Tractor Supply Q2 income up, comp-sales down
Tractor Supply Company reported a mixed second quarter with better-than-expected earnings but sales that missed Street estimates.
The nation’s largest rural lifestyle retailer said that its net income increased 0.9% to $425.2 million, or $3.93 a share, for the quarter ended June 29, up from $421.2 million, or $3.83 a share, in the year-ago period. Analysts had expected earningsa of $3.82 per share.
Net sales edged up 1.5% to $4.247 billion, missing estimates of $4.28 billion. Same-store sales fell 0.5%, driven by a comparable average transaction count decline of 0.6% which was partially offset by a comparable average ticket increase of 0.1%.
“Comparable store sales results reflected strength in seasonal merchandise including big ticket, partially offset by declines in year-round discretionary categories,” the company said. “As expected, consumable, usable and edible products were modestly negative with positive unit growth offset by average unit price pressure.”
The company opened 21 Tractor Supply stores during the quarter and three new Petsense by Tractor Supply stores. Capital plans for the year include opening 80 Tractor Supply stores (up from 70 in 2023) and 10 to 15 new Petsense stores as well as continuing its “Project Fusion” remodels and garden center revamps.
“We are pleased with our second quarter EPS results that were in line with our outlook,” said CEO Hal Lawton. “We are confident that we have the right plans in place to win with our customers given the strength of our second half operational initiatives.”
Tractor Supply repurchased approximately 0.5 million shares of its common stock for $139.2 million and paid quarterly cash dividends totaling $118.5 million, returning a total of $257.7 million of capital to shareholders in the second quarter of 2024.
The retailer tightened its full-year guidance, forecasting sales ranging from $14.8 billion to $15.0 billion, compared with its prior guidance of $14.7 billion to $15.1 billion. Same-store sales are expected to range from down 0.5% to up 1%, compared with prior guidance of down 1% to up 1.5%. It expects EPS to range from $10.00 to $10.40, compared with prior guidance of $9.85 to $10.50.
As of June 29, 2024, the company operated 2,254 Tractor Supply stores in 49 states and 205 Petsense by Tractor Supply stores in 23 states.
