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Tractor Supply Offers Impressive Q2 View on Higher Demand
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Renowned rural lifestyle retail chain, Tractor Supply Company (TSCO - Free Report) informed that it has been witnessing increased sales across itsproduct categories, channels as well as geographic regions. Moreover, the company’s online business has been seeing improvement since the beginning of second-quarter 2020. This can be attributed to higher demand from customers as they opt for the newly launched contactless curbside delivery as well as buy online, pickup at store options.
Impressively, for second-quarter 2020 management expects net sales to increase between 24% and 29% year over year. Comparable store sales are anticipated to increase in the range of 20-25% in the same time period. Additionally, Tractor Supply is optimistic about its gross profit performance and expects to witness expansion of gross margin for the second quarter.
Further, management envisions earnings for the second quarter to be in the range of $2.45 to $2.65 per share. However, net additional operating expenses owing to the coronavirus pandemic are now anticipated to come in at the higher end of the company’s previously provided guidance of $30-$50 million.
Efforts Undertaken Amid the Pandemic
To meet customers growing demand, Tractor Supply revealed its investment plans to enhance customer shopping experience. In this regard, the company plans to unveil its redesigned e-commerce website along with a new mobile application. The website is expected to be launched during the second quarter. It is likely to simplify online purchasing process for its consumers and enable the company to better introduce new digital capabilities in the market. Moreover, the newly-designed mobile app is expected to be available for download by the end of June.
Apart from these, Tractor Supply is fully committed toward providing enhanced benefits to its workers amid the coronavirus outbreak. In this regard, management has pledged to offer $2 per hour bonus to all hourly team members till Jun 27 along with a $1,000 bonus to store managers. Also, among other moves the company plans to implement a permanent wage increment for Tractor Supply and Petsense team members in nearly 2,100 stores and eight distribution centers, effective Jun 28. Notably, the company has recruited more than4,000 employees for team member positions in the last six weeks to fulfill the growing demand.
Undoubtedly, Tractor Supply is leaving no stone unturned to ensure safety of customers visiting stores as well as its workers amid COVID-19 outbreak. The company is deploying a dedicated greeter at each outlet to create social distancing awareness, take care of customers inside stores and look after additional cleaning drives. The company fully understands the need of the hour and is assisting customers by expanding “Buy Online Same Day/Next Day Delivery” to all stores; executing contactless curbside delivery for “Buy Online, Pickup In Store”; and expediting roll out of contactless payment options.
We note that shares of this Zacks Rank #3 (Hold) company have surged 26.1% in the past three months against the industry’s decline of 3.1%.
Office Depot (ODP - Free Report) has a long-term earnings growth rate of 6.8% and a Zacks Rank #2 (Buy).
The Kroger Co. (KR - Free Report) has a long-term earnings growth rate of 4.9% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Tractor Supply Offers Impressive Q2 View on Higher Demand
Renowned rural lifestyle retail chain, Tractor Supply Company (TSCO - Free Report) informed that it has been witnessing increased sales across itsproduct categories, channels as well as geographic regions. Moreover, the company’s online business has been seeing improvement since the beginning of second-quarter 2020. This can be attributed to higher demand from customers as they opt for the newly launched contactless curbside delivery as well as buy online, pickup at store options.
Impressively, for second-quarter 2020 management expects net sales to increase between 24% and 29% year over year. Comparable store sales are anticipated to increase in the range of 20-25% in the same time period. Additionally, Tractor Supply is optimistic about its gross profit performance and expects to witness expansion of gross margin for the second quarter.
Further, management envisions earnings for the second quarter to be in the range of $2.45 to $2.65 per share. However, net additional operating expenses owing to the coronavirus pandemic are now anticipated to come in at the higher end of the company’s previously provided guidance of $30-$50 million.
Efforts Undertaken Amid the Pandemic
To meet customers growing demand, Tractor Supply revealed its investment plans to enhance customer shopping experience. In this regard, the company plans to unveil its redesigned e-commerce website along with a new mobile application. The website is expected to be launched during the second quarter. It is likely to simplify online purchasing process for its consumers and enable the company to better introduce new digital capabilities in the market. Moreover, the newly-designed mobile app is expected to be available for download by the end of June.
Apart from these, Tractor Supply is fully committed toward providing enhanced benefits to its workers amid the coronavirus outbreak. In this regard, management has pledged to offer $2 per hour bonus to all hourly team members till Jun 27 along with a $1,000 bonus to store managers. Also, among other moves the company plans to implement a permanent wage increment for Tractor Supply and Petsense team members in nearly 2,100 stores and eight distribution centers, effective Jun 28. Notably, the company has recruited more than4,000 employees for team member positions in the last six weeks to fulfill the growing demand.
Undoubtedly, Tractor Supply is leaving no stone unturned to ensure safety of customers visiting stores as well as its workers amid COVID-19 outbreak. The company is deploying a dedicated greeter at each outlet to create social distancing awareness, take care of customers inside stores and look after additional cleaning drives. The company fully understands the need of the hour and is assisting customers by expanding “Buy Online Same Day/Next Day Delivery” to all stores; executing contactless curbside delivery for “Buy Online, Pickup In Store”; and expediting roll out of contactless payment options.
We note that shares of this Zacks Rank #3 (Hold) company have surged 26.1% in the past three months against the industry’s decline of 3.1%.
Check These 3 Stocks
Sprouts Farmers Market (SFM - Free Report) has a long-term earnings growth rate of 4.4%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Office Depot (ODP - Free Report) has a long-term earnings growth rate of 6.8% and a Zacks Rank #2 (Buy).
The Kroger Co. (KR - Free Report) has a long-term earnings growth rate of 4.9% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>