Tractor Supply Company (TSCO) has reported a 10.87 percent fall in profit for the quarter ended Apr. 01, 2017. The company has earned $60.31 million, or $0.46 a share in the quarter, compared with $67.67 million, or $0.50 a share for the same period last year.

Revenue during the quarter grew 6.56 percent to $1,564.08 million from $1,467.80 million in the previous year period. Gross margin for the quarter contracted 55 basis points over the previous year period to 33.13 percent. Total expenses were 93.84 percent of quarterly revenues, up from 92.63 percent for the same period last year. That has resulted in a contraction of 121 basis points in operating margin to 6.16 percent.

Operating income for the quarter was $96.36 million, compared with $108.20 million in the previous year period.

Greg Sandfort, chief executive officer, stated, "Due to the challenging weather conditions, we were unable to offset the strong seasonal performance from last year's first quarter. As the weather has normalized over the past few weeks, we are encouraged with how the customer has responded and believe there is significant spring business ahead of us. Looking ahead, we know the retail landscape is changing very quickly, and we know our customers' expectations are changing as well. With this in mind, we continue to execute against the strategic initiatives that we believe will drive sales and customer service as well as maintain our competitive positioning."

The company has spent $34.86 million cash to meet investing activities during the quarter as against cash outgo of $36.71 million in the last year period. It has incurred net capital expenditure of $34.86 million on net basis during the quarter, down 5.06 percent or $1.86 million from year ago period.

Cash flow from financing activities was $195.30 million for the quarter as against cash outgo of $18.24 million in the last year period.

Cash and cash equivalents stood at $72.70 million as on Apr. 01, 2017, down 2.42 percent or $1.80 million from $74.50 million on Mar. 26, 2016.

 Debt increases substantiallyTractor Supply Company has witnessed an increase in total debt over the last one year. It stood at $638.30 million as on Apr. 01, 2017, up 135.12 percent or $366.82 million from $271.48 million on Mar. 26, 2016. Total debt was 21.45 percent of total assets as on Apr. 01, 2017, compared with 10.59 percent on Mar. 26, 2016. Debt to equity ratio was at 0.46 as on Apr. 01, 2017, up from 0.20 as on Mar. 26, 2016. Interest coverage ratio deteriorated to 34.70 for the quarter from 96.17 for the same period last year.