Tractor Supply Company Reports Fourth Quarter and Full Year 2010 Results

Tractor Supply Company TSCO today announced financial results for its fourth fiscal quarter and fiscal year ended December 25, 2010. Additionally, the company provided its current outlook for fiscal 2011. Net sales increased 19.7% to $1.03 billion from $862.5 million in the prior year's fourth quarter. Same-store sales increased 13.1% compared to a 0.7% increase in the prior-year period. This same-store sales increase was broad-based and driven by continued strength in consumable, usable and edible (CUE) products, principally animal and pet-related merchandise. Seasonal items, predominantly heating and insulated outerwear, also performed well during the quarter. Gross margin increased 18.6% to $336.9 million, or 32.6% of sales, compared to $284.2 million, or 32.9% of sales, in the prior year's fourth quarter. The decline in gross margin percentage primarily resulted from higher transportation costs and mix of merchandise, partially offset by improved direct product margin. The ongoing direct product margin improvement resulted from strategic sourcing, inventory management, and more effective pricing.