Shares of Tractor Supply are in line to drop more than 5 percent Thursday morning following word from the company that second-quarter profits won't meet investors' expectations.
Executives with Brentwood-based Tractor Supply said the main culprits for the shortfall were slow sales of seasonal products — primarily in the company's Northern regions — as well as continued softness in its safe category and deflation. That pushed down same-store sales for the quarter to 1.9 percent from 7.2 percent a year earlier and 2.2 percent in the first three months of 2014. Earnings per share are expected to come in at 94 or 95 cents versus the Street's consensus estimate of $1.02, and full-year numbers will be at the low end of the company's guidance.
"Despite a solid sales trend in July to date, we cannot be assured at this point that spring seasonal sales will be fully realized," President and CEO Greg Sandfort said in a statement. "As a result, we believe that we will perform at the low end of our full-year guidance. By effectively managing inventory levels and working with our vendors to develop additional sales driving initiatives, we believe we are positioned to drive sales and provide great values to our customers in the back half of the year."
Tractor Supply shares (Ticker: TSCO) fell some 6 percent after hours Wednesday to about $58.50. Year to date, they're down more than 20 percent.
Tractor Supply will report its full Q2 numbers July 23.
POSTDATA: WARRANTY DEEDS