Tractor Supply turns a 1Q profit

BRENTWOOD, Tenn. Tractor Supply reported that first quarter net sales increased 12.8% to $650.2 million from $576.2 million in the prior year's first quarter. Same-store sales increased 4.2%, compared with a 6.5% decrease in the prior-year period. According to the company, this same-store sales increase was primarily driven by the company's core consumable categories, including animal and pet-related products.

Net income for the quarter was $0.5 million, or 1 cent per diluted share, compared to a net loss of $2 million, or 5 cents per diluted share, in the first quarter of the prior year.

Jim Wright, chairman and CEO, stated, "We are very pleased to have generated a double-digit top-line increase while improving gross margin and profitability in a challenging macro environment. We experienced a very strong increase in comp transaction count as customers continue to view Tractor Supply Company as a destination for serving their rural lifestyle needs. At the same time, we benefited from our disciplined operational management, as reflected by our inventory productivity improvements and expense leverage for the quarter."

The company confirmed its fiscal 2009 expectations for net sales to range from $3.2 billion to $3.3 billion, same-store sales to range from a decline of approximately 1.5% to an increase of approximately 1.5%, and net income to range from $2.58 to $2.74 per diluted share.