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Oct. 23, 2026 Source: Tractor Supply Co. news release BRENTWOOD, Tenn.-- Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the "Company"), today reported financial results for its third quarter ended September 26, 2026. *Net Sales Increased 5.1% to $3.91 Billion *Comparable Store Sales Increased 0.4%, on Top of 3.9% Growth in the Prior-Year's Quarter *Diluted Earnings Per Share ("EPS") of $0.43 "Our third quarter marked a step forward for Tractor Supply, with improved sales momentum and broader strength across our business. The actions we are taking around value, pet, digital and convenience gained traction in the quarter. I want to thank our more than 54,000 Team Members for their dedication to serving our customers every day. "We are moving with urgency to sharpen our strategic priorities, drive productivity and make deliberate choices about where we invest our capital and resources. These efforts are designed to accelerate comparable store sales growth, restore operating margins and deliver attractive long-term shareholder returns. Our progress in the quarter and the actions underway give us confidence in our ability to deliver within our full-year guidance, which we are reaffirming today. "As we head into the fourth quarter, our focus remains on being the dependable supplier our customers count on throughout the winter season," said Hal Lawton, President and Chief Executive Officer of Tractor Supply. Third Quarter 2026 Results Net sales increased 5.1% to $3.91 billion from $3.72 billion in the third quarter of 2025. The increase in net sales was driven by new store openings, the acquisition of VIP Petcare and growth in comparable store sales. Comparable store sales increased 0.4%, compared with an increase of 3.9% in the prior year's third quarter, reflecting a 0.7% increase in comparable average ticket and a 0.3% decline in comparable average transaction count. Comparable store sales improved sequentially through the quarter, moving from negative in July to modestly positive in August to further strengthening in September. Results benefited from solid performance in seasonal categories including wildlife supplies, equine & livestock and truck, tool & hardware. The Company's consumable, usable and edible categories performed above the Company average. Double-digit growth in digital sales also contributed to results. These gains were partially offset by continued softness in big-ticket and companion animal categories. While companion animal continued to perform below the Company average, trends have improved steadily since the first quarter. Gross profit increased 2.6% to $1.42 billion from $1.39 billion in the prior year's third quarter. Gross margin rate was 36.4%, compared to 37.4% in the prior year's third quarter. This decline was primarily attributable to higher transportation and fuel costs and incremental investments to strengthen the Company's price-value position. Selling, general and administrative ("SG&A") expenses, including depreciation and amortization, increased 6.8% to $1.12 billion from $1.05 billion in the prior year's third quarter. As a percent of net sales, SG&A expenses increased to 28.6% from 28.1% in the third quarter of 2025. The increase in SG&A as a percent of net sales was primarily driven by deleverage from lower comparable store sales and startup costs associated with the opening of the new distribution center, partially offset by disciplined expense control across the business. Operating income decreased 10.2% to $307.7 million from $342.7 million in the third quarter of 2025. The effective income tax rate was 22.1% compared to 21.0% in the third quarter of 2025, primarily reflecting the lapping of certain tax planning initiatives in the prior year. Net income decreased 13.3% to $224.7 million from $259.3 million in the third quarter of 2025. Diluted EPS decreased 11.6% to $0.43 compared to $0.49 in the third quarter of 2025. The Company repurchased approximately 2.7 million shares of its common stock for $88.5 million and paid quarterly cash dividends totaling $124.9 million, returning a total of $213.4 million of capital to shareholders in the third quarter of 2026. The Company opened 23 new Tractor Supply stores and closed 74 Petsense by Tractor Supply stores, as previously announced, in the third quarter of 2026. To read the entire report click here. Tweet |
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