Tractor Supply Company Reports Second Quarter 2026 Financial Results; Updates Fiscal Year 2026 Outlook

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today reported financial results for its second quarter ended June 27, 2026.

• Net Sales Increased 2.3% to $4.54 Billion; Comparable Store Sales Decreased 1.5%
• Company Recorded Charges Related to a Restructuring of the Petsense Business and Costs Associated with the VIP Petcare Acquisition
• Diluted Earnings per Share (“EPS”) of $0.69 and Adjusted Diluted EPS of $0.81¹

“The Tractor Supply business model demonstrated its strength and durability during the second quarter. Positive comparable store sales in April and June were more than offset by unusually adverse conditions in May, which drove second quarter results below our expectations. While we are not satisfied with our performance, we believe there are discrete headwinds impacting the majority of our end markets. Our core customer remains highly engaged, our needs-based businesses continue to perform well, and our competitive position remains strong. Tractor Supply has successfully navigated many economic cycles throughout our 88-year history, and we remain confident that the long-term demand drivers supporting our business remain intact. I want to thank our Team Members for their continued dedication to serving our customers every day,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Lawton continued, “We are updating our fiscal 2026 outlook to reflect our year-to-date performance and expectations for the balance of the year. We are responding with urgency by strengthening our companion animal business, reinforcing our value position and improving productivity across the business. At the same time, we are sharpening our strategic focus, evaluating where we allocate capital and resources and making disciplined choices that we believe will strengthen Tractor Supply and create long-term shareholder value. The actions we are taking are designed to improve performance over the balance of the year and further position the Company for long-term success.”

Second Quarter 2026 Results

Net sales increased 2.3% to $4.54 billion from $4.44 billion in the second quarter of 2025. The increase in net sales was driven by new store openings, partially offset by the decline in comparable store sales. Comparable store sales decreased 1.5%, as compared to an increase of 1.5% in the prior year’s second quarter, reflecting comparable average transaction count decline of 1.7% and comparable average ticket increase of 0.2%. Comparable store sales were positive in April and June, with underperformance in May driving the decline for the quarter. May results were pressured by softness in seasonal categories, including big-ticket items, as well as lower spending in discretionary categories. While the Company's consumable, usable and edible categories remained resilient overall, companion animal continued to perform below the Company average, although trends improved through the quarter. Continued strength across the balance of the Company's consumable, usable and edible categories, along with growth in digital sales, partially offset these headwinds.

Gross profit increased 2.6% to $1.68 billion from $1.64 billion in the prior year’s second quarter. Gross margin rate was 37.1% compared to 36.9% in the prior year’s second quarter. The second quarter of 2026 results include an inventory write-down of $5.9 million related to the planned closure of approximately 75 Petsense stores. On an adjusted basis, gross profit increased 3.0% to $1.69 billion, or 24 basis points to 37.2% as a percent of net sales for the quarter. This increase was primarily attributable to disciplined product cost management and tariff-related benefits that more than offset higher freight expense and incremental investments to strengthen the Company's price-value position.

Selling, general and administrative (“SG&A”) expenses, including depreciation, amortization and impairment, increased 14.4% to $1.22 billion from $1.06 billion in the prior year’s second quarter. As a percent of net sales, SG&A expenses increased to 26.8% from 23.9% in the second quarter of 2025. The second quarter of 2026 results include impairment and other charges for the Petsense business of $65.8 million due primarily to a restructuring of the business as well as acquisition costs of $9.5 million for the acquisition of VIP Petcare. On an adjusted basis, SG&A expenses increased 7.3% to $1.14 billion, or 118 basis points to 25.1% as a percent of net sales for the quarter. The increase in adjusted SG&A as a percent of net sales was primarily attributable to deleverage from lower comparable store sales, as well as higher medical claims and legal settlement expenses.

Operating income decreased 19.2% to $467.1 million from $577.8 million in the second quarter of 2025. On an adjusted basis, operating income decreased 5.1% to $548.3 million.

The effective income tax rate was 19.8% compared to 23.2% in the second quarter of 2025, primarily reflecting the timing of certain tax planning initiatives, as well as the one-time charges associated with the restructuring of the Petsense business and the acquisition costs associated with VIP Petcare.

Net income decreased 16.1% to $360.7 million from $430.0 million in the second quarter of 2025. Diluted EPS decreased 14.9% to $0.69 compared to $0.81 in the second quarter of 2025. On an adjusted basis, net income was $423.5 million, or $0.81 per diluted share.

The Company repurchased approximately 3.9 million shares of its common stock for $135.3 million and paid quarterly cash dividends totaling $125.6 million, returning a total of $260.9 million of capital to shareholders in the second quarter of 2026.

The Company opened 28 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the second quarter of 2026.

Financial Outlook

Based on year-to-date performance and the Company’s outlook, Tractor Supply is updating its financial guidance for fiscal year 2026.

Adjusted operating margin, adjusted net income and adjusted diluted EPS are non-GAAP financial measures that exclude the Petsense impairment and VIP Petcare acquisition costs. The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort.

Given the revised 2026 outlook, the Company is withdrawing the long-term financial framework introduced at its December 2024 Investor Day. Tractor Supply remains confident in its long-term market opportunity and expects to provide an updated long-term financial framework in conjunction with its fourth quarter 2026 earnings announcement.

Conference Call Information

Tractor Supply Company will hold a conference call today, Thursday, July 23, 2026 at 10 a.m. ET. The call will be webcast live at IR.TractorSupply.com.

Please allow extra time prior to the call to visit the site and download the streaming media software required to access the webcast.

A replay of the webcast will also be available at IR.TractorSupply.com shortly after the call concludes.

About Tractor Supply Company

For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 290 on the Fortune 500. The Company’s more than 54,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.

As part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, Allivet, a leading online pet and animal pharmacy, and VIP Petcare, the largest provider of mobile veterinary care in the U.S., in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.

As of June 27, 2026, the Company operated 2,463 Tractor Supply stores in 49 states and 209 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, including statements regarding market share gains, value creation, customer trends, new stores and distribution centers, store closures, property development plans, return of capital, financial guidance for fiscal 2026, including net sales, comparable store sales, operating margin rates, adjusted operating margin rates, net income, adjusted net income, earnings per diluted share, adjusted earnings per diluted share, and share repurchases, and expectations regarding a future long-term financial framework. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “will,” “intend,” “would,” “expect,” “continue,” “believe,” “anticipate,” “optimistic,” “forecasted” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to factors outside of our control. These factors include, without limitation, the impact of the recent and potential future tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports on Form 10-K and other filings with the Securities and Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, the Company’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with U.S. GAAP. The Company believes this information is useful in providing period-to-period comparisons of the results of our continuing operations.

Mary Winn Pilkington (615) 440-4212
Rena Clayton Rolfe (615) 647-1561
investorrelations@tractorsupply.com