Tractor Supply finds ways to profit

The largest retail farm and ranch chain in the country posted third-quarter net income of $22 million, up 38.5% from the same quarter last year. Sales increased 1.9% to $747.7 million.

Same-store sales fell 5.1% during the quarter, due in part to weak demand for seasonal big-ticket items, the company said.

All-in-all, CEO Jim Wright described the three-month results as a strong performance in a tough economy.

"Our core consumable, usable and edible categories continued to drive footsteps to the store, and we achieved positive transaction count comps for the sixth consecutive quarter," he said. "We continue to maintain disciplined expense control without sacrificing our in-store shopping experience or customer service levels."

The chain's execution was particularly strong, he added, when considering the prior-year quarter benefited from spending aided by landfall hurricanes in Louisiana and Texas.

In the last few weeks, Wright said the stores have added national brands in the large animal feed category -- Purina and Nutrena. "Early response to these prominent brands has been positive," he said. "We believe that adding nationally recognized best-selling feed brands for the first time will drive category expansion and attract new customers."

As of Sept. 26, 2009, Tractor Supply operated 912 stores in 44 states. The company ranked 11th on the 2009 Home Channel News Top 500 Scoreboard.

The company expects to open 76 stores in 2009. It has opened 58 so far. And while a hiring "frost" is in place -- as opposed to a "freeze," Wright said -- the company has created 1,600 jobs since the beginning of 2008.

"Although we slowed store expansion , we remain a growth company," Wright said.