July 24 - Tractor Supply TSCO.O on Thursday reported second-quarter revenue that edged past Wall Street estimates, aided by sales from new stores, and as demand for some of its farming equipment remained resilient in the face of macroeconomic uncertainties.
The company's shares were up about 5% in premarket trading after it also maintained its annual sales and profit targets, betting on demand for its year-round products such as livestock feed and other affordable farm equipment.
Products such as pet food, livestock feed and animal health supplies are considered essential by Tractor Supply's largely rural customer base, making them less sensitive to shifts in discretionary spending.
Tractor Supply's comparable store sales rose 1.5% in the second quarter ended June 28, topping expectations of a 0.54% rise.
This helped the company post a 4.5% rise in second quarter sales at $4.44 billion, ahead of the average of analysts' estimates of $4.40 billion, according to data compiled by LSEG.
Tractor Supply, which sells products ranging from pet food and lawn mowers to tractor components, opened 24 new stores during the quarter.
It currently operates more than 2,300 locations and has been ramping up store opening to reach a larger consumer base at a time when economic uncertainties are leading to choppy demand for pricier discretionary items.
The retailer is also adding its garden centers to more stores to attract shoppers for seasonal categories. Its second quarter sales were also helped by strong demand for seasonal spring products, the company said.
The company, which had cut its annual profit forecast three months ago, reaffirmed its targets for fiscal 2025 on Thursday, and said its largely U.S.-sourced product base should help navigate shifting tariff policies.
The company posted a profit of 81 cents per share during the quarter, beating estimates by 1 cent.
(Reporting by Anshi Sancheti and Juveria Tabassum in Bengaluru; Editing by Leroy Leo)
((Juveria.Tabassum@thomsonreuters.com))
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