Tractor Supply sales rise as openings stall
Tractor Supply Company reports first quarter net sales increased 8.3% to $3.02 billion from $2.79 billion in the first quarter of 2021.
The Brentwood, Tenn.-based farm and ranch lifestyle retailer also saw comparable store sales increased 5.2% This compares to an increase of 38.6% in the prior year's first quarter. Comparable store sales for the first quarter of 2022 were driven by comparable average ticket growth of 6.7% and a decline in comparable average transaction count of 1.4%.
The company said it realized double-digit e-commerce sales growth for the 39th consecutive quarter.
Net income for the period increased 3.2% to $187.2 million from $181.4 million for the first quarter a year ago.
The opening of new locations was stalled, however.
Tractor Supply said openings during the first quarter were delayed due to lingering impacts from the pandemic and challenges facing the construction industry.
In its first quarter financial report, Tractor Supply said it still expects to open 75 to 80 new locations in 2022.
As of March 26, the retailer operated 2,003 Tractor Supply stores in 49 states along with 178 Petsense stores in 23 states. The company operated the same total of Tractor Supply locations at the end of 2021.
During the first quarter, Tractor Supply repurchased approximately 1.4 million shares of its common stock for $296.2 million and paid cash dividends of $103.5 million.
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The Bottom Line: Tractor Supply profits grow 3.2% to $187.2 million but sales growth is impacted by a lack of new locations.
What the CEO said: “While we anticipate that we will continue to operate in a highly inflationary and volatile environment, we believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time,” said Hal Lawton, president and CEO of Tractor Supply Company. “The strength of our business and the needs-based, demand-driven nature of our product categories complemented by our Life Out Here strategy give us confidence in our outlook and in our ability to successfully navigate the continuing challenges of the dynamic environment.”
Lawton also noted that while the company realized another quarter of record sales and earnings it’s difficult to make a comparison to last year’s record sales due to ongoing supply chain constraints and the Omicron surge.
Company Info: Click here to read Tractor Supply Company’s full first quarter 2022 financial report.
