Strong results in consumable categories, a little inflation and some Hurricane Irene-related sales fueled an 11.5% same-store sales increase and led to a strong overall third-quarter financial performance at Tractor Supply.
Net income for the quarter was $42.7 million, up 42.8% from net income of $29.9 million in the third quarter of the prior year.
Third-quarter net sales increased 17.9% to $977.8 million from $829.1 million in the prior year's third quarter.
“We generated double-digit increases in both sales and earnings on top of last year’s record results while improving gross margin and leveraging (selling, general and administrative expenses),” said Jim Wright, Tractor Supply’s chairman and CEO. “This strong performance, which also included positive ticket and traffic, reflects the impact of our strategic initiatives and our ability to respond to our customers’ everyday rural lifestyle needs. Additionally, we executed exceptionally well and successfully managed through the inflationary environment. We are delighted that we continue to experience broad-based strength across the business.”
The company opened 12 new stores during the quarter and ended the period with 1,054 stores in 44 states.
During the first nine months of 2011, net income was $152.2 million, up 29% from net income of $117.8 million for the first nine months of 2010. Net sales for this period increased 14.9% to $2.99 billion from $2.61 billion in the first nine months of 2010. Same-store sales increased 8.5% compared to a 4.8% increase in the first nine months of 2010.
The company opened 54 new stores, relocated two stores and closed one store, compared with 47 new store openings and one store closure during the first nine months of 2010.
Looking forward, Tractor Supply now expects full-year profits to range from $2.85 to $2.89 a share compared with a previous estimate of $2.75 to $2.82 a share.