NEW YORK, July 23, 2026, 09:07 EDT
- Shares rose 2.9% to $30.22 ahead of the market open.
- Quarterly revenue increased by 2.3%, but same-store sales declined 1.5%.
- Tractor Supply reduced its 2026 forecast and removed its long-term framework.
Shares of Tractor Supply Company NASDAQ:TSCO gained 2.9% in premarket trading on Thursday. The stock was pointed at $30.22, compared to its Wednesday closing price of $29.36. U.S. cash markets were not yet open.
The increase came after the company lowered its 2026 outlook and reported softer store traffic. This rise followed a 41.3% drop since the start of the year through Wednesday.
Adjusted earnings stood at $0.81 per share. The Associated Press, citing the Zacks consensus, expected $0.83.
Investors are concerned about the quality of sales. Expansion is being driven by new store openings, while transaction numbers at existing outlets decline.
Sales for the second quarter increased 2.3% to $4.54 billion. Comparable sales declined 1.5%, and comparable transactions slipped 1.7%. The average ticket grew by only 0.2%.
Reported growth outpaced comparable growth by 3.8 percentage points. In the previous quarter, the difference stood at 3.1 points. This figure serves as an indicative measure, not an official company metric.
The difference became more apparent in the company’s operating timetable.
| Operating measure | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales | $4.54 billion | $4.44 billion | +2.3% |
| Comparable sales | -1.5% | +1.5% | -3.0 points |
| Comparable transactions | -1.7% | +1.0% | -2.7 points |
| New-store sales share | 3.6% | 2.9% | +0.7 points |
| Adjusted SG&A as a share of sales | 25.1% | 23.9% | +118 basis points |
Growth required significant capital investment. Tractor Supply added 68 locations in the first half, compared with 39 previously. Capital expenditures rose by 24% to $435.7 million.
Sales in the first half increased by 2.9%, but comparable store sales dropped by 0.6%. Revenue from new-store sales accounted for 3.4%. Comparable transaction volume slipped 1.4%.
The increase in growth was not matched by profit gains. Adjusted gross margin increased by 24 basis points, but adjusted SG&A advanced 7.3%, outpacing sales growth by more than threefold. Adjusted operating income declined 5.1%.
Chief Executive Hal Lawton highlighted May as a factor. “Positive comparable store sales in April and June were more than offset by unusually adverse conditions in May,” he said. Sales of seasonal, big-ticket, and discretionary items declined. Tractor Supply Company
Tractor Supply is trimming its pet business as well, announcing plans to shut approximately 75 Petsense locations. That represents close to 36% of the 209 Petsense outlets, according to company data.
The quarter saw $65.8 million in Petsense impairment and restructuring expenses. Inventory write-down associated with this totaled $5.9 million. Additionally, VIP Petcare acquisition expenses amounted to $9.5 million.
The outlook revision was widespread. The midpoint shifts listed below reflect calculations based on the company’s provided guidance ranges.
| 2026 measure | Prior outlook | Updated outlook | Midpoint change |
|---|---|---|---|
| Net sales increase | 4% to 6% | 2.5% to 3.5% | -2.0 points |
| Comparable sales | 1% to 3% | -1% to flat | -2.5 points |
| GAAP operating margin | 9.3% to 9.6% | 8.0% to 8.3% | -130 basis points |
| GAAP earnings per share | $2.13 to $2.23 | $1.78 to $1.88 | -16.1% |
Tractor Supply now expects adjusted EPS in the range of $1.90 to $2.00. The company has also withdrawn its December 2024 long-term framework, with a new framework set to be outlined alongside fourth-quarter results.
The advance seen in premarket trading seems to reflect a relief rally. The stock is still trading about 53% under its 52-week peak of $63.99.
Risks stay balanced on both sides. Further weather impact or continued softness in pet could heighten cost deleverage. Improved customer traffic and accelerated savings from closures could help bolster the updated range.
