Tractor Supply Company (NASDAQ:TSCO) Q1 2015 Earnings Conference Call - Final Transcript

Apr 22, 2016 • 05:00 pm ET


Tractor Supply Company (NASDAQ:TSCO) Q1 2015 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Tractor Supply Company's Conference Call to discuss First Quarter 2015 Results. [Operator Instructions] Please be advised that reproduction of this call, in whole or in part, is not permitted without written authorization of Tractor Supply Company. And as a reminder, this call is being recorded.

I would like to introduce your host for today's call, Christine Skold of Tractor Supply Company. Christine, please go ahead.

Christine Skold

Thank you, operator. Good afternoon, and thank you for joining us for Tractor Supply Company's quarterly earnings conference call.

Before we begin, let me reference the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. This call may contain forward-looking statements that are subject to significant risks and uncertainties, including the future operating and financial performance of the Company. Although the Company believes the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Important risk factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in the Company's filings with the Securities and Exchange Commission. The information contained in this call is accurate only as of the date discussed. Investors should not assume that statements will remain operative at a later time. Lastly, Tractor Supply Company undertakes no obligation to update any information discussed in this call.

I'm now pleased to introduce Greg Sandfort, Tractor Supply Company's, President and Chief Executive Officer. Greg, please go ahead.

Gregory Sandfort

Good afternoon, everyone, and thank you for joining us. On the call with me today are Tony Crudele, our EVP and Chief Financial Officer; Steve Barbarick, our EVP and Chief Merchandising and Marketing Officer; and Lee Downing, our EVP of Store Operations and Real Estate.

We're very pleased with our performance in the first quarter of 2015 and the ongoing trends within our business. Our comparable store sales for the quarter increased 5.7%, and our increase was once again driven by both traffic and ticket. Transaction counts increased 4.8%, while average ticket improved 80 basis points in the quarter. This was our 22nd consecutive quarter of positive comp store sales, and our 28th consecutive quarter of positive comp transaction counts.

Sales were balanced across the store and throughout the quarter, with all of our major merchandise categories and geographic regions delivering positive solid comps. Our merchandising and inventory management teams did an excellent job of managing assortments and flow of inventory to deliver strong sales for the quarter.

We have the right products at the right time to meet customer demand in both seasonal and everyday products. In seasonal, we made several strategic investments in heating, footwear and apparels that met strong demand in cold weather items in the northern tier of our stores.

Similarly, we have the right assortment of spring merchandise when the weather began to turn more in our Southern markets. This allowed us to meet the initial demand