Tractor Supply CEO Hal Lawton said the retailer is well-positioned to navigate “uncertain environments” as the company reported a year-over-year slip in comparable sales and earnings slipped in its first quarter.
Tractor Supply also announced it broke ground on an 865,000-square-foot distribution center in Nampa, Idaho.
Net income was $179.4 million, or 34 cents per diluted share, versus $198.2 million, or 37 cents per share, in the year-previous period, the company reported.
Tractor Supply came up short of a Zacks Investment Research analyst consensus earnings-per-diluted-share estimate of 37 cents and a revenue estimate of $3.55 billion.
Net sales increased to $3.47 billion from $3.39 billion from the year-earlier quarter. New store openings and the contribution from Allivet, an online pet and animal pharmacy Tractor Supply acquired last year, drove net sales, partially offset by a decrease in comparable store sales, down 0.9% year over year. Average transaction count increased by 2.1% but average ticket slipped 2.9% versus the year past. Average transaction growth reflected strength in year-’round categories including consumable, usable and edible products, as well as winter seasonal merchandise, the company noted, but weakness in spring seasonal goods including related big ticket categories weighed against the gains. Operating income was $249.1 million versus $263.1 million in the year-prior period.
“As the year unfolds amid increasing volatility, our conviction in Tractor Supply’s resilient and durable business model remains strong,” said Tractor Supply President and CEO Lawton. “We have a long track record of navigating uncertain environments, and we believe we are well-positioned to do so once again. Tractor Supply is uniquely differentiated by our needs-based product categories, our predominantly U.S.-sourced assortment, deep and trusted vendor relationships and a nimble, scalable supply chain.”
The new distribution center in Idaho will be the 11th such facility in the Tractor Supply logistics network and represents an initial investment of some $225 million in the Canyon County area, the company stated. As of December 28, 2024, Tractor Supply operated 2,296 namesake stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states.
