Despite lower revenue than expected, Tractor Supply beat a Wall Street earnings estimate in the third quarter.
Tractor Supply posted a net income of $255 million, or $2.33 per diluted share, versus $234.1 million, or $2.10 per diluted share, in the year-prior quarter.
A third-quarter analyst consensus estimate published by Yahoo Finance called for diluted earnings per share of $2.29 and revenues of $3.47 billion.
Comparable store sales decreased 0.4% in the quarter year over year, the company reported, as comparable average ticket declined 0.3% and a comparable average transaction count was flat. Tractor Supply noted comp performance reflects continued strength in core year-around merchandise, including consumable, usable and edible products, which significantly outpaced the chain average. The performance in those categories, Tractor Supply maintained, largely offset declines for seasonal goods and big-ticket items.
Net sales for the quarter of 2023 advanced to $3.41 billion from $3.27 billion in the year-earlier quarter. Contributions from the acquisition of Orscheln Farm and Home and new store openings drove the increase in net sales, Tractor Supply pointed out. Operating income increased to $340.9 million from $306.4 million in the year-previous quarter.
“We delivered solid growth in both net sales and earnings in the third quarter, although our sales performance was softer than our expectations,” said Hal Lawton, Tractor Supply president and CEO. “Given this environment, we have updated our outlook for the year to reflect continued unfavorable seasonal category performance and discerning consumer spending. Our consistent market share expansion and positive customer trends underscore the enduring strength of our business. We are confident in our ability to navigate in the near term and remain as excited as ever about our bright future.”
