Tractor Supply Co · Q2 2023 earnings

Briefing

Reported solid results, but below expectations due to moderating consumer spending and seasonal underperformance.

Tractor Supply Company reported a 7.2% increase in net sales to $4.18 billion, with a comparable store sales increase of 2.5%. Diluted earnings per share grew by 8.5% to $3.83. The company is updating its fiscal 2023 financial guidance to reflect its performance from the first half of the year along with its expectations for the remainder of the year, including the positive impact of the updates to the real estate portfolio strategy.

• Net sales increased by 7.2% to $4.18 billion, driven by the Orscheln Farm and Home acquisition, new store openings, and comparable store sales growth.
• Comparable store sales increased by 2.5%, driven by a 1.8% increase in comparable average transaction count and a 0.6% increase in comparable average ticket.
• Gross profit increased by 9.3% to $1.51 billion, and gross margin increased by 69 basis points to 36.2%.
• The company announced a new long-term target of 3,000 stores in the U.S. and plans to increase annual new store openings to 90 per year.

Headline financials

Revenue & EPS history

The Company is updating its fiscal 2023 financial guidance to reflect its performance from the first half of the year along with its expectations for the remainder of the year, including the positive impact of the updates to the real estate portfolio strategy.