Benzinga - by Zacks, Benzinga Contributor.
Tractor Supply Company (NASDAQ: TSCO) has reached a blossoming milestone with the grand opening of its 500th Garden Center in Lowell, IN. This marks a surge in gardening popularity and highlights the company's commitment to rural lifestyles.
Just four years ago, in July 2020, Tractor Supply planted the first seed of its Garden Center initiative in Rome, GA. Since then, the program has blossomed remarkably. The company's footprint now spans across 41 states, boasting a network of 500 dedicated Garden Centers. This impressive growth doesn't stop here, Tractor Supply sets its sights even higher, aiming to add over 100 more Garden Centers by the end of 2024.
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Project Fusion Is Cultivating More Space for Growth TSCO's Project Fusion initiative plays a key role in its growth. The initiative incorporates dedicated Garden Centers into both new and existing stores. Each Garden Center boasts an additional 3,000 to 4,000 square feet of retail space, specifically focused on live goods such as fruit trees, herbs, vegetables and seasonal plants.
Seth Estep, Chief Merchandising Officer at Tractor Supply, highlights the customer demand that has fueled this expansion. Customers have expressed a strong desire for a wider range of lawn and garden products. The jump in gardening interest witnessed during the pandemic continues to blossom and the company is committed to supporting its customers' green thumbs through its expanded Garden Centers.
Diverse Product Selection at Garden Centers Beyond the focus on live goods, Tractor Supply's Garden Centers offer a diverse selection of products. National brands like Scotts, Miracle-Gro and Bonnie Vegetables are available alongside seasonal decor and outdoor living products. This ensures that while Garden Centers provide a broader selection, all TSCO stores carry the essentials needed to start and maintain a garden.
The popularity of gardening is undeniable among its customer base. Nearly three-quarters of the company's customers plan to grow or maintain a garden this year, with vegetables and flowers being the most commonly planted items. This hobby is also attracting new enthusiasts, with a noteworthy 20% of customers having started gardening within the last five years.
It has been gaining from consistent market share expansion and positive customer trends. The company is focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. Shares of this Zacks Rank #2 (Buy) company have gained 29.1% in the past six months compared with the industry's 13% growth.
Other Solid Picks A few other top-ranked stocks are Canada Goose (NYSE: GOOS), The Gap, Inc. (NYSE: GPS) and Abercrombie & Fitch Co. (NYSE: ANF).
Canada Goose is a global outerwear brand. It sports a Zacks Rank #1 (Strong Buy), at present.
The Zacks Consensus Estimate for Canada Goose's current fiscal-year earnings indicates growth of 13.7% from the year-ago period's reported figures. GOOS has a trailing four-quarter average earnings surprise of 70.9%.
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It flaunts a Zacks Rank of 1, at present.
The consensus estimate for The Gap's current fiscal-year earnings and sales suggests a decline of 0.2% and 2.1%, respectively, from the year-earlier levels. GPS has a trailing four-quarter average earnings surprise of 202.7%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. It currently sports a Zacks Rank of 1. ANF has a trailing four-quarter average earnings surprise of 210.3%.
The Zacks Consensus Estimate for Abercrombie & Fitch's current fiscal-year earnings and sales implies growth of 43.6% and 10.4%, respectively, from the prior-year actuals.
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