Tractor Supply (NASDAQ: TSCO) Q2 profit declines amid Petsense charges, 2026 outlook reset
Rhea-AI Filing Summary
Tractor Supply Company reported second-quarter 2026 net sales of $4.54 billion, up 2.3% from $4.44 billion, driven by new store openings, while comparable store sales fell 1.5% as weakness in seasonal and discretionary categories offset strength in consumable, usable and edible products and digital sales.
Gross profit rose to $1.68 billion with a gross margin of 37.1%, but SG&A deleveraging and $75.3 million of Petsense restructuring and VIP Petcare acquisition costs reduced operating income 19.2% to $467.1 million. Net income declined 16.1% to $360.7 million and diluted EPS decreased to $0.69; adjusted diluted EPS was $0.81.
The company repurchased approximately 3.9 million shares for $135.3 million and paid $125.6 million in dividends. For fiscal 2026, guidance calls for net sales growth of 2.5%–3.5%, comparable store sales between down 1% and flat, net income of $930–$990 million and adjusted EPS of $1.90–$2.00. Management withdrew its prior long-term financial framework and plans to provide an updated version with fourth-quarter 2026 results.
Positive
- Net sales grew 2.3% to $4.54 billion in Q2 2026, supported by new store openings and resilience in consumable, usable and edible categories and digital sales.
- Gross margin improved to 37.1% (37.2% adjusted), reflecting disciplined product cost management and tariff-related benefits despite higher freight and price investments.
- The company returned $260.9 million to shareholders in Q2 2026 through approximately 3.9 million share repurchases and $125.6 million of cash dividends.
Negative
- Profitability weakened: Q2 2026 net income fell 16.1% to $360.7 million and diluted EPS decreased 14.9% to $0.69, with operating margin down from 13.0% to 10.3%.
- Comparable store sales declined 1.5%, Petsense and VIP Petcare drove $75.3 million of impairment and acquisition costs, about 75 Petsense stores are planned for closure, and the company withdrew its prior long-term financial framework.
Filing Explained
The filing adds a planned Petsense footprint reduction and 75.3 million dollars of identified impairment, restructuring, and acquisition costs.
As an 8-K reporting a completed second-quarter event, the filing furnishes results and updated fiscal 2026 guidance; it also discloses a planned closure of approximately 75 Petsense stores, with a
The filing identifies total impairment and acquisition costs of
The updated fiscal 2026 outlook now presents reported net income of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Sales: $4.54 billion
Q2 2026 Comparable Store Sales: -1.5%
Q2 2026 Net Income: $360.7 million
+5 more
8 metrics
Q2 2026 Net Sales
$4.54 billion
Second quarter 2026 net sales, up 2.3% from $4.44 billion in Q2 2025
Q2 2026 Comparable Store Sales
-1.5%
Second quarter 2026 comparable store sales change versus a 1.5% increase a year earlier
Q2 2026 Net Income
$360.7 million
Second quarter 2026 net income, down 16.1% from $430.0 million in Q2 2025
Q2 2026 Diluted EPS
$0.69
Second quarter 2026 diluted EPS versus $0.81 in the prior-year quarter
Impairment and Acquisition Costs
$75.3 million
Total Petsense impairment and restructuring charges plus VIP Petcare acquisition costs in Q2 2026
Q2 2026 Share Repurchases
approximately 3.9 million shares
Common shares repurchased for $135.3 million in the second quarter of 2026
Fiscal 2026 Net Income Guidance
$930 million to $990 million
Updated full-year 2026 net income outlook
Fiscal 2026 Adjusted EPS Guidance
$1.90 to $2.00
Updated full-year 2026 adjusted diluted EPS guidance excluding Petsense and VIP Petcare costs
Key Terms
comparable store sales, adjusted diluted EPS, impairment expense, Inventory turns (annualized), +1 more
5 terms
comparable store sales financial
"Comparable store sales decreased 1.5%, as compared to an increase of 1.5%"
Comparable store sales measure the change in revenue generated by stores that have been open for a certain period, typically at least one year. It helps assess how well a business is growing by showing whether existing stores are attracting more customers and sales, rather than just counting new store openings. Investors use this figure to gauge the true health and performance of a company's core operations over time.
adjusted diluted EPS financial
"Diluted Earnings per Share (“EPS”) of $0.69 and Adjusted Diluted EPS of $0.81"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
impairment expense financial
"Impairment expense | 62,747 | | 1.38 | | — | | | —"
An impairment expense is a company’s recorded write-down when an asset—like equipment, a building, or intangible items such as goodwill—is found to be worth less than the value on the books. Think of it like recognizing that a used car you counted as an asset is now damaged and worth far less. It matters to investors because it lowers reported profits and asset values, can signal trouble with past investments, and often changes financial ratios that influence stock valuation.
