Tractor Supply (TSCO, Financial) shares also rallied as the Company saw a sudden and striking acceleration in revenue and earnings growth. As the COVID-19 pandemic has evolved in the U.S., consumers have reallocated budgets away from travel and entertainment, and shifted spending toward both land and home improvement retail, which is the core value proposition of Tractor Supply offerings. For the quarter ending in June, the Company guided to over +20% revenue growth and a staggering +40% earnings per share growth, against what appears to be one of the worst macroeconomic backdrops in decades. Due to the Company’s unique positioning– catering to rural landowners – the Company should generate attractive growth and returns for the foreseeable future.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds second-quarter 2020 shareholder letter.
