Tractor Supply is hitting on all cylinders as it reported a healthy third quarter and continued to build on its “Life Out Here” growth and strategic initiatives.
Net sales for the third quarter 2020 increased to $2.61 billion from $1.98 billion in the third quarter of 2019. Comparable store sales increased 26.8%, as compared to an increase of 2.9% in the prior year’s third quarter. Comparable store sales were driven by comparable average transaction count and ticket growth of 14.3% and 12.5%, respectively. The comparable store sales results also reflect a strong demand for everyday merchandise, including consumable, usable and edible products, and robust growth for summer seasonal categories. In addition, the company’s e-commerce sales experienced triple-digit percentage growth.
Net income increased to $190.6 million from $122.1 million, and diluted earnings per share increased to $1.62 from $1.02 in the third quarter of 2019.
“We were very pleased with the overall performance of our business in the third quarter, which exceeded our expectations. My sincere thanks and appreciation go out to the more than 40,000 team members of Tractor Supply for their extraordinary efforts to serve our customers with dedication and passion in the midst of the ongoing challenges of the COVID-19 pandemic and multiple natural disasters in the quarter. Our fundamentals are strong as we continue to gain market share across existing, new and reengaged customers. We are focused on advancing our capabilities to better serve our customers as we look to emerge from the pandemic even stronger,” said Hal Lawton, Tractor Supply’s president and CEO.
“Our Life Out Here strategy builds on Tractor Supply’s strong heritage of being the dependable and convenient supplier for the Out Here Lifestyle. With a resilient business model and a differentiated and loyal customer base, we are moving at a fast pace to ensure Tractor Supply continues as a strong, relevant company for the future. Given our solid foundation along with our new strategic initiatives, we believe there are many growth opportunities ahead of us. The future is exciting as we look to drive sustainable growth and long-term value for our shareholders,” Lawton added.