Inventory turns (annualized) financial
"Inventory turns (annualized) | 3.33 | | 3.60 | | 3.15 | | 3.33"
non-GAAP financial measures financial
"The Company also uses certain non-GAAP financial measures that fall within"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Net sales: $4.54 billion · Guidance included
Fiscal quarter ended June 27, 2026
Net sales
$4.54 billion
Increased 2.3% from $4.44 billion in the second quarter of 2025
Comparable store sales
-1.5%
Versus an increase of 1.5% in the prior year’s second quarter
Operating income
$467.1 million
Decreased 19.2% from $577.8 million in the second quarter of 2025
Net income
$360.7 million
Decreased 16.1% from $430.0 million in the second quarter of 2025
Diluted EPS
$0.69
Decreased 14.9% from $0.81 in the second quarter of 2025
Guidance
Updated fiscal 2026 guidance: net sales growth of 2.5%–3.5%; comparable store sales between (1%) and flat; operating margin rate 8.0%–8.3%; adjusted operating margin rate 8.5%–8.8%; net income $930–$990 million; adjusted net income $990 million–$1.05 billion; EPS $1.78–$1.88; adjusted EPS $1.90–$2.00.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Tractor Supply (TSCO) perform in Q2 2026?
Tractor Supply reported Q2 2026 net sales of $4.54 billion, up 2.3%, but net income fell 16.1% to $360.7 million. Comparable store sales declined 1.5%, and diluted EPS decreased to $0.69, or $0.81 on an adjusted basis.
What guidance did Tractor Supply (TSCO) give for fiscal 2026?
For 2026, Tractor Supply projects net sales growth of 2.5%–3.5%, comparable store sales between down 1% and flat, net income of $930–$990 million, and adjusted diluted EPS of $1.90–$2.00, excluding Petsense impairment and VIP Petcare acquisition costs.
What were the key margin trends for Tractor Supply (TSCO) in Q2 2026?
Q2 2026 gross margin was 37.1%, slightly above 36.9% a year earlier, aided by product cost management and tariff benefits. Operating margin declined to 10.3% from 13.0% due to SG&A deleverage and $75.3 million in Petsense and VIP Petcare-related charges.
What restructuring actions is Tractor Supply (TSCO) taking with Petsense?
Tractor Supply recorded a $5.9 million inventory write-down tied to the planned closure of approximately 75 Petsense stores and total Petsense-related impairment and restructuring charges of $65.8 million as part of a broader business restructuring.
How many stores does Tractor Supply (TSCO) operate as of June 27, 2026?
As of June 27, 2026, Tractor Supply operated 2,463 Tractor Supply stores in 49 states and 209 Petsense by Tractor Supply stores in 23 states, for a consolidated total of 2,672 locations.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 23, 2026
TRACTOR SUPPLY COMPANY
__________________________________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615 ) 440-4000
| Not Applicable | ||
| (Former name or former address, if changed since last report.) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[☐ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[☐ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[☐ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[☐ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ((§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [☐ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [☐]
Item 2.02 Results of Operations and Financial Condition.
On July 23, 2026, Tractor Supply Company (the "Company") issued a press release reporting its results of operations for the second quarter ended June 27, 2026. Additionally, the Company updated guidance for the results of operations expected for the full fiscal year ending December 26, 2026.
A copy of the press release is furnished herewith as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit No. | Description | |||||||
| 99.1 | Press Release of Tractor Supply Company Dated July 23, 2026 | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Tractor Supply Company | |||||||||||
| By: | /s/ Kurt D. Barton | ||||||||||
| Name: Kurt D. Barton | |||||||||||
| Title: Executive Vice President - Chief Financial Officer and Treasurer | |||||||||||
TRACTOR SUPPLY COMPANY REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS; UPDATES FISCAL YEAR 2026 OUTLOOK | |||||
Brentwood, Tenn., July 23, 2026 - 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.
| l | Net Sales Increased 2.3% to $4.54 Billion; Comparable Store Sales Decreased 1.5% | ||||
| l | Company Recorded Charges Related to a Restructuring of the Petsense Business and Costs Associated with the VIP Petcare Acquisition | ||||
| l | Diluted Earnings per Share (“EPS”) of $0.69 and Adjusted Diluted EPS of $0.811 | ||||
1 See “Use and Reconciliation of Non-GAAP Financial Measures” below
“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.
