Tractor Supply Plows Ahead

Despite a stagnant economy and drought conditions across large parts of the country, Brentwood, Tenn.-based Tractor Supply Co. reported sales and earnings growth.

The company posted second-quarter sales of $1.29 billion, up 9.6% from $1.18 billion in the same quarter last year.

The nation’s largest chain of farm and ranch specialty stores posted earnings of $106.6 million, up 8.3% from $91.2 million in the year-ago period.

"We are pleased with our ability to generate double-digit EPS growth during the second quarter, while operating in a stagnant economy and navigating weather shifts and unfavorable drought conditions,” said Jim Wright, chairman and CEO.

The company opened 18 new stores compared to 16 new store openings in the prior year's second quarter. The company operates 1,135 stores in 45 states.

Same-store sales increased 3.2%, even as the early spring weather pulled sales out of the second quarter and into the first quarter, according to the company.

The impact of the drought across much of the middle of the country appears to have affected farmers much more than it has affected the farm and ranch retailer.

"Our team is actively managing the product assortment to meet customer needs in the affected markets as the drought continues to spread and intensify," said Wright.

Source: retailingtoday.com

Tractor Supply Poised for Additional Growth

Tractor Supply announced this week an increase to its long term operating margin target and that it plans to open additional stores.   Tractor Supply Company (NASDAQ: TSCO) has carved out a niche in the market and appears to be exploiting that niche very effectively. 

The recent press release included this statement from their Chairman and CEO.

Jim Wright, Chairman and Chief Executive Officer, added, "Over the past four years, we have effectively tested and validated the viability of the Tractor Supply store model in small markets.  We are pleased that we are able to generate a comparable rate of return on investment in these markets, which opens up additional growth opportunities for Tractor Supply stores. We believe we have a long runway of growth ahead of us.  In working toward our expanded goal of 2,100 stores, we will continue to target square footage growth of approximately 8% annually, which has been a very manageable growth rate for the Company."

Is your company supplying to Tractor Supply?  We’d like to hear your thoughts on their merchandising strategy and their status with regards to sharing retail point of sale data with vendors.