Tractor Supply CEO likes what he sees
Tractor Supply’s first quarter was a double-digit affair – sales up 10.2%, and net income up 16.6%. Comparable-store sales were up 4.9%.
All in all, CEO Greg Sandfort was pleased with the company’s results and execution in the three months. And for the 32nd consecutive quarter, the nation’s leading farm and ranch retailer posted a positive comparable transaction count.
Q1 net sales
2016: $1.47 billion
2015: $1.33 billion
% gain: 10.2%
Q1 net income
2016: $67.7 million
2015: $58.0 million
% gain: 16.6%
During his earnings call with investors, he gave a state-of-the-farm update on a variety of themes:
On Western expansion:
“We are learning. The West is a new market for us. We were in California and I think before we start expansion to the West I think the furthest we were, was probably Colorado. There is lot of room in between those particular states. But we are feeling very solid now that we understand those markets better. “
On the weather:
“We know the seasons and weather can influence the timing of when our customers buy certain products, but we also know it is our job to manage the business accordingly.”
On Chick Days.
“This year's Chicks Day event which was another success generating strong traffic driving sales and growing awareness regarding backyard poultry across a wide range of customers. The event features live chicks and ducklings along with all the necessary products for their care and maintenance. This is one of our most popular events of the year and positions Tractor Supply as an authority in the areas of animal care and sustainable living. “
On Lighting
“We are embarking on the largest store sustainability project to date with the retrofitting of the entire store base with new LED lighting in 2016 and 2017. Thus far we've converted one third of our stores plan for 2016 with LED lighting.”
On payment systems:
“We are also in the process of implementing the EMV chip and signature platform in our stores with completion expected by mid of this year.”
As of March 26, 2016, Tractor Supply Company operated 1,521 stores in 49 states.