Tractor Supply Company Reports Second Quarter Results
Tractor Supply Company Reports Second Quarter Results ~ Earnings per Share Increased 17.9% to $1.45
~~ Raises Full Year 2012 EPS Guidance
~~ Sales Increased 9.6% to $1.29 Billion and Same-Store Sales Increased 3.2% BRENTWOOD, Tenn., July 25, 2012 /PRNewswire/ -- Tractor Supply Company (NASDAQ: TSCO), the largest retail farm and ranch store chain in the United States, today announced financial results for its second fiscal quarter ended June 30, 2012.
Second Quarter Results Net sales increased 9.6% to $1.29 billion from $1.18 billion in the prior year's second quarter. Same-store sales increased 3.2% compared to a 4.6% increase in the prior-year period. The same-store sales increase was driven primarily by continued strong results in key consumable, usable and edible (C.U.E.) products, principally animal- and pet-related merchandise. The Company estimates that approximately $38 million of sales were pulled forward into the first quarter from the second quarter as a result of early spring weather, which is at the high end of the previously communicated range.
Each quarter of fiscal 2012 starts one week later than the same quarter of fiscal 2011 due to the Company's 2011 fiscal year having 53 weeks versus the normal 52 weeks. Adjusting for the one-week calendar shift, same-store sales for the second quarter of 2011 increased 7.1%. Same-store sales for the four quarters and full year of 2011, adjusted for the one-week calendar shift, are presented in the attached table of Selected Financial and Operating Information.
Gross margin dollars increased 12.2% to $451.5 million from $402.5 million in the prior year's second quarter. As a percent of sales, gross margin increased to 34.9% from 34.1% in the prior year. The increase in gross margin as a percent of sales was primarily driven by the favorable impact of a lower percent of sales mix of low margin, big ticket seasonal and emergency response products.
Selling, general and administrative expenses, including depreciation and amortization, improved slightly to 21.8% of sales compared to 21.9% of sales in the prior year's second quarter. The improvement as a percent of sales was primarily attributable to expense control with respect to store personnel and other operating costs.
Net income for the quarter was $106.6 million, or $1.45 per diluted share, compared to net income of $91.2 million, or $1.23 per diluted share, in the second quarter of the prior year.
The Company opened 18 new stores compared to 16 new store openings in the prior year's second quarter.
Jim Wright, Chairman and Chief Executive Officer, stated, "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. The pull-forward of spring category demand into the first quarter from the second quarter was at the high end of our previously communicated range, while all core C.U.E. businesses posted solid increases above last year. Our operating performance and 17th consecutive quarter of comp transaction count increases are testaments to the stability we have built in our business and continue to demonstrate the progress we are making on many of our key initiatives. We remain committed to our strategy of providing exceptional value to our customers, while we continue to evolve our assortments and the in-store experience."
First Six Months Results Net sales increased 14.8% to $2.31 billion from $2.01 billion in the