TSCO · Tractor Supply Company

Tractor Supply Company delivered mixed first quarter 2026 results with top-line growth but bottom-line contraction. Net sales increased 3.6% to $3.59 billion, driven primarily by robust new store openings (40 stores opened) and modest comparable store sales growth of 0.5%, which improved from a 0.9% decline in the prior year quarter. The company highlighted strong double-digit growth in digital sales and positive comparable sales growth in four of five product categories, though the companion animal category trailed company average due to softer demand trends, category shifts, and unfavorable product mix. Gross margin remained flat at 36.2% as disciplined product cost management and everyday low price strategy execution were offset by higher tariffs and delivery-related transportation costs. SG&A expenses increased 6.1% to $1.07 billion, representing 29.7% of net sales compared to 29.0% in the prior year, primarily due to deleverage of fixed costs from comparable store sales performance and accelerated new store openings. This SG&A pressure contributed to an 8.3% decline in net income to $164.5 million and a 7.2% decrease in diluted EPS to $0.31. Management expressed confidence in the company's outlook, citing ongoing customer engagement, market share gains in farm and ranch, and the underlying health of the business supported by a loyal customer base and differentiated business model. The company reaffirmed its full fiscal year 2026 guidance initially provided on January 29, 2026, including comparable store sales growth of 1-3% and diluted EPS of $2.13-$2.23. Capital allocation remained active with $118.0 million in share repurchases and $126.4 million in dividends, totaling $244.4 million returned to shareholders during the quarter.