Out in Tractor Supply’s rural markets, consumers responded to the company’s second-quarter initiatives, providing it with a beat on a Wall Street earnings estimate and a comparable store sales gain in the double digits.
Net income was $370 million, or $3.19 per diluted share, versus $338.7 million, or $2.90 per diluted share, in the year-prior quarter.
Tractor Supply’s net income for the period outstripped a MarketBeat-published analyst average estimate of $2.94.
Second-quarter comparable store sales increased 10.5%, according to Tractor Supply, with comparable transaction count and comparable average ticket growth of 4.5% and 6%, respectively. Net sales gained 13.4% to $3.6 billion versus the 2020 second quarter while operating income grew 8.5% to $485.9 million year over year in the period.
Growth in everyday merchandise, including consumable, usable and edible products, and solid demand for spring and summer seasonal categories drove the comp increase, Tractor Supply reported. All of the company’s geographic regions and major merchandising categories enjoyed comp gains versus the year-past quarter. And the company experienced a record sales quarter in its e-commerce business, it added.
“For both the second quarter and first half of the year, the Tractor Supply team delivered an exceptionally strong performance as we successfully managed through challenging comparisons from the prior year,” said Hal Lawton, Tractor Supply’s president and CEO, said in announcing the financial results. “As the country reopens, the Out Here lifestyle remains incredibly relevant as we continue to grow our active customer count and retain last year’s new and re-engaged customers. We are increasing our earnings guidance given our strong results and the outlook for our customer trends and ongoing market share gains. The team is executing at a high level and advancing our Life Out Here Strategy while navigating the cost pressures we are experiencing. With a resilient business model, ongoing market share growth and strategic investments to transform the company, we are excited about the significant opportunities ahead of us and remain committed to disciplined financial returns and sustained profitable growth.”
In the second quarter, Tractor Supply opened 11 new namesake stores. It also opened one new Petsense store and closed four.
