Scarlett says the company plans to grow its number of units by 12%, adding 63 stores this year. Based in Brentwood, TN, the lifestyle needs supplier of recreational farmers and ranchers operates 547 stores in 34 states.
Scarlett says the company's motto is: "Work hard; have fun; make money." By implementing an incentive program for employees, and offering training programs through the company's Tractor Supply University, Scarlett says employee turnover has dropped by 50%.
With trained employees, who often start out as customers, Scarlett says the company is able to offer its clientele a knowledge that competitors often lack. For that reason, says Scarlett, Tractor Supply has moved past the ranks of Home Depot and Lowe's.
"We've seen a lot of evolutionary trends from our customers; they are more upscale," Scarlett says. Today, the biggest challenge with big-box chains is the financing programs they are able to offer, he says.
The company anticipates net sales for fiscal 2005 (a 53-week fiscal year) will range from $2,000 million to $2,025 million, an increase of 15% to 16.4% compared to fiscal 2004. This assumes a same-store sales increase of approximately 4% to 5% and the addition of 60 to 65 new stores.
Net income for the year is expected to range between $79.2 million and $80.8 million, or $1.89 to $1.93 per diluted share. This compares to fiscal 2004 net income of $64.1 million, or $1.57 per diluted share.
"We're a dominant player in a proven nitch, and there is a lot of room for growth," Scarlett says. "We are building the infrastructure ahead of growth and aligning our management; we're all in it for the long term."
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