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Tractor Supply Partners American Kennel to Expand Reach
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Tractor Supply Company (TSCO - Free Report) inked a multi-year deal with American Kennel Club in a bid to support dog owners of all breeds. Being one of the world’s largest pure bred dog registry, American Kennel’s association will help its customers access food, treats, toys, bedding and other accessories from Tractor Supply’s stores.
American Kennel’s customers will be notified about Tractor Supply’s offerings through emails, newsletters and promotions on AKC.TV digital streaming channel. Post the completion of this deal, Tractor Supply will become the Official Rural Lifestyle Partner of American Kennel.
Apart from pet products, the company provides essential items to customers. Further, the company offers convenient shopping facilities, including Buy Online/Pick Up In-Store, Same Day/Next Day Delivery, Curbside Pickup, Autoship and Free Standard Delivery. These options are accessible for customers who shop for $49 or more.
The company has been witnessing increased sales across its product categories, channels and geographic regions amid the ongoing coronavirus pandemic that led to robust comparable store sales (comps) growth in the first quarter of 2020. Further, the company had a strong start to the second quarter with solid demand for its products and services. Moreover, its online business is seeing improvement since the beginning of second-quarter 2020, driven by higher demand as customers opt for the newly-launched contactless curbside delivery and buy online, pickup at store options.
In a bid to meet the growing demand, Tractor Supply unveiled a redesigned e-commerce website along with a new mobile application, which will simplify the online purchasing process for consumers and enable it to better introduce digital capabilities in the market.
Encouragingly, net sales are expected to increase 24-29% year over year for second-quarter 2020. Comps are anticipated to rise 20-25% in the same time period. We note that this Zacks Rank #3 (Hold) stock has surged 57.7% in the past three months, outperforming the industry’s growth of 56.1%.
However, the company continues to face COVID-19 impacts, which led to nearly $7 million of incremental costs in the first quarter. Management withdrew its 2020 guidance. Going ahead, the company expects to witness elevated costs of about $30-$50 million in the second quarter related to appreciation bonus for its frontline team members, increased store labor and higher safety and cleaning costs.
Fastenal Co. (FAST - Free Report) , which presently flaunts a Zacks Rank #1, has an expected long-term earnings growth rate of 19%.
Lowes Companies (LOW - Free Report) , which presently carries a Zacks Rank #2 (Buy), has an expected long-term earnings growth rate of 15.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Tractor Supply Partners American Kennel to Expand Reach
Tractor Supply Company (TSCO - Free Report) inked a multi-year deal with American Kennel Club in a bid to support dog owners of all breeds. Being one of the world’s largest pure bred dog registry, American Kennel’s association will help its customers access food, treats, toys, bedding and other accessories from Tractor Supply’s stores.
American Kennel’s customers will be notified about Tractor Supply’s offerings through emails, newsletters and promotions on AKC.TV digital streaming channel. Post the completion of this deal, Tractor Supply will become the Official Rural Lifestyle Partner of American Kennel.
Apart from pet products, the company provides essential items to customers. Further, the company offers convenient shopping facilities, including Buy Online/Pick Up In-Store, Same Day/Next Day Delivery, Curbside Pickup, Autoship and Free Standard Delivery. These options are accessible for customers who shop for $49 or more.
The company has been witnessing increased sales across its product categories, channels and geographic regions amid the ongoing coronavirus pandemic that led to robust comparable store sales (comps) growth in the first quarter of 2020. Further, the company had a strong start to the second quarter with solid demand for its products and services. Moreover, its online business is seeing improvement since the beginning of second-quarter 2020, driven by higher demand as customers opt for the newly-launched contactless curbside delivery and buy online, pickup at store options.
In a bid to meet the growing demand, Tractor Supply unveiled a redesigned e-commerce website along with a new mobile application, which will simplify the online purchasing process for consumers and enable it to better introduce digital capabilities in the market.
Encouragingly, net sales are expected to increase 24-29% year over year for second-quarter 2020. Comps are anticipated to rise 20-25% in the same time period. We note that this Zacks Rank #3 (Hold) stock has surged 57.7% in the past three months, outperforming the industry’s growth of 56.1%.
However, the company continues to face COVID-19 impacts, which led to nearly $7 million of incremental costs in the first quarter. Management withdrew its 2020 guidance. Going ahead, the company expects to witness elevated costs of about $30-$50 million in the second quarter related to appreciation bonus for its frontline team members, increased store labor and higher safety and cleaning costs.
Stocks to Consider
The Kroger Co. (KR - Free Report) has an impressive long-term earnings growth rate of 5.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fastenal Co. (FAST - Free Report) , which presently flaunts a Zacks Rank #1, has an expected long-term earnings growth rate of 19%.
Lowes Companies (LOW - Free Report) , which presently carries a Zacks Rank #2 (Buy), has an expected long-term earnings growth rate of 15.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>