TSC 3rd. Quarter Sales and Earnings Report
An AgWeb.com Farm Equipment Special
Tractor Supply Company (TSC), the largest retail farm and ranch store chain in the United States, has reported its net sales increased 16.6% to $733.9 million from $629.2 million in the prior year's third quarter. Same-store sales increased 6.2% compared with a 1.9% increase in the prior year's third quarter. They say same-store sales growth was driven by the Company's core consumable categories, including animal and pet-related products; seasonal heating-related products; and emergency-response merchandise related to hurricane activity.
Net income for the quarter was $19.8 million, or $0.53 per diluted share, compared to $17.5 million, or $0.44 per diluted share, in the prior year's third quarter.
The Company opened 20 new stores in the quarter compared to 21 new stores and four store relocations in the prior year's third quarter.
Nine-month Performance
For the first nine months of 2008, TSC’s net sales increased 11.5% to $2.21 billion. Same-store sales increased 1.5% compared to an increase of 3.3% in the first nine months of 2007. Gross margin in the first nine months of 2008 increased 10.3% to $681.0 million in comparison to the first nine months of 2007. As a percent of sales, gross margin was lower at 30.8% of sales for the first nine months of 2008 compared to 31.2% for the first nine months of 2007.
Net income for the first nine months of 2008 was $65.6 million, or $1.74 per diluted share, compared to net income of $66.2 million, or $1.63 per diluted share, for the first nine months of 2007.
During the first nine months of 2008, the Company opened 70 new stores with no relocations, compared to 63 new store openings, 11 relocations, and the sale of its Del's store in Canada during the first nine months of 2007.
