All merchandise categories delivered higher comparable store sales, as did all geographic regions. The Gross profit jump of 8.8% was, however, diminished by gross margin falling 16 basis points to 34.7%, due to an increase in freight expense on higher carrier rates and increased diesel fuel prices. Tractor Supply opened 23 new Tractor Supply stores and seven new Petsense stores in the third quarter of 2018.
Outlook
The company updated its guidance for fiscal 2018, on better-than-expected results for the first 9 months.
Net sales is now expected to be between $7.84 billion and $7.87 billion generating net income of $522-528 million on comparable store sales growth between 4% and 4.5%. Earnings for the fiscal year is now seen at $4.23-4.27 per diluted share.