Tractor Supply reports Q2 sales up

Tractor Supply has reported net income for the second quarter ended June 27, 2009, increased 26% to $54.8 million from $43.4 million in the prior year's second quarter.

Sales for the quarter increased 5.4% to $946.5 million from $898.3 million in the year-ago period. Same-store sales decreased 2.7% compared with an increase of 3.4% in the prior year's second quarter. This decline was primarily due to softness in sales of seasonal big-ticket and discretionary merchandise, which was partially offset by strong results in core consumable categories, including animal and pet-related products.

The company opened 13 new stores in the quarter, compared with 23 in the same period last year.

"We are pleased with our success in driving strong operating performance, which allowed us to achieve higher than expected net income during the quarter,” said Jim Wright, chairman and CEO. “As we previously reported, our team is highly focused on expanding gross profit net of advertising expense through our refined marketing program and other cost management initiatives."

Net income for the first six months of 2009 was $55.2 million, up 34% from $41.3 million for the first six months of 2008.

For the first six months of 2009, net sales increased 8.3% to $1.60 billion. Same-store sales were flat compared with a decrease of 0.7% in the first half of 2008. In addition, Tractor Supply opened 41 new stores, closed one store and relocated one store, compared with 50 new store openings and no relocations or closures during the first six months of 2008.

For fiscal 2009, the company anticipates net sales to range from $3.15 billion to $3.25 billion, same-store sales to range from about flat to a decrease of 2.0%, and net income to range from $2.78 to $2.92 per diluted share.