BRENTWOOD, TN--(Marketwired - July 22, 2015) - Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retail store chain in the United States, today announced financial results for its second quarter ended June 27, 2015.

Second Quarter Results
Net sales increased 11.9% to $1.77 billion from $1.58 billion in the prior year's second quarter. Comparable store sales increased 5.6% versus a 1.9% increase in the prior year period. The increase in comparable store sales was broad based and driven by increases in both traffic and ticket. Comparable store transaction count increased 4.2% and average ticket increased 1.3%. The comparable store sales increase benefited from a solid performance in seasonal items, including big ticket, and consumable, usable and edible (C.U.E.) products. Seasonal and big ticket items included riding lawn mowers and trailers. C.U.E. was driven principally by strong sales in pet and animal categories. These increases were partially offset by deflation.

Gross profit increased 13.6% to $625.3 million from $550.5 million in the prior year's second quarter. As a percent of sales, gross margin increased 50 basis points to 35.3%. The increase in gross margin resulted from strong price and markdown management, as well as lower fuel costs. These favorable items were offset in part by a change in mix to more big ticket items, which typically run below chain average margin.

Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 12.0% to $380.2 million. As a percent of sales, SG&A expenses were relatively flat to the prior year at 21.4%. Higher year-over-year incentive compensation was partially offset by improved leverage of advertising costs, as well as certain other fixed operating costs, due to the strong comparable sales growth.

Net income increased 14.9% to $153.3 million from $133.4 million and diluted earnings per share increased 17.9% to $1.12 from $0.95 in the second quarter of the prior year.

The Company opened 17 new stores and closed one store in the second quarter of 2015 compared to 23 new store openings and no store closures in the prior year's second quarter.

Greg Sandfort, President and Chief Executive Officer, stated, "We had a solid second quarter and were pleased with the sales trends during the quarter. Our merchandise, planning and store teams did an excellent job of managing assortments and driving strong sales and margins for the quarter. Once again, sales growth was broad based across all our merchandise categories and geographic regions and we saw growth in both traffic and ticket. Continued execution of our price and inventory management strategies contributed to healthy increases in gross margin. Looking ahead, we believe our marketing and merchandising initiatives, along with our strategic investments in the business, have us well positioned for the late summer and early fall selling season."

First Six Months Results
Net sales increased 12.2% to $3.10 billion from $2.77 billion in the first six months of 2014. Comparable store sales increased 5.7% versus a 2.0% increase in the first six months of 2014. Gross profit increased 13.0% to $1.07 billion from $946.8 million and gross margin increased 30 basis points to 34.5% of sales from 34.2% of sales in the first six months of 2014.

Selling, general and administrative expenses, including depreciation and amortization, increased 11.4% to $731.9 million, and decreased as a percent of sales to 23.6% compared to 23.7% for the first six months of 2014.

Net income increased 16.0% to $211.4 million from $182.2 million and net income per diluted share increased 18.5% to $1.54 from $1.30 for the first six months of 2014.

The Company opened 58 new stores and closed two stores in the first six months of 2015 compared to 55 new store openings and no store closures during the first six months of 2014.

Fiscal 2015 Outlook
Based on strong performance in the first half, the Company is raising its financial expectations for fiscal 2015. Net sales are now anticipated to range between $6.25 billion and $6.33 billion compared to the Company's previous expected range of $6.20 billion to $6.30 billion. Comparable store sales are now expected to increase 3.5% to 4.5% compared to prior expectation of an increase of 2.5% to 4.0%. The Company now anticipates net income will range from $3.00 to $3.08 per diluted share compared to previous guidance of $2.95 to $3.05 per diluted share. For the full year, the Company expects capital expenditures to range between $220 million and $230 million compared to its previous guidance of $240 million to $250 million. Capital expenditures include spending to support 110 to 115 new store openings and construction of a new Southwest distribution center in Casa Grande, Arizona scheduled to open in late fiscal 2015.

Conference Call Information
Tractor Supply Company will be hosting a conference call at 5:00 p.m. Eastern Time today to discuss the quarterly results. The call will be broadcast simultaneously over the Internet on the Company's website at TractorSupply.com and can be accessed under the link "Investor Relations." The webcast will be archived shortly after the conference call concludes and will be available through August 5, 2015.

Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast.

About Tractor Supply Company
At June 27, 2015, Tractor Supply Company operated 1,438 stores in 49 states. The Company's stores are focused on supplying the lifestyle needs of recreational farmers and ranchers and others who enjoy the rural lifestyle, as well as tradesmen and small businesses. Stores are located primarily in towns outlying major metropolitan markets and in rural communities. The Company offers the following comprehensive selection of merchandise: (1) equine, livestock, pet and small animal products, including items necessary for their health, care, growth and containment; (2) hardware, truck, towing and tool products; (3) seasonal products, including heating, lawn and garden items, power equipment, gifts and toys; (4) work/recreational clothing and footwear; and (5) maintenance products for agricultural and rural use.

Forward Looking Statements
As with any business, all phases of the Company's operations are subject to influences outside its control. This information contains certain forward-looking statements, including statements regarding sales and earnings growth, estimated results of operations, capital expenditures, marketing, merchandising and strategic initiatives and new store openings in future periods. These forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company's quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company's operations. These factors include, without limitation, general economic conditions affecting consumer spending, the timing and acceptance of new products in the stores, the timing and mix of goods sold, purchase price volatility (including inflationary and deflationary pressures), the ability to increase sales at existing stores, the ability to manage growth and identify suitable locations, failure of an acquisition to produce anticipated results, the ability to successfully manage expenses and execute our key gross margin enhancing initiatives, the availability of favorable credit sources, capital market conditions in general, the ability to open new stores in the manner and number currently contemplated, the impact of new stores on our business, competition, weather conditions, the seasonal nature of our business, effective merchandising initiatives and marketing emphasis, the ability to retain vendors, reliance on foreign suppliers, the ability to attract, train and retain qualified employees, product liability and other claims, changes in federal, state or local regulations, potential judgments, fines, legal fees and other costs, breach of information systems or theft of employee or customer data, ongoing and potential future legal or regulatory proceedings, management of our information systems, failure to develop and implement new technologies, the failure of customer-facing technology systems, business disruption including from the implementation of supply chain technologies, effective tax rate changes and results of examination by taxing authorities, the ability to maintain an effective system of internal control over financial reporting, changes in accounting standards, assumptions and estimates. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

^(a) Assumes average inventory cost, excluding inventory in transit.