Tractor Supply (TSCO 66.20, -4.27) has surrendered 6.1% after issuing below-consensus guidance for the first quarter.
The specialty retailer issued guidance for below-consensus first quarter earnings between $0.45 and $0.46 per share on revenue of $1.56 billion, which is just below market expectations.
While first quarter net sales grew 6.6%, comparable store sales decreased 2.2% year-over-year after increasing 4.9% one year ago. There was one extra week of sales in last year's quarter, but when adjusting for that difference, comparable sales still grew 2.6% in the first quarter of 2016. Comparable transactions decreased 1.4% while average ticket declined 0.9%.
Lower sales of seasonal merchandise and the impact of deflation were responsible for this year's decline in comparable sales. Underperformance was most notable in the Northern region. The declines were partially offset by growth in the Livestock and Pet categories.
With today's decline, shares of Tractor Supply trade at levels not seen since the first half of November. The stock is down 12.7% so far in 2017.