* Q2 EPS $1.23 vs est $1.20
* Q2 rev $1.18 bln vs est $1.19 bln
* Sees FY11 EPS $2.75-$2.82 vs est $2.77
* Shares fall 10 pct
(Adds conference call, analyst comments, background in
By Arpita Mukherjee
July 20 Tractor Supply Co reported
quarterly sales that missed expectations after six straight
quarters of market-beating results and said it would combat
rising costs of cotton, grain and oil-based productsplans by
Retailers across the board have been forced to increase
prices to counter rising commodity costs.
"If we know (costs are) moving ... we'll start escalating
and moving prices up to where we believe it needs to be," a
company executive said on a call with analysts.
Suntrust Robinson Humphrey analyst David Magee said the
company will not struggle to pass on modest price increases to
Magee reckons investors were expecting a bigger beat and
that resulted in the company's shares being pulled down as much
as 10 percent in extended trade.
Shares of the Brentwood, Tennessee-based company
were trading down 4 percent at $68.00 in trading after the bell.
They had closed at $70.67 on Wednesday on Nasdaq.
Tractor Supply, which operates 1,043 stores in 44 states,
saw sales at stores open for at least one year increase 4.6
percent, compared with a 6.1 percent rise, last year.
For the second quarter, Tractor Supply, which competes with
Home Depot , Lowe's Cos and Wal-Mart Stores
in different segments, earned $1.23 a share, topping
analysts' expectations of $1.20 a share.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Viraj
Nair, Prem Udayabhanu)