Tractor Supply Builds Solid Second Quarter

For the second quarter ended June 27, Tractor Supply Co. net income advanced to $153.3 million, or $1.12 per diluted share, versus $133.4 million, or 95 cents per diluted share, in the prior-year period, the company announced. Comparable store sales increased 5.6% versus last year’s second quarter.

Earnings per diluted share matched a Zack’s Investment Research analyst average estimate.

The company noted that comparable store sales rose due to a 4.2% gain in transaction count and a 1.3% increase in average ticket. A solid performance in seasonal items, including big ticket, and consumable, usable and edible products supported the comp gain.

Net sales advanced 11.9% to $1.77 billion, Tractor Supply reported.

“We had a solid second quarter and were pleased with the sales trends during the quarter,” said Greg Sandfort, Tractor Supply president and CEO. “Our merchandise, planning and store teams did an excellent job of managing assortments and driving strong sales and margins for the quarter. Once again, sales growth was broad based across all our merchandise categories and geographic regions, and we saw growth in both traffic and ticket. Continued execution of our price and inventory management strategies contributed to healthy increases in gross margin. Looking ahead, we believe our marketing and merchandising initiatives, along with our strategic investments in the business, have us well positioned for the late summer and early fall selling season.”

Tractor Supply opened 17 new stores and closed one in the second quarter. The company operates 1,438 stores in 49 states.