Tractor Supply Co., the largest retail farm and ranch store chain in the U.S., today provided a business update for the second quarter ended June 26, 2010.
The company's net sales for the second quarter 2010 increased 12.6% to $1.07 billion from $946.5 million in the second quarter of 2009. Same-store sales increased 6.1% compared with a same-store sales decrease of 2.7% in the second quarter of 2009.
The Company anticipates that net income for the second quarter will be approximately $75.6 million to $76.7 million, or $2.03 to $2.05 per diluted share, compared to $54.8 million, or $1.50 per diluted share, in the prior year's second quarter.
"We are delighted with our second quarter performance. Consumable, usable and edible categories, such as pet food and animal feed, continued to be solid sales drivers and contributed to our 6.9% comp transaction count increase," said Jim Wright, TSC's chairman and CEO.
"We had expected favorable moisture levels and were able to take advantage of this with strategic inventory allocation and effective markdown management. As a result, we achieved strong same-store sales, higher gross margin, expense leverage and better-than-expected earnings."
The company will release its full second quarter 2010 results after the market close on Wednesday, July 21, 2010.
Company Outlook
The Company raised its expectations for fiscal 2010 net sales of $3.49 billion to $3.53 billion compared to its previous expectations of $3.44 billion to $3.50 billion. Same-store sales for the year are now expected to increase by 2.5% to 3.5%, up from the Company's prior guidance of 1% to 3%. The Company now anticipates annual net income to range from $4.00 to $4.10 per diluted share compared to its previous guidance of $3.48 to $3.60 per diluted share.
Mr. Wright concluded, "In the first half of the year, we continued to serve our customers' rural lifestyle needs successfully and manage the business proactively. Although we remain cautious about economic conditions, we expect that the momentum from our sales and margin initiatives will continue to benefit us. Based on our second quarter performance and added visibility into the second half, we are raising our full year 2010 sales and earnings per share expectations substantially."
About Tractor Supply Company
At June 26, 2010, Tractor Supply Company operated 967 stores in 44 states. The Company's stores are focused on supplying the lifestyle needs of recreational farmers and ranchers. The Company also serves the maintenance needs of those who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located in towns outlying major metropolitan markets and in rural communities. The Company offers the following comprehensive selection of merchandise: (1) equine, pet and small animal products, including items necessary for their health, care, growth and containment; (2) hardware and seasonal products, including lawn and garden power equipment; (3) truck, towing and tool products; (4) work/recreational clothing and footwear for the entire family; (5) maintenance products for agricultural and rural use; and (6) home decor, candy, snack food and toys.
