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Tractor Supply Company turns in strong Q3

10/25/2018
Tractor Supply Company reported third quarter 2018 net sales increased 9.3% to $1.88 billion from net sales of $1.72 billion in the third quarter of 2017.

Comparable store sales grew 5.1%, during the quarter and included a 3.6% increase in the average ticket and 1.4% increase in comp transaction count.

The Brentwood, Tenn.-based dealer posted a net income of $116.8 million for the third quarter, up more than 27% from a net income of $91.9 million in the third quarter a year ago.

“Our 5.1% comparable store sales growth increase in the quarter was driven by continued execution of our ONETractor strategy that drove both average ticket and transaction count increases for the quarter,” said Greg Sandfort, CEO of Tractor Supply. “The team did a great job managing our product assortment, marketing events and store experience as we cycled a strong comparable store sales increase of 6.6% in the prior year’s third quarter.

The retailer said that its comp store sales were driven by broad-based strength in everyday merchandise, along with robust growth across spring and summer seasonal categories.  All merchandise categories delivered increased comparable store sales, as did all geographic regions.

Tractor Supply Company’s effective income tax rate was 21.5% for the quarter compared to 36.4% in the prior year’s third quarter. The was primarily related to the U.S. Tax Cuts and Jobs Act, the company said.

During the quarter, Tractor Supply opened 23 new stores and 7 new Petsense stores. For the first 9 months of the year, Tractor Supply has opened 63 new stores, 14 new Petsense stores, and closed 1 Petsense location.

As of the end of September 2018, Tractor Supply operated more than 1,748 stores in 49 states along with 181 Petsense stores in 27 states
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