Tractor Supply generated solid results in its third quarter, but it had mixed success satisfying Wall Street expectations as the company continued to advance its Life Out Here strategy.
Tractor Supply topped a MarketBeat-published analyst consensus earnings estimate of $2.07, but just missed the estimate for sales, which was $3.28 billion.
Comparable-store sales increased 5.7% after a 13.1% gain in the prior year’s third quarter, the company stated. Average ticket growth of 7%, partially offset by an average transaction count decline of 1.3%, drove the comp. Comp growth reflected continued strength in every day, needs-based merchandise, including consumables and year-round product categories.
Net sales increased 8.4% to $3.27 billion from the year-prior quarter, Tractor Supply reported. Operating income was $306.4 million versus $297.2 million in the period a year earlier.
In announcing the financial results, Hal Lawton, Tractor Supply president and CEO, said, “Tractor Supply delivered another record quarter as we continued to gain market share and extended our trend of consistent and stable net sales and earnings growth. In a dynamic environment, the underlying health of our business remains resilient given our needs-based, demand-driven product categories, best-in-class customer service and customer relationship management capabilities.”
He added that Tractor Supply’s lifestyle-oriented Life Out Here approach to the consumer “is gaining traction and widening our competitive moat, and we are excited about the many growth vectors ahead. We are honored to welcome the Orscheln Farm and Home team to Tractor Supply. With 25% of our store base now in our Project Fusion store format and over 260 Garden Centers operating across the chain, we are on track to achieve major milestones in the history of Tractor Supply with net sales exceeding $14 billion, more than 2,100 Tractor Supply stores and 50,000 dedicated team members. We believe we have the right strategies to manage through the near-term and to deliver long-term balanced growth and value creation.”
Tractor Supply opened 11 new namesake stores and two new Petsense by Tractor Supply stores in the third quarter.