Tractor Supply Q4 earnings slide
Tractor Supply reported fourth quarter 2017 sales increased 1.9% to $1.95 billion from $1.92 billion in the fourth quarter of 2016.
While Comp sales rose 4% for the quarter the Brentwood, Tenn.-based retailer said the prior year’s fourth quarter included an extra sales week as part of the company’s 53-week calendar in 2016, which negatively impacted the overall sales increase by approximately 6.7 percentage points.
For the year, net sales increased 7% to $7.26 billion in 2017 from $6.78 billion in fiscal 2016. Comparable store sales increased 2.7% for the year.
Tractor Supply also reported a net income of $109.7 million for the fourth quarter 2017, a 12.7% drop compared to net income of $123.6 million in the fourth quarter 2016. For the year, the company posted a net income of $422.6 million, a 3.4% slide from a net income of $437.1 million in 2016.
The company opened 27 new Tractor Supply stores and closed seven Del’s stores in the fourth quarter of 2017 compared to 21 new store openings and one closure of a Del’s store in the prior year period. Additionally, in the fourth quarter of 2017, the company opened 6 new Petsense stores and had no Petsense store closures compared to 8 store openings and 1 store closure during the fourth quarter of 2016.
For the full year, Tractor Supply opened 101 new Tractor Supply stores, converted its 2 Hometown Pet stores to Petsense stores, and closed 9 Del’s stores in fiscal 2017 as compared to 113 new store openings and 6 Del’s store closures during fiscal 2016. The Company also opened 25 new Petsense stores, including the conversion of 2 Hometown Pet stores, during fiscal 2017 and had no Petsense store closures.
Tractor Supply also said that the Tax Cuts and Jobs Act passed last December was will have a positive impact on its effective tax rate in 2018 and subsequent years. The Tax Cuts and Jobs Act is expected to reduce the company’s effective tax rate in 2018 from approximately 36.7% to approximately 23.0% to 23.5%.
As of Dec. 30, 2017, Tractor Supply operated 1,685 stores in 49 states along with 168 Petsense stores in 26 states.
HBSDealer Stock Watch: Declines continue
Wednesday marked the third day in a row of declining stocks in the hardware and building supply industry.
Despite a strong sales in the third quarter, the most dramatic drop on the chart belonged to EXP, down 4.8%. LL was down 4.4%’; and SHLD was down 3.4%. BXC and WY bucked the trend by increasing more than 2% on the day.
Huttig takes home CMA Star Award
Huttig Building Products, Inc. was recognized by the Construction Marketing Association (CMA) Star Awards as the 2017 Midwest Construction Marketer of the Year for marketing excellence in the construction industry.
The CMA Star awards recognize excellence in categories including advertising, branding, website design, social media, brochures, catalogs, new product launches, packaging, photography, promotions, publicity, merchandising, trade shows, videos, employee communications and integrated marketing campaigns, along with the Midwest Construction Marketer of the Year, which was awarded to Huttig.
“Huttig Building Products was recognized as the winner of the Midwest Construction Marketer of the Year award,” states CMA Chairman Neil M. Brown. “The CMA Star Awards showcase the very best in marketing, effectiveness and creative execution."
[Check out a Huttig promotional video here.]
In addition to being named 2017 Midwest Construction Marketer of the Year, Huttig Building Products also received the 2017 Superstar Awards for Integrated Campaign and Microsite Digital Marketing.
Huttig is currently in its 134th year of business. It distributes building materials through 27 distribution centers serving 41 states.