The nation’s largest rural lifestyle retailer is accelerating its store growth program and it plans to reach 90 stores annually.
Citing “market insights,” Tractor Supply said it is increasing its long-term store target to 3,000 locations, up 200 stores from its previous guidance. The company plans to increase its annual new store openings to 90 beginning in 2025, with a “step up” to 80 locations in 2024. It’s on track to open approximately 70 stores this year.
“With significant share opportunity in a total addressable market of more than $180bn, we have a long growth runway ahead of us as we continue to execute on our Life Out Here strategy,” stated CEO Hal Lawton.
Tractor Supply revealed its updated expansion plans in its second-quarter earnings release. The company posted net income of $421.2M, or $3.83 a share, for the quarter ended 1 July, up from $396.5M, or $3.53 a share, in the year-ago period. Analysts had expected estimates of $4.26bn.
Sales rose 7.2 per cent to $4.18bn, missing estimates of $4.26bn. Comparable sales increased 2.5 per cent, driven by comparable average transaction count increase of 1.8 per cent and comparable average ticket growth of 0.6 per cent.
Comp growth reflected continued strength in core year-round merchandise, which offset softness in demand for seasonal goods and declines in big-ticket items, the company said.
“As has been well documented, US consumer spending on goods is moderating,” stated CEO Hal Lawton said in a statement. “Additionally, our business was further impacted by seasonal underperformance, particularly in June. Consequently, our second quarter results, while solid, were below our expectations.”
