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Tractor Supply Company Reports First Quarter 2023 Financial Results; Reiterates Fiscal 2023 Financial Outlook

General News
Tractor Supply Company Logo - Retail Lumber Yard

Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today reported financial results for its first quarter ended April 1, 2023.

  • Net Sales Increase of 9.1% to $3.30 Billion
  • Comparable Store Sales Increase of 2.1%, Led by Strength in Consumable, Usable and Edible Categories
  • Diluted Earnings per Share of $1.65, Even with the Prior Year
  • Company Confirms 2023 Financial Outlook

“While our first quarter net sales growth exceeded 9%, 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. 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. With the majority of the year ahead of us and given our track record of nimbly managing the business, we are confirming our financial outlook for fiscal 2023,” said Hal Lawton, president and chief executive officer of Tractor Supply.

“Tractor Supply’s needs-based, demand-driven business model has stood the test of time with consistent and sustainable growth. We remain excited about our growth opportunities as we continue to widen our competitive advantages as the team is making great progress on our Life Out Here strategy. My appreciation goes out to the more than 52,000 Team Members for their commitment to each other and our customers,” said Lawton.

First Quarter 2023 Results

Net sales for the first quarter of 2023 increased 9.1% to $3.30 billion from $3.02 billion in the first quarter of 2022. The increase in net sales 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%, as compared to an increase of 5.2% in the prior year’s first quarter, driven by comparable average ticket growth of 2.8% and a comparable average transaction count decrease of 0.7%. Comparable store sales growth reflects continued strength in core year-round merchandise, including consumable, usable and edible (“C.U.E.”) products, offset by declines for seasonal goods. The strongest regions for comparable store sales growth were the South Atlantic, Texas/Oklahoma and Far West where there was less negative impact from seasonal shifts. The strength of these regions was offset by pressure in the Northeast and Mid-West regions due to a mild January combined with a delay in the start to the spring selling season.

Gross profit increased 10.7% to $1.17 billion from $1.06 billion in the prior year’s first quarter, and gross margin increased 52 basis points to 35.5% from 34.9% in the prior year’s first quarter. The gross margin rate increase was primarily attributable to the Company’s consistent execution of an everyday low price strategy, lower transportation costs and other margin-driving initiatives that were able to more than offset the impact from product cost inflation pressures and product mix from the robust growth of C.U.E. products.

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 13.9% to $925.5 million from $812.2 million in the prior year’s first quarter. As a percent of net sales, SG&A expenses increased 119 basis points to 28.1% from 26.9% in the first quarter of 2022. The increase in SG&A as a percent of net sales was attributable to deleverage given the moderate comparable store sales growth, as well as growth in depreciation and amortization, the onboarding of a new distribution center and the impact of the Orscheln Farm and Home acquisition.

Operating income of $244.4 million was effectively flat compared to $244.3 million in the first quarter of 2022.

The effective income tax rate improved slightly to 21.0% compared to 21.1% in the first quarter of 2022.

Net income decreased 2.2% to $183.1 million from $187.2 million, and diluted earnings per share was $1.65 in the first quarter of both 2023 and 2022.

The Company repurchased approximately 0.9 million shares of its common stock for $197.2 million and paid quarterly cash dividends totaling $113.4 million, returning $310.6 million of capital to shareholders in the first quarter of 2023.

The Company opened 17 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the first quarter of 2023.

Fiscal 2023 Financial Outlook

The Company confirmed its fiscal 2023 financial guidance, initially provided on January 26, 2023.

For fiscal 2023, the Company expects the following:

Net Sales $15.0 billion to $15.3 billion
Comparable Store Sales +3.5% to +5.5%
Operating Margin Rate 10.1% to 10.3%
Net Income $1.13 billion to $1.17 billion
Earnings per Diluted Share $10.30 to $10.60

Anticipated capital expenditures include 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.

For the complete press release, click here.

About Tractor Supply Company

Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, has been passionate about serving its unique niche, targeting the needs of recreational farmers, ranchers and all those who enjoy living the rural lifestyle, for 85 years. Tractor Supply offers an extensive mix of products necessary to care for home, land, pets and animals with a focus on product localization, exclusive brands and legendary customer service for the Out Here lifestyle. With more than 50,000 Team Members, the Company’s physical store assets, combined with its digital capabilities, offer customers the convenience of purchasing products they need anytime, anywhere and any way they choose at the everyday low prices they deserve. As of December 31, 2022, the Company operated 2,066 Tractor Supply stores in 49 states, a consumer mobile app and an e-commerce website at In October 2022, Tractor Supply acquired 81 stores from Orscheln Farm and Home that will be rebranded to Tractor Supply by the end of 2023.

Tractor Supply Company also owns and operates Petsense by Tractor Supply, a small-box pet specialty supply retailer focused on meeting the needs of pet owners, primarily in small and mid-size communities, and offering a variety of pet products and services. As of December 31, 2022, the Company operated 186 Petsense by Tractor Supply stores in 23 states. For more information on Petsense by Tractor Supply, visit


Mary Winn Pilkington – Media Relations – – (615) 440-4212

Source: Tractor Supply Company