Tractor Supply Q1 sales rise 9%; to open 80 stores in 2023
Tractor Supply Company reported an increase in first-quarter sales and confirmed its yearly outlook amid continued share gains.
The country’s largest rural lifestyle retailer also said it plans to open approximately 70 Tractor Supply stores in 2023, and also complete the conversion of its acquired Orscheln Farm and Home locations to Tractor Supply and continue its “project fusion” store remodels and garden center transformations.
In addition, the retailer expects to open 10 to 15 new Petsense by Tractor Supply stores. (The company opened 17 new Tractor Supply locations and three new Petsense by Tractor Supply stores in the first quarter of 2023.)
Tractor Supply’s net income decreased 2.2% to $183.1 million in the quarter ended April 1, from $187.2 million in the year-ago quarter. Diluted earnings per share was $1.65 in the first quarter of both 2023 and 2022.
Net sales increased 9.1% to $3.30 billion, driven by positive sales contributions from the acquisition of Orscheln Farm and Home, new store openings and growth in comparable store sales.
Comparable store sales increased 2.1%, driven by comparable average ticket growth of 2.8% and a comparable average transaction count decrease of 0.7%. Comparable store sales growth reflects continued strength in core year-round merchandise, including consumable, usable and edible products, offset by declines for seasonal goods.
The strongest regions for comparable store sales growth were the South Atlantic, Texas/Oklahoma and Far West where there was less negative impact from seasonal shifts, the company stated. The strength of these regions was offset by pressure in the Northeast and Mid-West regions due to a mild January combined with a delay in the start to the spring selling season.
“Our comparable store sales were below our expectations, primarily due to less favorable spring weather trends,” said president and CEO Hal Lawton.
Looking ahead, Tractor Supply expects full-year 2023 sales to be in the range of $15 billion to $15.3 billion. It expects comp store sales growth to range between 3.5% and 5.5%.
“We remain confident in our outlook given our continued share gains, the results of our year-round product categories and the scaling of our strategic investments,” Lawton said. “We believe that our customer remains healthy, as evidenced by positive comparable transactions in our last two months, and that we continue to gain market share.
The CEO noted that the company has seen improved sales trends as spring has arrived across its markets.
“With the majority of the year ahead of us and given our track record of nimbly managing the business, we are confirming our financial outlook for fiscal 2023,” he added. “Tractor Supply’s needs-based, demand-driven business model has stood the test of time with consistent and sustainable growth.”
As of April 1, 2023, Tractor Supply operated 2,164 namesake stores in 49 states, including 81 stores acquired from Orscheln Farm and Home in 2022 that will be rebranded to Tractor Supply by the end of 2023.
Tractor Supply Company also owns and operates Petsense by Tractor Supply, a small-box pet specialty supply retailer. As of April 1, 2023, the company operated 189 Petsense by Tractor Supply stores in 23 states.