Market Hit: Farm supplies retailer Tractor Supply (TSCO) recently reported sales growth of +4.3%, close to CE Transact implied reported growth of +4.6%, and below consensus of +5.9%.
In its recent earnings report, Tractor Supply management cited macroeconomic pressures continuing to weigh on consumer spending behavior, particularly in the lower-income cohorts. Consumer Edge data shows meaningful TSCO sales growth among higher-income shoppers, but it wasn’t enough to offset the weakness in the lower-income cohorts.
Total TSCO Sales Growth
Farm supplies retailer TSCO reported total sales growth of +4.3%, close to CE Transact implied reported growth of +4.3%, and below consensus of +5.9%.
TSCO Spend Growth by Income Cohort
The company mentioned inflation, higher credit card balances and the resumption of school loan payments which resulted in consumers spending more cautiously on discretionary and big-ticket items, particularly in the lower-income cohorts. CE U.S. data shows the greatest y/y growth in higher-income cohorts in the most recent quarter with weakness among lower-income TSCO shoppers.
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