Tractor Supply Company (NASDAQ:TSCO) shares are trading lower after releasing second-quarter earnings.
The company reported quarterly earnings per share of $3.93, in line with the street view.
Second-quarter sales totaled $4.25 billion (+1.5%), which missed the analyst consensus of $4.284 billion.
Comparable store sales decreased 0.5%, as compared to an increase of 2.5% in the prior year's second quarter, driven by a comparable average transaction count decline of 0.6%.
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Gross profit, however, increased 2.7% to $1.56 billion. Gross margin increased 43 basis points to 36.6% from 36.2% in the prior year's second quarter.
The gross margin rate increase was primarily attributable to ongoing lower transportation costs along with disciplined product cost management and the continued execution of an everyday low price strategy.
The company opened 21 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the second quarter of 2024.
"At the halfway point of the year, we have made significant progress on our Life Out Here strategy. We continue to create more separation between us and our competition," said Hal Lawton, President and Chief Executive Officer of Tractor Supply.
Outlook: Tractor Supply tightened its 2024 net sales forecast to $14.8 billion-$15 billion from the prior guidance of $14.7 billion-$15.1 billion and consensus of $14.97 billion.
Tractor Supply forecasts 2024 EPS of $10.00-$10.40 versus prior guidance of $9.85-$10.50 and consensus of $10.38.
Price Action: TSCO shares are trading lower by 3.79% to $252.57 premarket at last check Thursday.
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