The first quarter was a happy one for Tractor Supply, which posted solid comparable sales gain after a big increase in the year-earlier period and beat Wall Street earnings and sales estimates.
The company topped a MarketBeat-published analyst consensus estimate for earnings of $1.42 and for sales of $2.92 billion.
Comparable sales gained 5.2% over an increase of 38.6% in the prior-year quarter, Tractor Supply reported. Comparable average ticket growth of 6.7% in the period year over year drove the overall comp partially offset by a 1.4% decline in comparable average transaction. Comp growth reflected robust demand for everyday merchandise, including consumable, usable and edible products, and strength in winter seasonal goods, Tractor Supply noted, partially offset by a slower start to the spring selling season. The company’s e-commerce sales experienced double-digit percentage growth for the 39th consecutive quarter, Tractor Supply maintained.
Net sales for the quarter advanced 8.3% to $3.02 billion from the year-before period. Operating income advanced to $244.3 million from $230.5 million, in the previous-year quarter
Tractor Supply plans to open 75 to 80 new namesake stores in fiscal 2022. As of March 26, the company operated 2,003 Tractor Supply stores in 49 of the United States, a consumer mobile app and an e-commerce website. It is awaiting regulatory clearance and the completion of customer closing conditions as regards its February 2021, acquisition of Orscheln Farm and Home, which operates 165 stores from the Midwest to Texas, according to that company’s website.
“The Tractor Supply team delivered strong results with another quarter of record sales and earnings despite having a difficult comparison from last year’s record sales, ongoing supply chain constraints and the Omicron surge,” said Hal Lawton, Tractor Supply’s president and CEO. “While we anticipate that we will continue to operate in a highly inflationary and volatile environment, we believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time. The strength of our business and the needs-based, demand-driven nature of our product categories complemented by our Life Out Here strategy give us confidence in our outlook and in our ability to successfully navigate the continuing challenges of the dynamic environment.”