| Updated | |||||
| Net Sales | +2.5% to +3.5% | ||||
| Comparable Store Sales | (1%) to flat | ||||
| Operating Margin Rate | 8.0% to 8.3% | ||||
| Adjusted Operating Margin Rate | 8.5% to 8.8% | ||||
| Net Income | $930 million to $990 million | ||||
| Adjusted Net Income | $990 million to $1.05 billion | ||||
| Earnings per Diluted Share | $1.78 to $1.88 | ||||
| Adjusted Earnings per Diluted Share | $1.90 to $2.00 | ||||
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 United States, 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.
(Financial tables to follow)
Consolidated Statements of Income
(Unaudited)
(in thousands, except per share and percentage data)
| For the Fiscal Three | For the Fiscal Six | ||||||||||||||||||||||||||||||||||||||||||||||
| Months Ended | Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||||||||||||||||||||
| Net | Net | Net | Net | ||||||||||||||||||||||||||||||||||||||||||||
| Sales | Sales | Sales | Sales | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 4,541,314 | 100.00% | $ | 4,439,729 | 100.00% | $ | 8,133,360 | 100.00% | $ | 7,906,682 | 100.00% | |||||||||||||||||||||||||||||||||||
| Cost of merchandise sold | 2,858,705 | 62.95 | 2,799,755 | 63.06 | 5,149,566 | 63.31 | 5,011,285 | 63.38 | |||||||||||||||||||||||||||||||||||||||
Gross profit | 1,682,609 | 37.05 | 1,639,974 | 36.94 | 2,983,794 | 36.69 | 2,895,397 | 36.62 | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,021,899 | 22.50 | 940,063 | 21.17 | 1,963,052 | 24.14 | 1,826,269 | 23.10 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 130,848 | 2.88 | 122,099 | 2.75 | 257,449 | 3.17 | 242,179 | 3.06 | |||||||||||||||||||||||||||||||||||||||
| Impairment expense | 62,747 | 1.38 | — | — | 62,747 | 0.77 | — | — | |||||||||||||||||||||||||||||||||||||||
Operating income | 467,115 | 10.29 | 577,812 | 13.01 | 700,546 | 8.61 | 826,949 | 10.46 | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | 17,103 | 0.38 | 17,983 | 0.41 | 36,211 | 0.45 | 37,624 | 0.48 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | 450,012 | 9.91 | 559,829 | 12.61 | 664,335 | 8.17 | 789,325 | 9.98 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 89,297 | 1.97 | 129,786 | 2.92 | 139,096 | 1.71 | 179,913 | 2.28 | |||||||||||||||||||||||||||||||||||||||
Net income | $ | 360,715 | 7.94% | $ | 430,043 | 9.69% | $ | 525,239 | 6.46% | $ | 609,412 | 7.71% | |||||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.69 | $ | 0.81 | $ | 1.00 | $ | 1.15 | |||||||||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.69 | $ | 0.81 | $ | 1.00 | $ | 1.14 | |||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 523,729 | 530,331 | 525,068 | 531,030 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 524,615 | 532,205 | 526,416 | 533,152 | |||||||||||||||||||||||||||||||||||||||||||
| Dividends declared per common share outstanding | $ | 0.24 | $ | 0.23 | $ | 0.48 | $ | 0.46 | |||||||||||||||||||||||||||||||||||||||
Note: Percent of net sales amounts may not sum to totals due to rounding.
