BRENTWOOD, Tenn. — Tractor Supply Company, the largest retail farm and ranch store chain in the United States, has reported a 12.8 percent net sales increase in the first quarter to $650.2 million from $576.2 million in the prior year’s first quarter.
Same-store sales increased 4.2 percent, compared with a 6.5 percent decrease in the prior-year period.
Driving the increase
This same-store sales increase was primarily driven by the company’s core consumable categories, including animal and pet-related products.
Additionally, same-store sales were positively impacted by approximately 160 basis points due to one additional selling day related to the shift of the Easter holiday from March into April.
Gross margin increased 14.5 percent to $201.0 million, or 30.9 percent of sales, compared to $175.5 million, or 30.5 percent of sales, in the prior year’s first quarter.
The improvement in gross margin resulted primarily from lower fuel costs and improved transportation efficiencies.
Selling, general and administrative expenses, including depreciation and amortization, improved slightly to 30.7 percent of sales for the first quarter of this year compared to 30.8 percent of sales for the first quarter of last year, primarily due to reduced marketing costs.
Net income for the quarter was one-half million, or 1 cent per diluted share, compared to a net loss of $2 million, or 5 cents per diluted share, in the first quarter of the prior year.
The company opened 28 new stores, closed one store, and relocated one store in the first quarter compared to 27 new stores and no closed or relocated stores in the prior year’s first quarter.