Tractor Supply Q1 sales hit record $3.4B amid comp increase, new store openings

Tractor Supply is maintaining its full-year financial guidance after reporting increases in first-quarter earnings and sales.

The nation’s largest rural lifestyle retailer also confirmed its previously announced plans to open  approximately 80 new Tractor Supply stores in 2024 as well as to continue its “Project Fusion” store remodels and garden center transformations. 

In addition, the company will open its 10th distribution center and from 10 to 15 new Petsense by Tractor Supply stores.

Tractor Supply’s net income for the quarter ended March 30 rose 8.2% to $198.2 million from $183.1 million in the year-ago quarter. Earnings per share increased 10.9% to $1.83 compared to $1.65 in the first quarter of 2023. Analysts had had expected earnings of $1.71 a share.

Net sales rose 2.9% to a record $3.39 billion from $3.30 billion, with the increase driven by new store openings and growth in comparable store sales, which were up 1.1%. Analysts had expected sales of about $3.4 billion.

Comp sales were driven by a comparable average transaction count increase of 1.3% and a comparable average ticket decline of 0.2%. Comparable growth reflected strength in seasonal merchandise, partially offset by declines for year-round discretionary categories, the company said. Consumable, usable and edible products performed in line with the company’s overall comparable store sales increase.

“For the first quarter, Tractor Supply’s results were in line with our expectations with positive comparable store sales and robust earnings growth,” said president and CEO Hal Lawton. “We saw several positive signs in our business during the quarter, including ongoing market share gains, transaction growth and strength in big ticket sales. Most importantly, we believe that our customer base remains healthy and engaged We remain confident in our outlook for 2024 …. And committed to disciplined investments to capture the significant long-term growth opportunities in our market.”

In March, Tractor Supply announced the launch of its revamped three-tier Neighbor’s Club’s loyalty program, with new benefits that include the ability to earn rewards more quickly and streamlined tier qualification.

The retailer expects that its full-year net sales will range from $14.7 billion to $15.1 billion, with comp sales down 1% to up 1.5% and net income between $1.06 billion to $1.13 billion

As of March 30, 2024, the company operated 2,233 Tractor Supply stores in 49 states and 202 Petsense by Tractor Supply stores in 23 states.