In the fourth quarter, Tractor Supply posted solid numbers as the company continued pursuing its growth strategy and got a little help from Old Man Winter.
A Yahoo Finance-published analyst consensus estimate called for diluted earnings per share of $2.35 and sales of $3.88 billion.
Comparable store sales increased by 8.6%, driven by comparable average ticket growth of 6.3% and a comparable average transaction count gain of 2.3%. Comps reflect continued strength in everyday, needs-based merchandise, including consumable, usable and edible products, winter seasonal goods and year-round product categories, Tractor Supply noted. It estimated comps benefited by approximately two percentage points from the late December winter storm.
Net sales for the quarter were $4.01 billion versus $3.32 billion in the 2021 period, Tractor Supply indicated. The fourth quarter extra sales week represented 6.8 percentage points of the 20.7% sales growth. The company’s acquisition of Orscheln Farm and Home in October 2022 added $80 million to net sales in the fourth quarter. Operating income advanced 22.6% to $359.2 million in the period year over year. The transaction expenses and early integration costs recorded in the fourth quarter combined with the impact of the Orscheln Farm and Home acquisition came in relatively neutral to operating income and reduced the operating margin rate by approximately 20 basis points year over year.
In the fiscal year, net income grew to $1.09 billion from $997.1 million, and diluted EPS increased to $9.71 from $8.61 in the year before, Tractor Supply maintained. The benefit of the 53rd week contributed 16 cents to diluted EPS.
Comparable store sales increased by 6.3% versus fiscal 2021. Net sales increased 11.6% to $14.2 billion from the year previous. The extra sales week in fiscal 2022 represented 1.8 percentage points of the 11.6% sales growth. Operating income advanced 9.8% to $1.43 billion versus the year prior.
“Tractor Supply had another remarkable year in 2022 as we continued to gain market share and advance our strategic initiatives,” said Hal Lawton, Tractor Supply CEO, in announcing the financial results. “For the fourth quarter, while we had an incremental benefit from the late December winter storm, our underlying results were at the high end of our expectations. Our strong results throughout 2022 are directly attributable to the dedication of the more than 50,000 Tractor Supply Team Members who are passionate about Life Out Here. The team achieved significant milestones in the history of Tractor Supply including record sales and profitability and executed meaningful investments to enable future growth. In just over two years since introducing our Life Out Here strategy, we have executed Project Fusion in nearly 30% of our store base, built more than 300 garden centers, expanded our digital and supply chain capabilities and grown our Neighbor’s Club membership 47% to more than 28 million members. These investments are resonating with our customers, as we exited the year with strong traffic growth.”
