On May 26th, Tractor Supply Co. (NASDAQ:TSCO) provided a guidance for the second quarter, 2020. TSCO stock price gained 6% in after hours on Tuesday.
“Today, we have a unique opportunity to grow our business as we roll out new technology and services while capitalizing on our product categories and convenient shopping format. Continuing to build our relationships across our customer base is a top priority for us as we are growing share with existing and new customers, while also reengaging lapsed customers. The investments we are making in our Team Members and new technology and services are done with a commitment to disciplined financial returns and profitable growth as we look for these strategic investments to be offset over time by increased sales, improved gross margin opportunities and cost savings in other areas.”-said Hal Lawton, Tractor Supply’s President and CEO.
According to Tractor Supply they are continuing to experience record sales across its channels, product categories and geographic regions. The Company’s e-commerce business has experienced substantial growth quarter-to-date with many customers choosing Buy Online, Pickup At Store and the new contactless curbside delivery option.
While there is still a significant portion of the second quarter ahead, the Company currently forecasts net sales growth of 24% to 29% and comparable store sales growth of 20% to 25%. The Company’s gross profit performance continues to be strong with gross margin expansion anticipated for the second quarter. For the second quarter, the net incremental operating expenses related to the COVID-19 pandemic are estimated to be at the high end of the Company’s previous guidance range of $30 million to $50 million. Diluted earnings per share for the second quarter is forecasted to be in the range of $2.45 to $2.65.
The Company will release its second quarter 2020 earnings news release before the market opens on Thursday, July 23, 2020. The Company will hold its second quarter 2020 earnings conference call that day at 9:00 a.m. CT / 10:00 a.m. ET, hosted by Hal Lawton, President and Chief Executive Officer, and Kurt Barton, Executive Vice President – Chief Financial Officer. This event will be webcast live at IR.TractorSupply.com.