Tractor Supply, the largest rural lifestyle retailer in the United States, reported financial results for its first quarter, which ended on 1 April 2023. Net sales for the first quarter of 2023 increased 9.1 per cent to USD 3.30 bn from USD 3.02 bn in the first quarter of 2022. The increase was driven by positive sales contributions from the acquisition of Orscheln Farm and Home, new store openings and growth in comparable store sales. Comparable store sales increased 2.1 per cent, as compared to an increase of 5.2 per cent in the prior year’s first quarter.
“While our first quarter net sales growth exceeded 9 per cent, our comparable store sales were below our expectations, primarily due to less favorable spring weather trends. We remain confident in our outlook given our continued share gains, the results of our year-round product categories and the scaling of our strategic investments,“ said Hal Lawton, president and chief executive officer of Tractor Supply. „We saw materially softer demand in our seasonal products due to a delay in the spring selling season across most of our markets, notably in the last few weeks of March, and to a lesser extent a mild January. We believe that our customer remains healthy, as evidenced by positive comparable transactions in our last two months, and that we continue to gain market share. As spring has arrived across our markets, we are pleased with the improved sales trends we are seeing.”
Comparable store sales were driven by comparable average ticket growth of 2.8 per cent and a comparable average transaction count decrease of 0.7 per cent. Gross profit increased 10.7 per cent to USD 1.17 bn from USD 1.06 bn in the prior year’s first quarter, and gross margin increased 52 basis points to 35.5 per cent from 34.9 per cent in the prior year’s first quarter.
The company opened 17 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the first quarter of 2023. Tractor Supply stated plans in 2023 to open a total of approximately 70 Tractor Supply stores, complete the Orscheln Farm and Home conversions to Tractor Supply, continue the Project Fusion remodels and garden center transformations, and open a total of 10 to 15 new Petsense by Tractor Supply stores.