In the third quarter, Tractor Supply Co.’s net income and comparable sales declined, although total revenues pushed ahead.
Net income was $241.5 million, or $2.24 per diluted share, versus $255 million, or $2.33 per diluted share, in the year-past quarter. A one-time depreciation expense adjustment benefited the prior year’s diluted EPS by eight cents, the company pointed out.
An analyst consensus earnings per diluted share estimate published by Yahoo Finance came in at $2.24, while that for revenues was $3.49 billion.
Comparable store sales declined 0.2% in the quarter year over year, driven by a comp average transaction count increase of 0.3%, offset by a comp average ticket decrease of 0.5%. Comp results reflect continued strength in big-ticket categories, Tractor Supply noted, partially offset by declines in year-around discretionary segments.
Net sales increased to $3.47 billion from $3.41 billion from the year-prior quarter. New store openings drove the increase in net sales, the company maintained.
Operating income was $324.6 million versus $340.9 million in the year-earlier period.
In introducing the financial results, Hal Lawton, Tractor Supply president and CEO, said, “We delivered on our expectations for the third quarter amid a tepid retail sales environment while advancing our Life Out Here strategy. The fundamentals of our business remain strong with ongoing market share gains. With nearly 50% of our stores in Project Fusion layout and more than 550 garden centers, we continue to invest in our stores, supply chain and capabilities that build customer loyalty and elevate the standard for our sector. We remain very excited about the future for Tractor Supply to better serve our customers, capture market share, generate consistent, profitable growth and create ongoing long-term value for our shareholders. Today’s announcement of our acquisition of Allivet, a leading online pet pharmacy, is a great example of unlocking new opportunities for growth. We look forward to bringing pet Rx to our 37 million Neighbor’s Club members. ”
