Tractor Supply turns in record Q4
Tractor Supply Company continues to crank its engine when it comes to sales, expansion and profits.
The nation’s largest rural lifestyle retailer posted fourth quarter 2022 sales of $4.01 billion, rising 20.7% from fourth quarter 2021 sales of $3.32 billion.
The fourth quarter in 2022 included an extra sales week as part of Tractor Supply’s 53-week calendar in 2022, which represented 6.8% points of the 20.7% sales growth, the company said.
Comparable store sales increased 8.6% compared to an increase of 12.7% in the prior year’s fourth quarter. Comps were driven by comparable average ticket growth of 6.3% and comparable average transaction count increase of 2.3%.
Tractor Supply said comparable store sales growth reflects “continued strength in everyday, needs-based merchandise, including consumable, usable and edible (CUE) products, winter seasonal goods and year-round product categories.”
Additionally, Tractor Supply estimates comparable store sales in the quarter benefited by approximately two percentage points from the late December winter storm. The acquisition of Orscheln Farm and Home in October 2022 added approximately $80 million to net sales in the fourth quarter.
Sales for fiscal 2022 increased 11.6% to $14.20 billion from $12.73 billion in fiscal 2021. The fiscal year included an extra sales week as part of the company’s 53-week calendar in 2022, representing 1.8 percentage points of the 11.6% sales growth.
Comparable store sales increased 6.3% versus a 16.9% increase in fiscal 2021.
“Tractor Supply had another remarkable year in 2022 as we continued to gain market share and advance our strategic initiatives,” said Hal Lawton, president and CEO of Tractor Supply “For the fourth quarter, while we had an incremental benefit from the late December winter storm, our underlying results were at the high end of our expectations. Our strong results throughout 2022 are directly attributable to the dedication of the more than 50,000 Tractor Supply Team Members who are passionate about ‘Life Out Here’.”
Lawton notes that Tractor Supply has executed Project Fusion — a store remodeling and upgrade program — in nearly 30% of its store base while building more than 300 garden centers. Tractor Supply also expanded its digital and supply chain capabilities while growing its Neighbor’s Club membership program by 47% to more than 28 million members.
Net income increased 22.4% to $270.9 million in the fourth quarter from $221.3 million in the fourth quarter of 2021. For the year, net income increased 9.2% to $1.09 billion from $997.1 million in the prior year.
During the fourth quarter, Tractor Supply opened 39 new stores and six new Petsense by Tractor Supply stores. In October 2022, Tractor Supply acquired 81 stores from Orscheln Farm and Home that will be rebranded to Tractor Supply by the end of 2023.
For the full fiscal year, Tractor Supply opened 63 new stores and nine new Petsense by Tractor Supply stores and closed one Petsense by Tractor Supply store.
Tractor Supply Company is based in Brentwood, Tenn. As of Dec. 31, 2022, the retailer operates 2,066 Tractor Supply stores in 49 states in addition to 81 stores from Orscheln Farm and Home that will be rebranded to the Tractor Supply banner by the end of 2023.
At the end of the calendar year, the company also operated 186 small box Petsense by Tractor Supply stores 23 states.
This month, Tractor Supply opened its latest and largest distribution center to date in Navarre, Ohio. The center will serve 250 stores and e-commerce orders in the Midwest.
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The Bottom Line: It’s a record fourth quarter for Tractor Supply as sales jump 20.7% to over $4 billion and earnings rise more than 22% to $270.9 million.
What the CEO said: “Tractor Supply’s needs-based, demand-driven business model has stood the test of time with consistent and sustainable growth. As we celebrate our 85th anniversary this year, our future couldn’t be brighter. With a solid foundation, we plan to build on our momentum in 2023. We believe we have the right strategies to manage through the near-term and to deliver long-term compounding growth and value creation,” said Tractor Supply Company President and CEO, Hal Lawton.
Company info: Click here to read the full fourth quarter 2022 report from Tractor Supply Company.
