Tractor Supply Company reported earnings slid 8.3 percent in the first quarter ended March 28 due to costs related to an aggressive store opening plan. Same-store sales inched up 0.5 percent while gross margins were flat. The rural lifestyle retailer reiterated its guidance for the year.

First Quarter Summary

  • Net sales increased 3.6 percent to $3.59 billion versus analysts’ consensus estimate of $3.63 billion.
  • Comparable store sales increased 0.5 percent
  • Diluted earnings per share (EPS) of 31 cents versus consensus estimate of 34 cents.
  • Company reaffirms fiscal year 2026 outlook, including comparable store sales growth of 1 percent to 3 percent and diluted eps of $2.13 to $2.23

“We delivered solid performance across the majority of our business in the first quarter, supported by our needs-based model and ongoing customer engagement. We continued to gain market share in farm and ranch and had strong double-digit growth in digital sales. Performance was positive across four of our five product categories. While companion animal trailed the company average, we are taking decisive actions to improve its performance. I want to thank our more than 52,000 Team Members for their ongoing dedication to serving our customers and living our Mission and Values each day,” said Hal Lawton, president and chief executive officer of Tractor Supply.

“We delivered solid performance across the majority of our business in the first quarter, supported by our needs-based model and ongoing customer engagement. We continued to gain market share in farm and ranch and had strong double-digit growth in digital sales. Performance was positive across four of our five product categories. While companion animal trailed the company average, we are taking decisive actions to improve its performance. I want to thank our more than 52,000 Team Members for their ongoing dedication to serving our customers and living our Mission and Values each day,” said Hal Lawton, president and chief executive officer of Tractor Supply.

“We remain confident in our outlook and our ability to drive continued market share gains as our customers remain engaged. The underlying health of Tractor Supply remains strong, supported by a loyal customer base, a differentiated business model and consistent execution.”

First Quarter 2026 Results
Net sales for the first quarter of 2026 increased 3.6 percent to $3.59 billion from $3.47 billion in the first quarter of 2025. The increase in net sales was driven by robust new store openings and, to a lesser extent, growth in comparable store sales. Comparable store sales increased 0.5 percent compared to a decrease of 0.9 percent in the prior year’s first quarter. Comparable average ticket increased 1.6 percent, partially offset by a comparable average transaction count decrease of 1.0 percent. The company delivered strong double-digit growth in digital sales. Four of five product categories delivered positive comparable sales growth in the quarter, complemented by strength in big ticket items. Companion animal performance was below the company average, reflecting softer demand trends, category shifts and an unfavorable product mix.

Gross profit increased 3.6 percent to $1.30 billion from $1.26 billion in the prior year’s first quarter, and gross margin was flat with the prior year at 36.2 percent. The gross margin rate benefited from disciplined product cost management and the continued execution of an everyday low price strategy, offset by higher tariffs and delivery-related transportation costs.

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 6.1 percent to $1.07 billion from $1.01 billion in the prior year’s first quarter. As a percent of net sales, SG&A expenses increased 70 basis points to 29.7 percent from 29.0 percent in the first quarter of 2025. The increase in SG&A, as a percent of net sales, was primarily attributable to deleverage of fixed costs given the comparable store sales performance and an accelerated new store opening cadence, partially offset by an ongoing focus on productivity and cost discipline.

Operating income decreased 6.3 percent to $233.4 million from $249.1 million in the first quarter of 2025.

The effective income tax rate was 23.2 percent compared to 21.8 percent in the first quarter of 2025. The effective tax rate for the prior-year first quarter was impacted by the timing of discrete items.

Net income decreased 8.3 percent to $164.5 million from $179.4 million in the prior year’s first quarter. Diluted EPS decreased 7.2 percent to 31 cents per share in Q1, compared to 34 cents in the prior-year first quarter.

The company repurchased approximately 2.3 million shares of its common stock for $118.0 million and paid quarterly cash dividends totaling $126.4 million, returning a total of $244.4 million of capital to shareholders in the first quarter of 2026.

The company opened 40 new Tractor Supply stores and closed one Petsense by Tractor Supply store in the first quarter of 2026.

As of March 28, 2026, the company operated 2,435 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. The retailer plans to open 100 stores this year after opening 99 in 2025.

Fiscal Year 2026 Financial Outlook
Based on year-to-date performance and its outlook, Tractor Supply reiterates the following financial guidance for fiscal year 2026, initially provided on January 29, 2026:

Images courtesy Tractor Supply