On 14 Feb 2020, Tractor Supply Company (NASDAQ: TSCO) stock identified change of 11.53% away from 52-week low price and recently located move of -14.07% off 52-week high price. It has market worth of $11627.25M and dividend yield of 1.43%. TSCO stock has been recorded 4.55% away from 50 day moving average and -1.16% away from 200 day moving average. Moving closer, we can see that shares have been trading 3.72% off 20-day moving average.
Tractor Supply Company (TSCO) recently reported financial results for its fourth quarter and fiscal year ended December 28, 2019.
Fourth Quarter 2019 Highlights
Net sales increased 2.7% to $2.19B in the fourth quarter of 2019 from $2.13B in the fourth quarter of 2018. Comparable store sales increased 0.1% versus a raise of 5.7% in the previous year’s fourth quarter. The comparable store sales results included a raise in comparable average ticket of 1.8% and a decrease in comparable transaction count of 1.7%. The comparable store sales performance in the fourth quarter was primarily driven by strength in the consumable, usable and edible categories, which were generally in line with the Company’s expectations. This performance was offset by weakness in cold weather seasonal and holiday discretionary categories. Softness in the cold weather seasonal categories such as heating equipment and insulated outerwear were influenced by the unseasonably warm weather in December which was the sixth warmest in 125 years. Emergency response categories were negatively influenced as the Company cycled hurricane-related sales from the fourth quarter of 2018. In addition, holiday discretionary categories were pressured by six fewer selling days between Thanksgiving and Christmas contrast to last year, which had a greater impact on sales than the Company had anticipated.
Gross profit increased 3.6% to $741.8M from $716.3M, and gross margin rate increased 26 basis points to 33.8% from 33.6% in the previous year’s fourth quarter. The increase in gross margin was primarily attributable to a reduction in freight expense as a percent of net sales and, to a lesser extent, effective management of direct product margins.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 2.9% to $551.4M from $536.0M in the previous year’s fourth quarter. As a percent of net sales, SG&A expenses increased three basis points to 25.2% from 25.1% in the fourth quarter of 2018. The increase in SG&A as a percent of net sales was primarily attributable to deleverage in store personnel, occupancy and other costs, including depreciation, from the decrease in comparable store sales and incremental costs associated with the new distribution facility in Frankfort, NY. These SG&A increases were partially offset by a decrease in incentive compensation as well as disciplined cost management.
The effective income tax rate was 22.3% contrast to a rate of 22.2% in the previous year’s fourth quarter.
Net income was $144.2M, or $1.21 per diluted share, contrast to net income of $136.9M, or $1.11 per diluted share, in the fourth quarter of 2018.
The Company opened 30 new Tractor Supply stores and five new Petsense stores in the fourth quarter of 2019. Additionally, in the fourth quarter of 2019, the Company closed one Petsense store.
Fiscal 2019 Results
Net sales increased 5.6% to $8.35B from $7.91B in fiscal 2018. Comparable store sales increased 2.7% versus a 5.1% increase in fiscal 2018. Gross profit increased 6.3% to $2.87B from $2.70B, and gross margin increased by 22 basis points to 34.4% from 34.2%.
SG&A expenses, including depreciation and amortization, increased 6.4% to $2.13B, and as a percent of net sales, SG&A expenses increased to 25.5% contrast to 25.3% in fiscal 2018.
The effective income tax rate was 22.3% contrast to a rate of 22.1% in fiscal 2018.
For fiscal 2019, net income was $562.4M, or $4.66 per diluted share, contrast to $532.4M, or $4.31 per diluted share, in fiscal 2018. Not Including the after-tax impact of an executive transition contract in the third quarter of fiscal 2019 of about $2.3M, or $0.02 per diluted share, adjusted net income for fiscal 2019 was $564.7M, or $4.68 per diluted share.
The Company repurchased about 5.4M shares of its ordinary stock for $533.3M and paid quarterly cash dividends totaling $162.7M, returning $696.0M of capital to shareholders in fiscal 2019.
During fiscal 2019, the Company opened 80 new Tractor Supply stores and eight new Petsense stores and closed one Tractor Supply store and three Petsense stores.
The Services sector company, Tractor Supply Company noticed change of -0.09% to $98.17 along volume of 672722 shares in recent session compared to an average volume of 1428.33K. TSCO’s shares are at 1.28% for the quarter and driving a 2.50% return over the course of the past year and is now at 5.06% since this point in 2018.