Analysts: Tractor Supply tailwinds are still there

A pair of analysts say investors should look to add to their Tractor Supply positions after the retailer’s leaders reported strong second-quarter results but also said gross margins will likely tick down in what remains of 2021.

Tractor Supply CEO Hal Lawton and CFO Kurt Barton on Monday said the Brentwood-based company produced net income of $370 million on sales of $3.60 billion — with comparable-store sales climbing 10.5 percent — in the three months ended June 30. Those numbers were 9 percent and 13 percent, respectively, higher than the marks of the same period of 2020. But Lawton and Barton said they are being somewhat cautious about the second half of the year, primarily because of higher transportation costs.