Many millennials are leaving dense urban centers to settle in rural communities, and the relocation trend has been a boon to them Tractor supply, CEO Hal Lawton told CNBC Monday.
“We have gained market share with our core customer, but also with the new customer: the millennial customer,” Lawton said in a one-on-one interview with Jim Cramer.Bad money. “” We’re really seeing a rural revival led by millennials. “
After years of entering the housing market, the millennial generation, roughly between 25 and 40 years old, has done so emerged as a large proportion of first-time buyers in the past few years. It has resulted in increased demand for pet, poultry, gardening and self-employment products, Lawton said.
“We saw a 4 point change in revenue penetration last quarter with the millennial cohort,” he said.
Tractor Supply, which operates nearly 2,000 stores and employs 42,000 people, posted significantly stronger-than-expected first-quarter results on Thursday. The $ 22 billion agricultural equipment supplier saw sales in the same business grow 39%, contributing to sales and earnings of $ 2.79 billion per share of $ 2.79 billion . Sales increased by 53% compared to the pre-pandemic.
“There are absolutely structural trends that are driving our business that we believe will have a long-term trend,” said Lawton.
The stock closed at $ 190.95 on Monday, up 6% since the company announced it. Tractor Supply also raised its full year outlook.