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Brentwood-based Tractor Supply Company (NASDAQ: TSCO), the largest retail farm and ranch store chain in the United States, announced financial results for its first fiscal quarter ending March 26.

Net sales increased 17.7% to $836.6 million from $710.9 million in the prior year's first quarter. Same-store sales increased 10.7%, compared to a 2.8% increase in the prior-year period.

The same-store sales increase was broad-based geographically and across all major product categories.

"We are delighted with our record first quarter results and start to 2011 as we continue to experience broad-based strength across the organization,"  said Jim Wright, chairman and CEO. "As a result, we achieved our fourth consecutive quarter of double-digit sales and earnings growth.

"We enhanced our merchandise management across categories and regions, maintained a prudent approach to expenses, and experienced greater productivity from new stores. Through great planning and execution, we believe we are well-positioned for the important spring selling season."

Consumable, usable and edible (CUE) products -- principally animal and pet-related merchandise -- continued to perform well, company officials said. Seasonal merchandise also experienced solid sales during the quarter.

Gross margin increased 18.5% to $273.6 million, or 32.7% of sales, compared to $230.9 million, or 32.5% of sales, in the prior year's first quarter. The increase in gross margin reflects improved direct product margin, partially offset by increased transportation costs. The improvement in direct margin resulted primarily from strategic sourcing, solid inventory allocation, effective retail price management and strong sell-through of products, which minimized markdowns.

Selling, general and administrative expenses, including depreciation and amortization, improved to 29.3% of sales for the first quarter compared to 30.2% of sales in the prior year's first quarter. The improvement as a percent of sales was primarily attributable to strong same-store sales.

Tractor Supply's net income for the quarter was $18.3 million, or $0.24 per diluted share, compared to net income of $10.6 million, or $0.14 per diluted share, in the first quarter of the prior year. All references to shares outstanding and per-share amounts reflect a two-for-one stock split that was effective on September 2, 2010.

The company opened 26 stores in the first quarter compared to opening 19 stores and closing one store in the prior year's first quarter.

Based on strong performance in the first quarter, Tractor Supply raised its financial expectations for fiscal 2011. Net sales are anticipated to range from $4.04 billion to $4.11 billion compared to the company's previously expected range of $4.00 billion to $4.07 billion. Same store sales for the year are now expected to increase 3.5% to 5.0% compared to the original expectation of an increase of 2.5% to 4.5%. The Company now anticipates net income to range from $2.62 to $2.70 per diluted share compared to its previous guidance of $2.54 to $2.62 per diluted share.

"With a solid start to this year, we are confident we are taking the right steps to grow and improve the company," Wright said. "We are building on our momentum while executing against our plans and investing in the business, which we believe will enable us to continue delivering sustainable growth.

"We are driving our top line through key merchandising initiatives while also enhancing gross margin through inventory management, strategic sourcing, private brands and price optimization. Our balance sheet remains strong and we look forward to another successful year."

Tractor Supply Company operates 1,027 stores in 44 states. Stores are located in towns outlying major metropolitan markets and in rural communities.