Tractor Supply adjusts financial outlook for 2023

Tractor Supply Company, the largest rural lifestyle retailer in the United States, has reported financial results for its third quarter, which ended 30 September 2023. Net sales for the third quarter of 2023 increased 4.3 per cent to USD 3.41 bn from USD 3.27 bn in the third quarter of 2022. The report indicates that the increase in net sales was driven by contributions from the acquisition of Orscheln Farm and Home and new store openings.

Comparable store sales decreased 0.4 per cent, as compared to an increase of 5.7 per cent in the prior year's third quarter, driven by a comparable average ticket decline of 0.3 per cent and a flat comparable average transaction count. Gross profit increased 7.3 per cent to USD 1.25 bn from USD 1.17 bn in the prior year's third quarter, and gross margin increased 101 basis points to 36.7 per cent from 35.6 per cent in the prior year's third quarter.

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 the third quarter of 2023.

The company also updated its fiscal 2023 financial guidance to reflect its performance through the third quarter along with its expectations for the remainder of the year. They expect net sales between USD 14.5 bn and USD 14.6 bn for the fiscal year. Additionally, capital plans for 2023 include opening a total of approximately 70 Tractor Supply stores, completing the conversion of Orscheln Farm and Home stores to Tractor Supply, continuing Project Fusion remodels and garden centre transformations, building its 10th distribution centre and opening a total of 10 to 15 new Petsense by Tractor Supply stores.