- Net sales increased 2.3% year over year to $4.54 billion, while comparable store sales declined 1.5%.
- Net income decreased 16.1% to $360.7 million, with diluted earnings per share falling to $0.69 from $0.81 a year earlier.
- Results included charges related to the restructuring of the Petsense business and costs associated with the acquisition of VIP Petcare.
- The company updated its fiscal 2026 guidance, lowering expectations for comparable store sales, earnings and operating margin, and withdrew its previously announced long-term financial framework.
Tractor Supply Company reported second-quarter fiscal 2026 financial results showing modest revenue growth alongside lower earnings and updated full-year guidance.
Net sales increased 2.3% to $4.54 billion for the quarter ended June 27, 2026, compared with $4.44 billion in the prior-year period. The increase was driven by new store openings, partially offset by a 1.5% decline in comparable store sales. Comparable transaction counts decreased 1.7%, while average ticket increased 0.2%. The company said comparable sales were positive in April and June but declined in May due to weaker performance in seasonal and discretionary merchandise categories.
Earnings Impacted by Petsense Restructuring and VIP Petcare Acquisition
Gross profit increased 2.6% to $1.68 billion, with gross margin improving to 37.1% from 36.9% in the prior-year quarter. Results included a $5.9 million inventory write-down related to the planned closure of approximately 75 Petsense stores. On an adjusted basis, gross margin increased to 37.2%.
Selling, general and administrative expenses increased 14.4% to $1.22 billion. The company reported $65.8 million in impairment and restructuring charges related to the Petsense business, along with $9.5 million in acquisition costs associated with the purchase of VIP Petcare. Adjusted SG&A expenses increased 7.3% year over year.
Operating income declined 19.2% to $467.1 million, while adjusted operating income decreased 5.1% to $548.3 million. Net income totaled $360.7 million, down 16.1% from the prior year, and diluted earnings per share declined to $0.69 from $0.81. Adjusted diluted earnings per share were $0.81.
During the quarter, Tractor Supply repurchased approximately 3.9 million shares for $135.3 million and paid $125.6 million in quarterly dividends, returning a total of $260.9 million to shareholders. The company also opened 28 new Tractor Supply stores and three new Petsense by Tractor Supply locations.
Company Revises Fiscal 2026 Guidance
Based on year-to-date performance, Tractor Supply updated its financial outlook for fiscal 2026.
- Net sales growth of 2.5% to 3.5%.
- Comparable store sales ranging from down 1% to flat.
- Operating margin of 8.0% to 8.3%.
- Adjusted operating margin of 8.5% to 8.8%.
- Net income of $930 million to $990 million.
- Adjusted net income of $990 million to $1.05 billion.
- Diluted earnings per share of $1.78 to $1.88.
- Adjusted diluted earnings per share of $1.90 to $2.00.
The company also withdrew the long-term financial framework introduced during its December 2024 Investor Day and said it expects to provide an updated long-term framework with its fourth-quarter 2026 earnings announcement.
This article contains forward-looking statements based on information provided by Tractor Supply Company. Actual results may differ materially due to risks and uncertainties described in the company’s filings with the U.S. Securities and Exchange Commission.
Information sourced from the company’s earnings release.
