Tractor Supply posts robust Q3
Tractor Supply Company reported a robust third quarter as the farm and ranch retailer exceeded its own expectations.
Sales for third quarter jumped 15.8% to $3.02 billion from sales of $2.61 billion in the third quarter of 2020.
Comparable store sales ascended 13.1% compared to an increase of 26.8% for the third quarter last year.
“The third quarter marks our sixth consecutive quarter of double-digit comparable store sales growth,” said Hal Lawton, president and CEO of Tractor Supply. “We are once again very pleased with the overall performance of our business, which exceeded our expectations. Our outstanding results are indicative of the hard work and dedication of the more than 45,000 Team Members of Tractor Supply who are successfully navigating the challenging and ever-changing external environment.”
During the third quarter the company’s comparable average ticket and comparable average transaction count increased by 9.5% and 3.6%.
Tractor Supply reported that all geographic regions and major merchandising categories had comparable store sales growth. In addition, the Company’s e-commerce sales experienced strong double-digit growth for the 37th consecutive quarter.
The company posted a net income of $224.4 million, rising 17.7% from a third quarter 2020 net income of $190.6 million.
The Brentwood, Tenn.-based retailer opened 12 new Tractor Supply stores and three new Petsense stores in the third quarter. For the first nine months of its fiscal year, the retailer opened 44 new Tractor Supply stores and six new Petsense stores while closing 11 Petsense stores.
Additionally, Tractor Supply has revised its financial forecast for 2021.
Tractor Supply now expects full-year sales of $12.6 billion compared to the previous forecast range of $12.3 to $12.1 billion. Comp sales for 2021 are now forecast to grow by 16% from the previously reported 11% to 13% growth.
The retailer also revised full-year profits to meet a range of $972 million to $985 million in net income compared to the prior forecast of $895 to $930 million.
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Bottom Line: Tractor Supply’s net income leaps 17.7% to $224.4 million as sales jump 15.8% to $3.02 billion.
What the CEO said: “As we advance our multiyear Life Out Here Strategy, we are beginning to realize the benefits from our strategic initiatives,” Hal Lawton said. “Despite unprecedented pressures across our supply chain, we are raising our outlook for fiscal 2021 and are on track for a record year of sales and earnings.”
Company info: Click here to read Tractor Supply Company’s full third quarter 2021 financial report.