Consolidated Statements of Comprehensive Income
(Unaudited)
(in thousands)
| For the Fiscal Three | For the Fiscal Six | ||||||||||||||||||||||
| Months Ended | Months Ended | ||||||||||||||||||||||
| June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | ||||||||||||||||||||
| Net income | $ | 360,715 | $ | 430,043 | $ | 525,239 | $ | 609,412 | |||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Change in fair value of interest rate swaps, net of taxes | — | — | — | (1,217) | |||||||||||||||||||
| Total other comprehensive loss | — | — | — | (1,217) | |||||||||||||||||||
| Total comprehensive income | $ | 360,715 | $ | 430,043 | $ | 525,239 | $ | 608,195 | |||||||||||||||
Consolidated Balance Sheets
(Unaudited)
(in thousands)
| June 27, 2026 | June 28, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 231,588 | $ | 225,810 | |||||||
| Inventories | 3,518,451 | 3,090,306 | |||||||||
| Prepaid expenses and other current assets | 298,482 | 227,649 | |||||||||
| Income taxes receivable | 205,995 | — | |||||||||
| Total current assets | 4,254,516 | 3,543,765 | |||||||||
| Property and equipment, net | 3,223,898 | 2,884,660 | |||||||||
| Operating lease right-of-use assets | 4,110,840 | 3,655,729 | |||||||||
| Goodwill and other intangible assets | 506,249 | 399,622 | |||||||||
| Other assets | 66,318 | 75,019 | |||||||||
| Total assets | $ | 12,161,821 | $ | 10,558,795 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,760,347 | $ | 1,519,094 | |||||||
| Accrued employee compensation | 74,935 | 72,305 | |||||||||
| Other accrued expenses | 878,948 | 614,221 | |||||||||
| Current portion of finance lease liabilities | 10,315 | 3,437 | |||||||||
| Current portion of operating lease liabilities | 463,556 | 410,249 | |||||||||
| Income taxes payable | 1,648 | 143,346 | |||||||||
| Total current liabilities | 3,189,749 | 2,762,652 | |||||||||
| Long-term debt | 2,153,826 | 1,673,472 | |||||||||
| Finance lease liabilities, less current portion | 42,933 | 26,318 | |||||||||
| Operating lease liabilities, less current portion | 3,874,348 | 3,443,879 | |||||||||
| Deferred income taxes | 100,109 | 19,841 | |||||||||
| Other long-term liabilities | 169,291 | 142,324 | |||||||||
| Total liabilities | 9,530,256 | 8,068,486 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 7,136 | 7,124 | |||||||||
| Additional paid-in capital | 1,473,959 | 1,399,333 | |||||||||
| Treasury stock | (6,641,872) | (6,191,887) | |||||||||
| Retained earnings | 7,792,342 | 7,275,739 | |||||||||
| Total stockholders’ equity | 2,631,565 | 2,490,309 | |||||||||
| Total liabilities and stockholders’ equity | $ | 12,161,821 | $ | 10,558,795 | |||||||
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
For the Fiscal Six Months Ended | |||||||||||
| June 27, 2026 | June 28, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 525,239 | $ | 609,412 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 257,449 | 242,179 | |||||||||
| Impairment expense | 62,747 | — | |||||||||
Gain on disposition of property and equipment | (41,465) | (33,421) | |||||||||
| Share-based compensation expense | 33,162 | 25,976 | |||||||||
| Deferred income taxes | (3,010) | (24,054) | |||||||||
| Change in assets and liabilities: | |||||||||||
| Inventories | (429,655) | (231,907) | |||||||||
| Prepaid expenses and other current assets | (91,619) | (26,400) | |||||||||
| Accounts payable | 363,375 | 271,691 | |||||||||
| Accrued employee compensation | (39,906) | (28,848) | |||||||||
| Other accrued expenses | 178,720 | (15,892) | |||||||||
| Income taxes | (177,303) | 160,308 | |||||||||
| Other | 15,402 | 53,531 | |||||||||
Net cash provided by operating activities | 653,136 | 1,002,575 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (435,713) | (351,644) | |||||||||
| Proceeds from sale of property and equipment | 69,938 | 42,906 | |||||||||
| Acquisition of VIP Petcare, net of cash acquired | (129,838) | — | |||||||||
| Acquisition of Allivet, net of cash acquired | — | (139,936) | |||||||||
Net cash used in investing activities | (495,613) | (448,674) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings under debt facilities | 3,000,000 | 1,315,000 | |||||||||
