Q2 comps slip at Tractor Supply
Brentwood, Tennessee-based Tractor Supply reported comparable store sales of negative 0.5 percent in the second quarter, as total sales increased 1.5 percent to $4.25 billion.
Riding lawnmowers, recreational-vehicle-related products and sporting goods performed well, as did live goods, said CEO Hal Lawton. The retailer reported strength in seasonal categories and big ticket items.
Net income increased 0.9% to $425.2 million from $421.2 million in the prior-year quarter. Earnings per share reached $3.93, up 2.6 percent from the second quarter of 2023.
The company said comparable store sales results reflect strength in seasonal merchandise including big ticket, partially offset by declines in year-round discretionary categories. As expected, consumable, usable and edible products were modestly negative with positive unit growth offset by average unit price pressure.
Consumer spending landscape continues to be rather choppy, the CEO said. “The ongoing shift of spending from goods to services continues to be a headwind for our business,” Lawton said.
The company is updating its full-year guidance based on its year-to-date performance.
Net sales are now expected at The new forecast is for $14.8 billion to $15.0 billion.
The previous forecast was $14.7 billion to $15.1 billion.
Neighbor’s Club
Tractor Supply’s loyalty program, Neighbor’s Club, reached 36 million members, the company said. Over the last 12 months, the program added more than 5 million members.
Comp-store sales are expected at negative 0.5 percent to positive 1.0 percent, updated from negative 1.0 percent to. Positive 1.5 percent.
Net income expectations for the full year are now $1.08 billion to $1.12 billion. That’s updated from $1.06 billion to $1.13 billion.
Lawton kicked off the second-quarter earnings call with thank you to the Tractor Supply IT team, who handled the global CrowdStrike cybersecurity-related outage “with no material impact.”
“At the halfway point of the year, we have made significant progress on our Life Out Here strategy,” Lawton said. “We continue to create more separation between us and our competition.”
