Tractor Supply Issues Soft Q2 Outlook; Shares Tumble
Shares of Tractor Supply Co. (NASDAQ: TSCO) fell more than five percent after hours Wednesday when the company issued a second-quarter profit warning, blaming weak sales of seasonal products and slower growth in same-store sales.
The retail farm supplier expects second-quarter earnings of $0.94 to $0.95 a share on sales of $1.58 billion. Wall Street is expecting $1.02 per share in earnings on sales of $1.6 billion.
Same-store sales increased by a lower-than-expected 1.9 percent, compared with 7.2 percent growth in the year-earlier period.
The company forecast an unchanged gross margin compared with a year ago on higher transportation and promotional costs.
Full-year results will be at the low end of previous guidance, according to Chief Executive Greg Sandfort.
"The challenging spring weather conditions we experienced in the first quarter persisted even later into the second quarter than the prior year," Sandfort said.
Tractor Supply shares recently changed hands at $57.62.
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