Strong Q2 for Tractor Supply Company
Tractor Supply Company (TSC) reported second quarter 2021 net sales increased 13.4% to $3.6 billion from second quarter 2020 sales of about $3.2 billion.
Sales for the first six months of 2021 jumped 24.5% to $6.39 billion from $5.14 billion in the first six months of 2020.
Second quarter comp sales rose 10.5% driven by comparable transaction count and comparable average ticket growth of 4.5% and 6.0%, respectively. The increase in comparable store sales was driven by robust growth in everyday merchandise, including consumable, usable and edible (“C.U.E.”) products, and solid demand for spring and summer seasonal categories, Tractor Supply said.
Comparable store sales increased 21.2% as compared to an increase of 19.0% in the first six months of 2020.
The Brentwood, Tenn.-based farm and ranch lifestyle retailer posted a net income of $370 million for the quarter, rising 9.3% from a net income of $338.7 million the second quarter of 2020. Earnings for the first six months increased 30.5% to $551.4 million from $422.5 million in the first six months of last year.
During the second quarter of 2021, TSC opened 11 new Tractor Supply stores and one new Petsense store and closed four Petsense stores. For the first six months of the year, TSC opened 32 new Tractor Supply stores and three new Petsense stores and closed 11 Petsense stores.
As of June 26, 2021, TSC operated 1,955 Tractor Supply stores in 49 states along with 174 Petsense stores in 23 states.
While TSC did not reveal specific numbers, the company said the second quarter was its largest e-commerce sales quarter in company history. TSC noted that its Neighbor’s Club loyalty program, which received major upgrades this year, now has more than 21 million members.
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The Bottom Line: Tractor Supply earnings rise 9.3% to $370 million for the quarter as sales climb 13.4% to $3.6 billion.
What the CEO said: “For both the second quarter and first half of the year, the Tractor Supply team delivered exceptionally strong performance as we successfully managed through challenging comparisons from the prior year,” said Hal Lawton, Tractor Supply president and CEO. “Thank you to the more than 45,000 Tractor Supply Team Members who have done an amazing job of navigating through the pandemic. I am extremely proud of their relentless dedication to each other and our customers.”
“As the country reopens, the Out Here lifestyle remains incredibly relevant as we continue to grow our active customer count and retain last year’s new and reengaged customers.”
Company info: The full second quarter 2021 financial report from Tractor Supply Company is available here.