The COVID-19 pandemic prompted consumers to tap Tractor Supply for key needs both in-store and online, substantially augmenting second quarter sales and earnings.
Net income in the quarter, ended June 27, was $338.7 million, or $2.90 per diluted share, versus $219.2 million, or $1.80 per diluted share, in the period a year before. A Zacks Investment Research analyst consensus estimate for diluted earnings per share in the quarter was $2.62.
Comparable store sales gained 30.5% driven by a comparable transaction count that increased by 14.6% and a comparable average ticket that increased by 15.8% in the period year over year.
Net sales were $3.18 billion versus $2.35 billion in the quarter a year earlier. Operating income was $447.7 million versus $287.6 million in the year-prior period.
Tractor Supply noted that the COVID-19 pandemic boosted consumer demand across all of the company’s major product categories as customers focused on the care of their homes, land and animals. Unprecedented demand for spring and summer seasonal goods along with exceptional growth in everyday merchandise, including consumable, usable and edible products, drove comps higher, the company pointed out, and it added that all market regions enjoyed robust comparable store sales growth. Meanwhile, company e-commerce sales experienced triple-digit sales growth.
“In a highly dynamic environment, the Tractor Supply team delivered record results for the second quarter. At all levels, our team’s dedication to supporting each other and our customers is a true reflection of Tractor Supply’s mission and values in action,” said Hal Lawton, Tractor Supply president and CEO. “We believe our performance in the second quarter demonstrates the strength of our business and long-term growth potential. As we attract new customers and gain market share, now is the time for us to build on Tractor Supply’s Out Here lifestyle assortment and convenient shopping format. Over the last few months, we have successfully rolled out new technology and services such as curbside pickup, same day/next day delivery and our first-ever mobile app. We are excited today to announce our Field Activity Support Team and several new technology and service enhancements that are being implemented across the enterprise. Additionally, we are beginning work to transform our side lots and mature stores to improve space productivity, bring our latest merchandising strategies to life and advance our efforts to remain nationally strong while locally relevant. These strategic growth initiatives are guided by our commitment to disciplined financial returns and sustained profitable growth.”