National Agri-Marketing Association
NAMA Website
Upcoming Events
Chapters
Agri-Marketing Conf
Best of NAMA 2020












1ST QUARTER: TRACTOR SUPPLY CO.'S SALES UP 8%, EARNINGS UP 6%: $181 MILLION
Source: Tractor Supply Co. news release

BRENTWOOD, Tenn.--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today reported financial results for its first quarter ended March 26, 2022.

*Net Sales Increased 8.3%; Comparable Store Sales Increased 5.2% on Top of 38.6% Comparable Store Sales Growth Last Year

*Diluted Earnings per Share ("EPS") Increased to $1.65 from $1.55 Last Year

*Company Reiterates Fiscal 2022 Financial Outlook

"The Tractor Supply team delivered strong results with another quarter of record sales and earnings despite having a difficult comparison from last year's record sales, ongoing supply chain constraints and the Omicron surge. My thanks and appreciation go out to the 46,000 Team Members at Tractor Supply for their dedication to each other and our customers while staying nimble and successfully navigating a wide range of macro challenges. Our Team Members continue to be the key driver of our success," said Hal Lawton, Tractor Supply's President and Chief Executive Officer.

Lawton continued, "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. 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."

First Quarter 2022 Results

Net sales for the first quarter 2022 increased 8.3% to $3.02 billion from $2.79 billion in the first quarter of 2021. Comparable store sales increased 5.2%, as compared 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%. Comparable store sales growth reflects robust demand for everyday merchandise, including consumable, usable and edible ("C.U.E.") products and strength in winter seasonal goods, partially offset by a slower start to the spring selling season. In addition, the Company's e-commerce sales experienced double-digit percentage growth for the 39th consecutive quarter.

Gross profit increased 7.4% to $1.06 billion from $983.8 million in the prior year's first quarter, and gross margin decreased 29 basis points to 34.9% from 35.2% in the prior year's first quarter. The Company's price management actions and other margin driving initiatives were able to offset the majority of the impact from significant product cost inflation pressures and higher transportation costs. To a lesser extent, product mix from the robust growth of the Company's C.U.E. products were unfavorable to gross margin.

Selling, general and administrative ("SG&A") expenses, including depreciation and amortization, increased 7.8% to $812.2 million from $753.2 million in the prior year's first quarter. As a percent of net sales, SG&A expenses improved 11 basis points to 26.9% from 27.0% in the first quarter of 2021. The improvement in SG&A as a percent of net sales was primarily attributable to more normalized incentive compensation and a moderation of COVID-19 response costs, as well as leverage in occupancy and other costs from the increase in comparable store sales. These items were partially offset by investments in store wages and the Company's strategic growth investments.

Operating income increased 6.0% to $244.3 million compared to $230.5 million in the first quarter of 2021.

The effective income tax rate was 21.1% compared to 18.8% in the first quarter of 2021. The first quarter of 2021 tax rate included a discrete incremental tax benefit associated with share-based compensation that did not reoccur at the same magnitude this year.

Net income increased 3.2% to $187.2 million from $181.4 million, and diluted EPS increased 6.5% to $1.65 from $1.55 in the first quarter of 2021.


Search News & Articles














Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © 2022, Henderson Communications LLC. | User Agreement