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Tractor Supply Q2 sales, income rise; lifts guidance

Tractor Supply’s second-quarter net sales rose 8.4% to $3.90 billion.

Tractor Supply Co. maintained momentum in its second quarter, reporting top- and bottom-line increases.

The nation’s largest rural lifestyle retailer reported a net income of $396.5 million, or $3.53 per share, for the quarter ended June 25, up from $370.0 million, or $3.19 per share, in the year-ago period. Analysts had expected earnings per share of $3.51.

 Sales rose 8.5% to $3.903 billion from $3.602 billion last year, topping estimates of 3.892 billion. Same-store sales increased 5.5%, more than expected, driven by comparable average ticket growth of 7.5%, which was offset by a decrease in comparable average transaction count of 2.0%

“Tractor Supply had a strong second quarter that was in line with our expectations with record results on both sales and earnings,” said Hal Lawton, Tractor Supply’s president and CEO. “Given the strong performance in the first half of the year, ongoing consistency of our sales performance, visibility into our cost structure and the quality of our inventory, we are raising our financial outlook for the full year. We believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time, despite our outlook for a highly inflationary and volatile environment.”

For the year, Tractor Supply now expects sales of $13.95 billion to $14.05 billion, up from previous guidance for $13.6 billion to $13.8 billion, and earnings per share of $9.48 to $9.60, up from $9.20 to $9.50.

Capital expenditures for fiscal 2022 are currently forecasted to be in the range of $650 million to $700 million, including the opening of 70 to 80 new Tractor Supply stores and 10 new Petsense stores.

On June 25, 2022, the company operated 2,016 Tractor Supply stores in 49 states and 178 Petsense stores in 23 states.

[Read More: Tractor Supply unifies operations from supply chain to customer]

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