| Repayments under debt facilities | (2,610,000) | (1,475,000) | |||||||||
| Debt issuance costs | (2,506) | — | |||||||||
| Principal payments under finance lease liabilities | (1,445) | (2,056) | |||||||||
| Repurchase of shares to satisfy tax obligations | (14,384) | (14,482) | |||||||||
| Repurchase of common stock | (253,607) | (169,979) | |||||||||
| Net proceeds from issuance of common stock | 13,920 | 11,315 | |||||||||
| Cash dividends paid to stockholders | (252,022) | (244,380) | |||||||||
Net cash used in financing activities | (120,044) | (579,582) | |||||||||
Net increase (decrease) in cash and cash equivalents | 37,479 | (25,681) | |||||||||
| Cash and cash equivalents at beginning of period | 194,109 | 251,491 | |||||||||
| Cash and cash equivalents at end of period | $ | 231,588 | $ | 225,810 | |||||||
Selected Financial and Operating Information
(Unaudited)
| For the Fiscal Three | For the Fiscal Six | ||||||||||||||||||||||
| Months Ended | Months Ended | ||||||||||||||||||||||
| June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | ||||||||||||||||||||
| Sales Information: | |||||||||||||||||||||||
| Comparable store sales increase/(decrease) | (1.5) | % | 1.5 | % | (0.6) | % | 0.5 | % | |||||||||||||||
| New store sales (% of total sales) | 3.6 | % | 2.9 | % | 3.4 | % | 2.8 | % | |||||||||||||||
| Average transaction value | $63.70 | $63.68 | $60.91 | $60.51 | |||||||||||||||||||
Comparable store average transaction value increase/(decrease) (a) | 0.2 | % | 0.5 | % | 0.8 | % | (1.0) | % | |||||||||||||||
| Comparable store average transaction count increase/(decrease) | (1.7) | % | 1.0 | % | (1.4) | % | 1.5 | % | |||||||||||||||
| Total selling square footage (000’s) | 41,877 | 39,755 | 41,877 | 39,755 | |||||||||||||||||||
Owned Brands and Exclusive Product Categories (% of total sales) (b) | 29.0 | % | 27.6 | % | 30.2 | % | 29.5 | % | |||||||||||||||
| Imports (% of total sales) | 10.7 | % | 10.9 | % | 10.7 | % | 11.1 | % | |||||||||||||||
| Store Count Information: | |||||||||||||||||||||||
| Tractor Supply | |||||||||||||||||||||||
| Beginning of period | 2,435 | 2,311 | 2,395 | 2,296 | |||||||||||||||||||
| New stores opened | 28 | 24 | 68 | 39 | |||||||||||||||||||
| Stores closed | — | — | — | — | |||||||||||||||||||
| End of period | 2,463 | 2,335 | 2,463 | 2,335 | |||||||||||||||||||
| Petsense by Tractor Supply | |||||||||||||||||||||||
| Beginning of period | 206 | 206 | 207 | 206 | |||||||||||||||||||
| New stores opened | 3 | 2 | 3 | 4 | |||||||||||||||||||
| Stores closed | — | (1) | (1) | (3) | |||||||||||||||||||
| End of period | 209 | 207 | 209 | 207 | |||||||||||||||||||
| Consolidated end of period | 2,672 | 2,542 | 2,672 | 2,542 | |||||||||||||||||||
| Pre-opening costs (000’s) | $3,490 | $4,764 | $7,774 | $7,276 | |||||||||||||||||||
| Balance Sheet Information: | |||||||||||||||||||||||
Average inventory per store (000’s) (c) | $1,231.0 | $1,155.0 | $1,231.0 | $1,155.0 | |||||||||||||||||||
| Inventory turns (annualized) | 3.33 | 3.60 | 3.15 | 3.33 | |||||||||||||||||||
| Share repurchase program: | |||||||||||||||||||||||
Cost (000’s) (d) | $136,832 | $72,822 | $255,643 | $166,649 | |||||||||||||||||||
| Average purchase price per share | $34.92 | $51.10 | $40.86 | $52.89 | |||||||||||||||||||
(a) Comparable store average transaction value changes include the impact of transaction value changes achieved on the current period change in transaction count.
(b) Beginning in the fiscal year ended December 27, 2025, the metric of exclusive brands as a percentage of total sales, which historically included only Tractor Supply Owned Brands, was revised to include both Tractor Supply Owned Brands and Exclusive Product Categories as a percentage of total sales. Prior period amounts have been recast to conform to the current year presentation.
(c) Assumes average inventory cost, excluding inventory in transit.
(d) Effective January 1, 2023, the Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as a part of the cost basis of the shares within treasury stock.
Note: Comparable store metrics percentages may not sum to total due to rounding.
