Shares of Tractor Supply Company (NASDAQ:TSCO) fell -2.78% of the stock market on 01-28-2k19 (Thursday) to reach at $149.44 during previous trading session. The company has experienced volume of 2,115,557 shares while on average the company has a capacity of trading 1.29M share. Total volume is the number of shares or deals that point towards the overall activity of a security or market for a given period.
Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, today announced financial results for its fourth quarter and fiscal year ended December 26, 2020.
Fourth Quarter 2020 Highlights
Net sales increased 31.3% to $2.88 billion in the fourth quarter of 2020 from $2.19 billion in the fourth quarter of 2019. Comparable store sales increased 27.3% versus an increase of 0.1% in the prior year’s fourth quarter. The COVID-19 pandemic continued to have a significant, positive impact on consumer demand in the fourth quarter of 2020 across all of the Company’s major product categories as customers focused on the care of their homes, land and animals. Comparable store sales for the fourth quarter 2020 were driven by comparable average transaction count and ticket growth of 14.3% and 13.0%, respectively. The comparable store sales results also reflect a strong demand for everyday merchandise, including consumable, usable and edible products, and robust growth for seasonal categories. All geographic regions of the Company had robust comparable store sales growth. In addition, the Company’s e-commerce sales experienced triple-digit percentage growth for the third consecutive quarter.
Gross profit increased 34.2% to $995.5 million from $741.8 million in the fourth quarter of 2019, and gross margin rate increased 75 basis points to 34.6% from 33.8% in the prior year’s fourth quarter. The increase in gross margin was primarily attributable to a lower depth and frequency of sales promotions and less clearance activity, partially offset by higher transportation costs as a percent of net sales.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization and asset impairment, increased 47.1% to $811.1 million from $551.4 million in the fourth quarter of 2019. As a percent of net sales, SG&A expenses increased 302 basis points to 28.2% from 25.2% in the prior year’s fourth quarter. The fourth quarter of 2020 results include non-cash impairment charges for the Petsense business of $74.1 million due primarily to a strategic reassessment of the business and a decision to reduce the number of new store openings planned over the long term and, to a lesser extent, the impairment of long-lived assets at underperforming locations. On an adjusted basis excluding the impact of the discrete impairment charges, SG&A expenses increased 33.7% to $737.0 million, or 46 basis points to 25.6% as a percent of net sales for the fourth quarter of 2020. The increase in adjusted SG&A as a percent of net sales was primarily attributable to incremental costs related to the COVID-19 pandemic, increased incentive compensation due to record sales and profit performance in the quarter with the majority allocated to the store teams, and investments in strategic initiatives. Additional costs incurred due to the COVID-19 pandemic include appreciation bonuses to Team Members in the Company’s stores and distribution centers as well as additional labor hours and supply costs dedicated to cleaning and sanitation to enhance the health and safety of Team Members and customers.
The effective income tax rate was 23.0% compared to a rate of 22.3% in the prior year’s fourth quarter.
Net income was $135.9 million, or $1.15 per diluted share, compared to net income of $144.2 million, or $1.21 per diluted share, in the fourth quarter of 2019. On an adjusted basis, net income was $193.2 million, or $1.64 per diluted share, in the fourth quarter of 2020.
The Company opened 19 new Tractor Supply stores and three new Petsense stores and closed four Petsense stores in the fourth quarter of 2020.
Fiscal 2020 Results
Net sales increased 27.2% to $10.62 billion in fiscal 2020 from $8.35 billion in fiscal 2019. Comparable store sales increased 23.1% versus a 2.7% increase in fiscal 2019. Gross profit increased 31.0% to $3.76 billion from $2.87 billion, and gross margin increased by 104 basis points to 35.4% from 34.4%.
SG&A expenses, including depreciation and amortization and asset impairment, increased 29.9% to $2.76 billion, and as a percent of net sales, SG&A expenses increased to 26.0% compared to 25.5% in fiscal 2019. On an adjusted basis excluding the impact of the discrete impairment charges, SG&A expenses increased 26.4% to $2.69 billion, or 25.3% as a percent of net sales in fiscal 2020.
The effective income tax rate was 22.6% compared to a rate of 22.3% in fiscal 2019.
For fiscal 2020, net income was $749.0 million, or $6.38 per diluted share, compared to $562.4 million, or $4.66 per diluted share, in fiscal 2019. On an adjusted basis, net income was $806.2 million, or $6.87 per diluted share, for fiscal 2020.
The Company repurchased approximately 3.4 million shares of its common stock for $343.0 million and paid quarterly cash dividends totaling $174.6 million, returning $517.6 million of capital to shareholders in fiscal 2020.
During fiscal 2020, the Company opened 80 new Tractor Supply stores and nine new Petsense stores and closed one Tractor Supply store and seven Petsense stores.
Tractor Supply Company (NASDAQ:TSCO) holds the market capitalization of $17.36B along with 116.34M outstanding shares. During the last trade, stock’s minimum price has been reached out at $145.49 while the maximum trading price moved at $155.44.
Earnings-per-Share (EPS) is the portion of a Tractor Supply Company profit that is allocated to each outstanding share of its common stock. It is calculated by taking the difference between a company’s net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding.
The EPS of TSCO was strolling at 6.44, measuring its EPS growth this year at 8.00%. As a result, the company has an EPS growth of -3.20% for the coming year.
Presently the stock price is moving 133.90% off from the highest level of twelve months and -7.08% above from twelve months low.
Tractor Supply Company (NASDAQ:TSCO) marked 52-week highest price level of $160.83 on Apr 20, 2021 and 52-week lowest price level of $63.89 on Apr 25, 2021.
As of current trade, Tractor Supply Company (NASDAQ:TSCO) has shown weekly downbeat performance of -3.70%. Its six months performance indicated a bullish 2.74% movement while its yearly performance reflected a positive trend of 57.27%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 6.30%.
Shares of Tractor Supply Company (NASDAQ:TSCO) currently have an ABR of 2.10, derived from a total of 20 opinions. The company’s price sits 4.44% above from its 50-day moving average of $147.90 and 11.00% above from the stock’s 200-day moving average of $143.40. The company has Relative Strength Index (RSI 14) of 49.68 along with Average True Range (ATR 14) of 4.45. Its weekly and monthly volatility is 4.17%, 2.86% respectively. The company’s beta value is at 1.02.
Tractor Supply Company currently has a PEG ratio of 1.48 where as its P/E ratio is 23.20. The company’s price to sales ratio for trailing twelve months is 1.75 and price to book ratio for most recent quarter is 9.27, whereas price to cash per share for the most recent quarter is 15.61.
Tractor Supply Company (NASDAQ:TSCO)’s price to free cash flow for trailing twelve months is 17.39. Its quick ratio for most recent quarter is 0.60 along with current ratio for most recent quarter of 1.50.
Total debt to equity ratio of the company for most recent quarter is 0.50 whereas long term debt to equity ratio for most recent quarter is 0.30.
Tractor Supply Company (NASDAQ:TSCO) has a Return on Assets of 12.20%. The company currently has a Return on Equity of 46.70% and Return on Investment of 29.10%.