Tractor Supply reports 3Q comps growth

BRENTWOOD, Tenn. Tractor Supply Co. announced that sales for the third quarter 2009 increased 1.9% to $747.7 million from $733.9 million in the third quarter of 2008. Same-store sales decreased 5.1% compared with a same-store sales increase of 6.2% in the third quarter of 2008.

The company said it anticipates that net income for the third quarter will be approximately $21.1 million to $22.2 million, or 58 cents to 60 cents per diluted share, compared to $15.9 million, or 43 cents per diluted share, in the prior year's third quarter.

Jim Wright, chairman and CEO, stated, "We are pleased that we will achieve higher-than-expected net income for the third quarter. Our team did an outstanding job delivering gross margin improvement and strong earnings performance by managing markdowns, inventories and expenses effectively. Additionally, we reduced year-over-year per-store inventory levels for the eighth consecutive quarter."

Based on the company's performance in the third quarter of 2009, the company has raised its expectations for full year net income to a range of $2.88 to $2.98 per diluted share compared to its previous guidance of $2.78 to $2.92 per diluted share. Tractor Supply now anticipates annual net sales will be approximately $3.17 billion to $3.2 billion. Same-store sales for the year are expected to decrease approximately 1% to 2%.

Wright concluded, "As we look to the remainder of the year, we have confidence that our strategy will continue to serve us well and enable us to grow our top and bottom line. While we are cautious as to how the consumer will spend during the upcoming holiday season, we remain focused on executing consistently and positioning our business to win in the current environment and beyond."