| For the Fiscal Three | For the Fiscal Six | ||||||||||||||||||||||
| Months Ended | Months Ended | ||||||||||||||||||||||
| June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | ||||||||||||||||||||
| Capital Expenditures (in millions): | |||||||||||||||||||||||
| New stores, relocated stores and stores not yet opened | $ | 91.5 | $ | 85.3 | $ | 185.2 | $ | 144.8 | |||||||||||||||
| Existing stores | 71.1 | 58.4 | 123.7 | 101.4 | |||||||||||||||||||
| Information technology | 39.3 | 42.8 | 73.4 | 68.8 | |||||||||||||||||||
| Distribution center capacity and improvements | 30.7 | 23.6 | 52.7 | 31.6 | |||||||||||||||||||
| Corporate and other | 0.5 | 0.2 | 0.7 | 5.0 | |||||||||||||||||||
| Total | $ | 233.1 | $ | 210.3 | $ | 435.7 | $ | 351.6 | |||||||||||||||
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.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(in thousands, except per share and percentage data)
| For the Fiscal Three Months Ended | |||||||||||||||||||||||||||||||||||
| June 27, 2026 | Impairment and Acquisition Costs (a) | June 27, 2026 | |||||||||||||||||||||||||||||||||
| (As Reported) | (Adjustment) | (As Adjusted) | |||||||||||||||||||||||||||||||||
| % of | % of | % of | |||||||||||||||||||||||||||||||||
| Net | Net | Net | |||||||||||||||||||||||||||||||||
| Sales | Sales | Sales | |||||||||||||||||||||||||||||||||
| Cost of merchandise sold | $ | 2,858,705 | 62.95% | $ | (5,926) | (0.13)% | $ | 2,852,779 | 62.82% | ||||||||||||||||||||||||||
Gross profit | $ | 1,682,609 | 37.05% | $ | 5,926 | 0.13% | $ | 1,688,535 | 37.18% | ||||||||||||||||||||||||||
| Selling, general and administrative expenses (including depreciation, amortization, and impairment expense) | $ | 1,215,494 | 26.77% | $ | (75,291) | (1.66)% | $ | 1,140,203 | 25.11% | ||||||||||||||||||||||||||
| Operating income | $ | 467,115 | 10.29% | $ | 81,217 | 1.79% | $ | 548,332 | 12.07% | ||||||||||||||||||||||||||
| Income before income taxes | $ | 450,012 | 9.91% | $ | 81,217 | 1.79% | $ | 531,229 | 11.70% | ||||||||||||||||||||||||||
| Income tax expense | $ | 89,297 | 1.97% | $ | 18,433 | 0.41% | $ | 107,730 | 2.37% | ||||||||||||||||||||||||||
| Net income | $ | 360,715 | 7.94% | $ | 62,784 | 1.38% | $ | 423,499 | 9.33% | ||||||||||||||||||||||||||
| Diluted net income per share | $ | 0.69 | $ | 0.12 | $ | 0.81 | |||||||||||||||||||||||||||||
| For the Fiscal Six Months Ended | |||||||||||||||||||||||||||||||||||
| June 27, 2026 | Impairment and Acquisition Costs (a) | June 27, 2026 | |||||||||||||||||||||||||||||||||
| (As Reported) | (Adjustment) | (As Adjusted) | |||||||||||||||||||||||||||||||||
| % of | % of | % of | |||||||||||||||||||||||||||||||||
| Net | Net | Net | |||||||||||||||||||||||||||||||||
| Sales | Sales | Sales | |||||||||||||||||||||||||||||||||
| Cost of merchandise sold | $ | 5,149,566 | 63.31% | $ | (5,926) | (0.07)% | $ | 5,143,640 | 63.24% | ||||||||||||||||||||||||||
| Gross profit | $ | 2,983,794 | 36.69% | $ | 5,926 | 0.07% | $ | 2,989,720 | 36.76% | ||||||||||||||||||||||||||
| Selling, general and administrative expenses (including depreciation, amortization, and impairment expense) | $ | 2,283,248 | 28.07% | $ | (75,291) | (0.93)% | $ | 2,207,957 | 27.15% | ||||||||||||||||||||||||||
| Operating income | $ | 700,546 | 8.61% | $ | 81,217 | 1.00% | $ | 781,763 | 9.61% | ||||||||||||||||||||||||||
| Income before income taxes | $ | 664,335 | 8.17% | $ | 81,217 | 1.00% | $ | 745,552 | 9.17% | ||||||||||||||||||||||||||
| Income tax expense | $ | 139,096 | 1.71% | $ | 18,433 | 0.23% | $ | 157,529 | 1.94% | ||||||||||||||||||||||||||
| Net income | $ | 525,239 | 6.46% | $ | 62,784 | 0.77% | $ | 588,023 | 7.23% | ||||||||||||||||||||||||||
| Diluted net income per share | $ | 1.00 | $ | 0.12 | $ | 1.12 | |||||||||||||||||||||||||||||
(a) Impairment and Acquisition Costs totaling $75.3 million are comprised of $33.2 million in goodwill and intangible asset impairment charges, $32.6 million in other impairment and restructuring charges, and $9.5 million in acquisition costs.