: Tractor Supply Co. plans to expand stores in the U.S. even as quarterly earnings fall short

Tractor Supply Co.’ stock TSCO rose 1.4% premarket Thursday, after the company posted weaker-than-expected second-quarter earnings and lowered guidance, while unveiling plans to open more stores in the U.S.. The Brentwood, Tenn.-based rural lifestyle retailer posted net income of $421.2 million, or $3.83 a share, for the quarter, up from $396.5 million, or $3.53 a share, in the year-earlier period. Sales rose 7.2% to $4.18 billion. The FactSet consensus was for EPS of $3.92 and sales of $4.26 billion. “As has been well documented, U.S. consumer spending on goods is moderating,” Chief Executive Hal Lawton said in a statement. “Additionally, our business was further impacted by seasonal underperformance, particularly in June.” The company lowered its full-year guidance and said it now expects sales to range from $14.8 billion to $14.9 billion, down from prior guidance of $15.0 billion to $15.3 billion. It expects EPS of $10.20 to $10.40, down from prior guidance of $10.30 to $10.60. The company also announced it is targeting 3,000 stores in the U.S., up 200 locations from prior guidance. The company will accelerate its new store growth to about 90 stores a year starting in 2025 and will aim for 80 in 2024. It plans to enter sale-leaseback deals with some of its 117 existing stores to fund the new development. The stock has fallen 4.7% in the year to date, while the S&P 500 SPX has gained 19%.

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