BRENTWOOD, Tenn., Oct. 25, 2018 — Tractor Supply Co. (TSCO), the largest rural lifestyle retail chain in the U.S., announced financial results for its third quarter ended Sept. 29, 2018.
Third Quarter 2018 Results
Net sales for the third quarter 2018 increased 9.3% to $1.88 billion from $1.72 billion in the third quarter of 2017. Comparable store sales increased 5.1%, as compared to an increase of 6.6% in the prior year’s third quarter.
Gross profit increased 8.8% to $653.1 million from $600.5 million in the prior year’s third quarter, and gross margin decreased 16 basis points to 34.7% from 34.9% in the prior year’s third quarter. The slight decline in gross margin resulted primarily from an increase in freight expense due to higher carrier rates and increased diesel fuel prices, partially offset by the strength of the company’s price management program.
Net income increased 27.1% to $116.8 million from $91.9 million. The company opened 23 new Tractor Supply stores and 7 new Petsense stores in the third quarter of 2018.
First 9 Months of Fiscal 2018 Results
Net sales for the first 9 months of 2018 increased 8.9% to $5.78 billion from $5.30 billion in the first 9 months of 2017. Comparable store sales increased 4.9% vs. a 2.2% increase in the first 9 months of 2017. Gross profit increased 8.9% to $1.99 billion from $1.82 billion and gross margin was 34.4%, consistent with the 9 nine months of 2017.
Net income increased 26.4% to $395.5 million from $312.9 million. During the first 9 months of 2018, the company opened 63 new Tractor Supply stores and 14 new Petsense stores and closed 1 Petsense store.
Fiscal 2018 Outlook
Based upon the results of the first 9 months of fiscal 2018, the company is providing the following updated guidance for the expected results of operations in fiscal 2018: