Tractor Supply Company reported Q2 2010 results this afternoon. Net sales increased 12.6 percent to $1.07 billion in the second quarter of 2009 while net income for the quarter was $2.05 per share compared to $1.50 in the prior year. Same store sales increased by 6.1 percent driven by solid results in consumables and strong demand for big ticket items such as riding mowers.
We presented a profile of Tractor Supply’s business earlier this month and concluded that the company offers an interesting growth story although shares currently trade at levels that might already discount these prospects. Here are a few highlights from the earnings press release:
Gross margin for the quarter was 33.7 percent of sales compared to 31.9 percent for Q2 2009.
Selling, general and administrative expenses were 22.2 percent of sales compared to 22.6 percent for Q2 2009.
19 new stores were opened during the quarter compared to 13 stores for Q2 2009. The company had 967 stores as of June 26.
Management maintained guidance for fiscal 2010 net sales to range from $3.49 billion to $3.53 billion, same store sales to increase 2.5 to 3.5 percent, and net income per share to range from $4.00 to $4.10.
Management successfully deployed a new point of sale and enterprise resource planning system during the second quarter.
Management held a conference call this afternoon to discuss results. A replay should be available at this link shortly.