Tractor Supply Company's Sales Up 15%, Net Income Rises 34%
Monday, July 30th, 2012
First Six Months Results
Net sales increased 14.8% to $2.31 billion from $2.01 billion in the first six months of 2011. Same-store sales increased 6.7% compared to a 7.0% increase in the first six months of 2011. Gross margin dollars increased 16.0% to $784.3 million, or 33.9% of sales, compared to $676.1 million, or 33.6% of sales, in the first six months of 2011.
Selling, general and administrative expenses, including depreciation and amortization, increased 9.3% to $550.0 million, but improved as a percent of sales to 23.8% compared to 25.0% for the first six months of 2011.
Net income was $146.9 million, or $2.00 per diluted share, compared to net income of $109.5 million, or $1.47 per diluted share, for the first six months of 2011.
The Company opened 51 new stores and closed one store in the first six months of 2012 compared to 42 new store openings during the first six months of 2011.
Net sales for the full-year 2012 are now expected to range between $4.58 billion and $4.65 billion compared to the Company's previously expected range of $4.61 billion to $4.68 billion. Same-store sales for the year are now expected to increase 3.5% to 5.0% compared to the prior expectation for an increase of 4.0% to 5.5%. Based on stronger than expected net income per diluted share for the second quarter, the Company now anticipates net income per diluted share for the full-year 2012 will range between $3.58 and $3.66, compared to its previous guidance of $3.52 to $3.60.
Mr. Wright concluded, "Our second quarter performance shows the underlying strength of our core businesses, as well as our ability to manage through and respond to a wide array of variables. Our team is actively managing the product assortment to meet customer needs in the affected markets as the drought continues to spread and intensify. As demonstrated in the past, we have the ability to effectively react to seasonal variances. Looking to the second half of 2012, we remain energized about the opportunities we see ahead and will continue to build on the progress we have made in the areas of inventory management, merchandise allocation and regionalization. We have built a stable and differentiated business that serves a unique niche in the retail marketplace."