As the rural lifestyle retailer responded to the coronavirus pandemic, Tractor Supply Company delivered solid results in the first quarter.
Net sales for the first quarter 2020 ended March 28 increased 7.5% to $1.96 billion from $1.82 billion in the first quarter of 2019. Comparable store sales increased 4.3% compared to an increase of 5% in the prior year’s first quarter. The comparable store sales results included an increase in comparable average ticket of 5.4% and a decrease in comparable transaction count of 1.1%. All geographic regions of the company had positive comparable store sales growth. The increase in comparable store sales was primarily driven by strength in consumable, usable and edible product categories, along with solid demand for spring seasonal categories. This growth was partially offset by softness in sales of cold weather seasonal merchandise and discretionary categories such as clothing and footwear.
Net income increased 9% to $83.8 million in the first quarter of 2020 from $76.8 million in the prior year’s first quarter, and diluted earnings per share increased 12.7% to $0.71 from $0.63 in the first quarter of 2019.
“Our year-to-date results underscore the importance of Tractor Supply as an essential, needs-based retailer. Tractor Supply delivered solid results in the first quarter, and second quarter sales are off to a strong start,” said Hal Lawton, Tractor Supply’s president and CEO. “I can’t thank the Tractor Supply team members enough for their dedication and support of each other and our customers. During these unprecedented times, I am incredibly proud of how the team is responding. The health and safety of our team members and customers will continue to be our highest priority. Across our business, we have taken more than 100 actions in response to the COVID-19 crisis with a focus on being preemptive and proactive. Tractor Supply has a strong and resilient business model, and we are confident we will emerge from the crisis even stronger.”