Tractor Supply Company reported that fourth quarter 2020 sales surged 31.3% to a company record of $2.88 billion from sales of $2.19 billion in the fourth quarter of 2019.
Comparable store sales increased 27.3% in the fourth quarter as compared to an increase of 0.1% in the prior year’s fourth quarter.
The Brentwood Tenn.-based farm and ranch lifestyle retailer said that the COVID-19 pandemic continued to have a significant, positive impact on consumer demand in the fourth quarter of 2020 across all of the company’s major product categories as customers focused on the care of their homes, land and animals.
Comparable store sales for the fourth quarter 2020 were driven by comparable average transaction count and ticket growth of 14.3% and 13%, respectively.
Net sales for the full year increased 27.2% to $10.62 billion from $8.35 billion in fiscal 2019. Comparable store sales for the full year increased 23.1% versus a 2.7% increase in fiscal 2019.
Tractor Supply posted a net income of $135.9 million in the fourth quarter, down 5.8%, compared to a net income of $144.2 million in the fourth quarter a year ago. For fiscal 2020, the retailer reported a net income of $749 million, jumping 33.2% compared to $562.4 million in fiscal 2019.
Fourth quarter 2020 results include non-cash impairment charges for the Petsense business of $74.1 million. The company said the charge is due to a strategic reassessment of the Petsense business and a decision to reduce the number of new store openings planned over the long term along with the impairment of assets at underperforming locations
During the fourth quarter, Tractor Supply opened 19 stores and 3 Petsense stores. The company also closed 4 Petsense stores in the quarter.
For the full year, Tractor Supply opened 80 new stores and 9 Petsense stores. A lone Tractor Supply location and 7 Petsense stores were closed during the year.
Looking ahead, Tractor Supply's outlook for 2021 includes sales of $10.7 billion to $11 billion and a net income of $750 million to $800 million.
The Bottom Line: Tractor Supply sees record sales of $2.88 billion for the quarter while profits slip 5.8% to $135.9 million.
What the CEO said: “Our team remained agile in a challenging operating environment as we experienced unprecedented demand and welcomed a record number of new and reengaged customers to Tractor Supply,” said Hal Lawton, Tractor Supply president and CEO. “The team has done an exemplary job operating the business at elevated rates in the midst of a global pandemic, all while laying the foundation for our Life Out Here Strategy. Going forward, we believe our resilient business model with a differentiated and loyal customer base, our strategic investments to capture growth opportunities and the strength of our balance sheet position us to capitalize on the momentum in our business in 2021 and beyond.”
Company info: The full fourth quarter 2020 report from Tractor Supply is available here.