Tractor Supply sales jump 31%
Through the introduction of retail technology upgrades, along with essential good and services, Tractor Supply Company continues to keep its foot on gas in 2020.
Tractor Supply reported today that third quarter net sales increased 31.4% to $2.61 billion from $1.98 billion in the third quarter of 2019.
Comparable store sales increased 26.8%, as compared to an increase of 2.9% in the prior year’s third quarter.
The Brentwood, Tenn.-based farm and ranch retailer said comp store sales for the quarter were driven by average transaction account growth of 14.3% and ticket growth of 12.5%.
The COVID-19 pandemic continues to have a significant impact on consumer demand in the third quarter across all of the company’s major product categories as customers focused on the care of their homes, land and animals, Tractor Supply.
The retailer also reported that ecommerce sales experienced triple-digit percentage growth for the period.
Net income for the third quarter increased 56.1% to $190.6 million from $122.1 million.
During the quarter, Tractor Supply opened 23 new along with three new Petsense stores. Through the first three quarters of 2020, Tractor Supply has opened 61 new stores and 6 new Petsense locations while closing 1 Tractor Supply store and 3 Petsense stores.
As of Sept. 26, Tractor Supply operated 1,904 stores in 49 states along with 183 Petsense stores in 25 states.
For the fourth quarter, Tractor Supply said that it expects sales between $2.6 billion and $2.7 billion with comp sales increases rising by 15% to 20%. The retailer also expects a fourth quarter net income of $163 million to $175 million.
Tractor Supply has also rolled out and detailed five key points to its “Life Out There” strategy:
- Deliver Legendary Customer Experiences: Expand and deepen Tractor Supply’s customer base by providing personalized, localized and memorable customer engagements.
- Advance the Company’s ONETractor Capabilities: Evolve the Company’s Anytime, Anywhere, Any Way customer experiences by digitizing business processes and furthering omni channel capabilities.
- Operate the Tractor Way: Drive operations excellence and productivity through continuous improvement, space utilization and advanced supply chain capabilities.
- Go the Country Mile with our Team: Connect, empower and grow Team Members to enhance their lives and the communities they live in, enabling them to provide legendary service to the Company’s customers.
- Generate Healthy Shareholder Return: Allocate resources in a disciplined and efficient manner to drive profitable growth and build total shareholder value.
The Bottom Line: Tractor Supply’s third quarter profits rise more than 56% to $190.6 million as sales jump 31.4% to $2.61 billion.
What the CEO said: “Our fundamentals are strong as we continue to gain market share across existing, new and reengaged customers. We are focused on advancing our capabilities to better serve our customers as we look to emerge from the pandemic even stronger,” said Hal Lawton, Tractor Supply president and CEO.
“Our Life Out Here Strategy builds on Tractor Supply’s strong heritage of being the dependable and convenient supplier for the Out Here Lifestyle. With a resilient business model and a differentiated and loyal customer base, we are moving at a fast pace to ensure Tractor Supply continues as a strong, relevant company for the future. Given our solid foundation along with our new strategic initiatives, we believe there are many growth opportunities ahead of us. The future is exciting as we look to drive sustainable growth and long-term value for our shareholders,” Lawton added.
Company info: The full third quarter financial report from Tractor Supply Company is available here.