Tractor Supply seasonal business weaker than expected, says Citi

Citi analyst Steven Zaccone says that based on weaker home improvement spending in June based on the firm’s credit card data, Tractor Supply’s seasonal lawn/garden business came in weaker than expected in Q2. Citi now models Q2 same-store-sales of up 4% versus a prior estimate of up 5.7% and the Street’s 5.2%. Ongoing weakness in big-ticket categories and choppy seasonal business will limit SSS upside, contends the firm. Citi trimmed estimates but continues to believe Tractor Supply is a “well-positioned, defensive retailer amidst the uncertain consumer backdrop.” The analyst keeps a Buy rating on the shares with a $250 price target.