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Tractor Supply Posts Modest Q1 Comp Gain, Reaffirms 2026 Outlook as Profit Slips

Earnings fell on softer pet demand, higher delivery costs, rising tariffs.

Overview

  • Tractor Supply, which reported first-quarter results Tuesday, posted net sales of $3.59 billion up 3.6%, comparable store sales up 0.5%, and EPS of $0.31, and it reaffirmed its 2026 outlook for 1%–3% comps and $2.13–$2.23 in EPS.
  • Profitability weakened as SG&A expenses rose 6.1% to $1.07 billion and expanded to 29.7% of sales, while a flat 36.2% gross margin faced pressure from delivery transportation costs and tariffs.
  • The company opened a record 40 stores in the quarter with new-location productivity at roughly 65%–70%, which management said drove most of the top-line growth.
  • Digital sales grew at a double-digit rate, helped by subscription enhancements and a wider Final Mile delivery network that brings bulky items like feed and equipment directly to customers.
  • Companion-animal sales trailed due to softer demand and a smaller U.S. dog population, and the company is rolling out fresh and frozen pet nutrition to about 700 stores by year-end while guiding for sequential comp improvement in Q2 and margin benefits later in the year as a new distribution center ramps.