Tractor Supply Co Q1 2024 Financials & Outlook Reiteration

Tractor Supply Company (NASDAQ: TSCO), the leading retailer catering to rural lifestyles in the United States, announced its financial results for the first quarter ending on March 30, 2024.

Key Highlights:

  • Net Sales: Increased by 2.9% to $3.39 billion.
  • Comparable Store Sales: Showed a growth of 1.1%, primarily driven by increased transactions.
  • Diluted Earnings per Share (“EPS”): Stood at $1.83, marking a robust 10.9% increase compared to the previous year.
  • 2024 Financial Outlook: Company reaffirms its financial projections for the year.

Hal Lawton, President and CEO of Tractor Supply, expressed satisfaction with the first-quarter results, citing positive comparable store sales and significant earnings growth. He credited the company’s dedicated workforce of over 50,000 Team Members for upholding the company’s mission and values, delivering exceptional customer service, and contributing to the solid financial performance. Lawton highlighted positive indicators in the business, including continued market share expansion, transaction growth, and robust sales in high-ticket items. He emphasized the company’s confidence in its 2024 outlook, driven by share gains and the continued implementation of its Life Out Here strategy, aimed at catering to rural lifestyle needs. Lawton reiterated the company’s commitment to prudent investments to capitalize on long-term growth opportunities in the market.

First Quarter 2024 Results:

  • Net sales rose to a record $3.39 billion, a 2.9% increase from $3.30 billion in the same quarter of 2023, primarily fueled by new store openings and growth in comparable store sales.
  • Comparable store sales grew by 1.1%, driven by a 1.3% increase in comparable average transaction count, offset slightly by a 0.2% decline in comparable average ticket.
  • Gross profit increased by 4.4% to $1.22 billion, with gross margin expanding by 50 basis points to 36.0%, attributed to lower transportation costs, efficient product cost management, and the continued implementation of an everyday low price strategy.
  • Selling, general, and administrative expenses, including depreciation and amortization, rose by 3.5% to $957.7 million, with SG&A expenses as a percentage of net sales increasing by 16 basis points to 28.2%, primarily due to planned growth investments.
  • Operating income increased by 7.6% to $263.1 million.
  • The effective income tax rate stood at 21.1%, slightly up from 21.0% in the first quarter of 2023.
  • Net income increased by 8.2% to $198.2 million, resulting in a 10.9% increase in diluted EPS to $1.83.
  • The company repurchased approximately 0.5 million shares of its common stock for $117.4 million and paid quarterly cash dividends totaling $118.8 million, returning a total of $236.2 million of capital to shareholders during the quarter.
  • Tractor Supply opened 17 new Tractor Supply stores and four new Petsense by Tractor Supply stores during the first quarter of 2024.

Source link