The farm and ranch retailer opens 13 new locations during the third quarter.
Tractor Supply Company reported third quarter sales increased 8.4% to $3.27 billion from $3.02 billion in the third quarter of 2021.
Comparable store sales increased 5.7%, as compared to an increase of 13.1% in the prior year's third quarter. Comparable store sales for the third quarter of 2022 were driven by comparable average ticket growth of 7%, partially offset by a comparable average transaction count decline of 1.3%.
The Brentwood, Tenn.-based farm and ranch retailer’s net income increased 4.3% to $234.1 million from $224.4 million for the same period a year ago.
During the third quarter, the company opened 11 new Tractor Supply stores and two new Petsense by Tractor Supply stores.
As of Sept. 24, Tractor Supply operated 2,027 stores in 49 states along with 180 Petsense by Tractor Supply stores in 23 states.
Tractor Supply has also upwardly revised its financial projections for 2022. The retailer now expects total sales of $14.06 billion to $14.12 billion compared to a previous forecast for sales between $13.95 and $14.05 billion.
The new financial outlook also expects comp sales increases of 5.4% to 5.8% as compared to earlier expectations of growth running from 5.2% to 5.8%.
The retailer has also forecasted a year-end net income ranging from $1.07 billion to $1.08 billion.
The Bottom Line: Profits rise 4.3% to $234.1 million for the third quarter as sales jump 8.4% to $3.27 billion.
What the CEO said: “Tractor Supply delivered another record quarter as we continued to gain market share and extended our trend of consistent and stable net sales and earnings growth. In a dynamic environment, the underlying health of our business remains resilient given our needs-based, demand-driven product categories, best-in-class customer service and customer relationship management capabilities,” said Hal Lawton, Tractor Supply president and CEO.
“Our Life Out Here strategy is gaining traction and widening our competitive moat, and we are excited about the many growth vectors ahead. We are honored to welcome the Orscheln Farm and Home team to Tractor Supply. With 25% of our store base now in our Project Fusion store format and over 260 Garden Centers operating across the chain, we are on track to achieve major milestones in the history of Tractor Supply with net sales exceeding $14 billion, more than 2,100 Tractor Supply stores and 50,000 dedicated Team Members.”