Following its recent acquisition of Petsense, a pet products retail chain, Tractor Supply Company reported a slight rise in third quarter sales and income despite market headwinds in several regions of the country.
Net sales for the third quarter increased 4.5% to $1.54 billion from $1.48 billion in the third quarter of 2015. Comparable store sales decreased 0.6% versus a 2.9% increase in the prior year’s third quarter. Comparable average ticket decreased 1.1% while comparable store transaction counts remained positive with an increase of 0.5%. Comparable store sales were strongest in the west and southeast regions and weakest in the midwest, south central and northeast regions.
Net income increased 2.4% to $89.4 million from $87.3 million, and diluted earnings per share increased 4.7% to $0.67 from $0.64 in the third quarter of the prior year.
Greg Sandfort, CEO, Tractor Supply, said, “Our third quarter sales performance was significantly influenced by economic headwinds in our energy and agricultural markets and lower pre-season demand for cold weather and heating products. We do not believe the current trends are the result of significant changes in the competitive landscape or market share. During this more challenging environment, our teams are focused on driving sales and managing controllable items such as inventory and expenses. Over the long-term, we remain focused on enhancing our merchandise offerings, systems, people and processes to better meet the evolving needs of our customers, drive profitable growth and return value to our shareholders.”
Tractor Supply Company operates 1,575 stores in 49 states.
