Tractor Supply Co (TSCO) Reports Q3 2023 Financial Results
Net sales for Q3 2023 increased by 4.3% to $3.41 billion
Diluted earnings per share grew by 11.0% to $2.33
Comparable store sales decreased by 0.4%
Company updates its fiscal 2023 financial outlook
On October 26, 2023, Tractor Supply Co (NASDAQ:TSCO) reported its financial results for the third quarter ending September 30, 2023. The company saw a net sales increase of 4.3% to $3.41 billion, although comparable store sales declined by 0.4%. Despite the decline in comparable store sales, the company's diluted earnings per share grew by 11.0% to $2.33.
Financial Performance and Challenges
Tractor Supply Co (NASDAQ:TSCO) reported solid growth in both net sales and earnings for the third quarter, despite sales performance being softer than expected. The company attributes the updated outlook for the year to continued unfavorable seasonal category performance and discerning consumer spending. However, the company's consistent market share expansion and positive customer trends underscore the enduring strength of its business.
Financial Achievements
Tractor Supply Co (NASDAQ:TSCO) reached significant milestones in its Life Out Here strategic initiatives, with 35% of the chain in Project Fusion layout and the completion of more than 420 Garden Centers. The company also reported growth in active, reactivated, and new customer counts for the quarter.
Income Statement Summary
Net income for Q3 2023 increased by 8.9% to $255.0 million from $234.1 million. Diluted earnings per share increased by 11.0% to $2.33 compared to $2.10 in Q3 2022. The increase in diluted EPS includes a one-time benefit of $0.08 per share from the adjustment to the useful lives of certain store remodel assets.
Balance Sheet and Cash Flow Statement Summary
During Q3 2023, the company repurchased approximately 0.6 million shares of its common stock for $135.4 million and paid quarterly cash dividends totaling $112.0 million, returning $247.4 million of capital to shareholders. The company opened 17 new Tractor Supply stores and four new Petsense by Tractor Supply stores and closed one Petsense by Tractor Supply store in Q3 2023.
Fiscal 2023 Financial Outlook
Tractor Supply Co (NASDAQ:TSCO) updated its fiscal 2023 financial guidance to reflect its performance through the third quarter and its expectations for the remainder of the year. The company now expects net sales to be between $14.5 billion and $14.6 billion, with comparable store sales expected to be flat. The operating margin rate is projected to be between 10.1% and 10.2%, with net income expected to be between $1.10 billion and $1.11 billion. Earnings per diluted share are projected to be between $10.00 and $10.10.
Explore the complete 8-K earnings release (here) from Tractor Supply Co for further details.
This article first appeared on GuruFocus.
