Tractor Supply Q2 EPS $3.83 (+8.5% YoY); cuts FY23 sales and comp guidance; targets 3,000 stores

Second Quarter 2023 Results Net sales for the second quarter of 2023 increased 7.2% to $4.18 billion from $3.90 billion in the second quarter of 2022. The increase in net sales was driven by contributions from the acquisition of Orscheln Farm and Home, new store openings and growth in comparable store sales. Comparable store sales increased 2.5%, as compared to an increase of 5.5% in the prior year’s second quarter, driven by comparable average transaction count increase of 1.8% and comparable average ticket growth of 0.6%. Comparable store sales growth reflects continued strength in core year-round merchandise, including consumable, usable and edible (“C.U.E.”) products which significantly outpaced the chain average. This performance offset softness in demand for seasonal goods and declines in big-ticket items. Gross profit increased 9.3% to $1.51 billion from $1.39 billion in the prior year’s second quarter, and gross margin increased 69 basis points to 36.2% from 35.5% in the prior