Despite the weather’s influence on seasonal segments, Tractor Supply Company reported that net sales and income increased in its second quarter. In addition, the company’s chief financial officer plans to retire.
Net sales for the second quarter of 2016 ended June 25 increased 4.5% to $1.85 billion from $1.77 billion in the second quarter of 2015. Comparable store sales decreased 0.5% versus a 5.6% increase in the prior year’s second quarter. Comparable average ticket decreased 1.9% and comparable store transaction counts increased 1.5%. In the quarter, comparable store sales were negatively impacted by a decline in sales of big ticket categories.
Net income increased 2% to $156.4 million from $153.3 million and diluted earnings per share increased 3.6% to $1.16 from $1.12 in the second quarter of the prior year.
Greg Sandfort, Tractor Supply CEO, stated, “While it’s our job to manage the business through changes in weather and other external factors, the extreme weather patterns in the first two months of the quarter simply proved to be too much to overcome in the more seasonal segments of our business. We also do not anticipate that a significant shift in sales will come into the third quarter. We have become a bit more cautious in our outlook for the remainder of the year, although last year’s comparable sales comparisons are more favorable in the second half.”
He added, “Tractor Supply will continue to invest in our business to drive sales, shorten our supply chain timeline and increase our overall productivity and profitability. We are continuing our test and learn process on the merchandise side, along with implementing an improved allocation system, expanding our new customer loyalty program pilot, growing our store mobile point of sale test and conducting a comprehensive distribution center network analysis.”
In addition, the company also said that Anthony Crudele plans to retire from his position as evp/chief financial officer and treasurer during the first quarter of fiscal 2017. Kurt Barton, the company’s svp/corporate controller, will succeed Crudele as CFO.
The company opened 22 new stores and closed one store in the second quarter, and operates 1,542 stores in 49 states.