaction count increases for the quarter,” said Tractor Supply CEO Greg Sandfort.

“Even with a delayed start to the spring season, we were able to capitalize on the selling season for many spring products as we managed our inventories effectively,” Sandfort said.

During the quarter, Tractor Supply opened 25 new Tractor Supply stores and three new Petsense stores and closed one Petsense store.

For the first six months of the year, Tractor Supply’s net sales rose 8.8% to $3.90 billion from $3.58 billion in the first six months of 2017. Comparable store sales increased 4.7% for the six-month period.

The retailer’s net income for the first half of 2018 increased 26.1% to $278.7 million from $221.0 million.

As of June 30, Tractor Supply operated 1,725 Tractor Supply stores in 49 states and 174 Petsense stores in 27 states.
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