Tractor Supply reported a net sales increase of 7.5% to $1.96 billion in the first quarter, with comp-store sales rising 4.3% vs. the 5% increase in the prior-year period. Gross profit increased 7.5% to $661.2 million.
Comp-store sales growth was primarily driven by consumable, usable and edible product categories, as well as solid demand for spring seasonal categories.
Despite the disrupted retail environment, the chain is still on track with its 2,500-store target, Lawton said, including its new store opening schedule for 2020. It opened 20 new Tractor Supply stores and closed one Del’s store in Q1.
“That said, given the practical realities created by the disruption of COVID-19, we believe there is potential for the timing of some of our new store openings to be delayed,” noted Kurt Barton, chief financial officer. “This could push some store openings to later in the year or even some into fiscal 2021.”
The company is also reprioritizing capital spend to accelerate such initiatives as buy-online-pickup-in-store, home delivery and contactless payments.
It’s also increased the number of mobile POS devices in its stores by 50% so that its associates can provide the necessary additional contactless fulfillment options.