The rural lifestyle retailer's shares have risen 31% year to date, and are up 81% from their March low of $67.40.
Tractor Supply reported a strong set of earnings for its first-quarter 2020 report, and the company does not seem to be badly affected by the COVID-19 pandemic. Net sales rose 7.5% year over year to $1.95 billion, while comparable store sales increased 4.3% year over year. Although the company withdrew its guidance for the fiscal year 2020, it still managed to open 20 new Tractor Supply stores during the quarter, underscoring its steady growth.
Late last month, Tractor Supply provided updated guidance for its second quarter. The company registered record sales across its channels, product categories, and geographic regions. Its e-commerce business also experienced good growth, with many customers choosing the new contactless curbside delivery option to minimize person-to-person contact during this pandemic.
Net sales are forecast to grow 24% to 29% year over year, with comparable store sales growth of 20% to 25%. The company is also relaunching its website, which should enable the business to enjoy rapid digital growth by using modern web architecture. Tractor Supply is shaping up to be one of the more resilient consumer companies, with consistent demand for its goods even during a crisis.
The company plans to build on its strong momentum by launching its first mobile app in late June. This app will include Tractor Supply's Neighbor's Club loyalty program with personalized features, allowing for a more intuitive shopping experience for users. It will also integrate contactless curbside pickup for the "Buy Online, Pickup in Store" service.
More than 70% of the company's e-commerce traffic currently comes from mobile apps. The planned launch of this new app is thus timely, as it allows Tractor Supply to capture a larger customer base and also makes it easier for customers to shop online using their smartphones. Investors can probably look forward to a stronger set of numbers once the app officially launches.