Tractor Supply turns in another strong quarter; raises guidance

Tractor Supply Co. reported third-quarter profit and same-store sales that topped expectations and raised its full-year outlook.

The rural lifestyle retailer’s net income rose to $234.1 million, or $2.10 a share, for the quarter ended Sept. 24, from $224.4 million, or $1.95 a share, in the year-ago period. Analysts had expected earnings per share of $2.08.

Net sales rose 8.4% to $3.27 billion, just missing estimates of $3.28 billion. Same-store sales increased 5.7%, driven by average ticket growth of 7.0%, amid strength in consumable, usable and edible. Average transaction count fell 1.3%.

In September, Tractor Supply completed its acquisition of Orscheln Farm and Home.

“Tractor Supply delivered another record quarter as we continued to gain market share and extended our trend of consistent and stable net sales and earnings growth,” said president and CEO Hal Lawton. “In a dynamic environment, the underlying health of our business remains resilient given our needs-based, demand-driven product categories, best-in-class customer service and customer relationship management capabilities.”

With 25% of its store base now in its updated Project Fusion store format and over 260 garden centers operating across the chain, Lawston said the company is on track to achieve major milestones, including net sales exceeding $14 billion and more than 2,100 Tractor Supply stores.

“We believe we have the right strategies to manage through the near-term and to deliver long-term balanced growth and value creation,” he added.

The retailer opened 11 new Tractor Supply stores and two new Petsense by Tractor Supply stores in the quarter.

On September 24, 2022, the company operated 2,027 Tractor Supply stores in 49 states. (In October 2022, Tractor Supply acquired 81 stores from Orscheln Farm and Home that will be rebranded to Tractor Supply by the end of 2023). It also operated 180 Petsense by Tractor Supply stores in 23 states.   

[Read More: Tractor Supply rebrands Petsense, expands loyalty offering]

For 2022, Tractor Supply raised its guidance for earnings per share to $9.55 to $9.63 from $9.48 to $9.60, and for sales to $14.06 billion to $14.12 billion from $13.95 billion to $14.05 billion.