Tractor Supply reported second quarter net sales growth of 35% to $3.18 billion, up from $2.35 billion last year. The company also reported a 30.5% increase in comparable store sales and triple-digit growth in e-commerce sales, according to its second quarter earnings report.
The company noted that it introduced new technology and services, including curbside pickup, same day and next day delivery, and its first mobile app.
- The retailer is also rolling out contactless payments, expanding its in-store Wi-Fi capabilities and is improving its ship-from-store fulfillment operations, per the company's earnings call.
Though Tractor Supply reported a strong second quarter, the company acknowledged that the impact of COVID-19 on the rest of its year remains unclear. In the quarter, the retailer experienced coronavirus-related costs of approximately $55 million, including paying front line staffers, increasing employees' hours and higher supply costs for cleaning and sanitation across all its stores.
Looking ahead, the company is bracing itself for multiple uncertainties such as the likelihood of a second-wave outbreak, another possible stimulus package, customers' changing shopping patterns and expenses associated with operating as an essential retailer, Kurt Barton, Tractor Supply's CFO, said in a statement.
"Amid an extremely dynamic and uncertain environment, the Tractor Supply team is executing at a very high level," Barton said in a statement. "Against this backdrop, we are focused on supporting our team members, customers and communities and being excellent long-term stewards of the company," he added.
The company noted in June that it was launching its debut mobile app and now appears to be continuing its investments in technology. Its e-commerce growth, which the company said increased significantly as a percentage of overall sales, echoes a broader shift toward online spending.
Tractor Supply's decision to improve its Wi-Fi in stores was tied to the implementation of contactless payments and mobile point-of-sale hardware, the retailer's president and CEO Hal Lawton said during an earnings call with analysts. Other retailers have also had to enhance their in-store internet connectivity to allow for contactless transactions.