BRENTWOOD, Tenn. — Tractor Supply Co. posted financial results for the second quarter that were adversely affected by higher fuel cost and other economic headwinds.
The nation’s largest rural lifestyle retailer lowered its guidance for the full year and took an inventory write-down of $5.9 million related to the planned closure of approximately 75 Petsense by Tractor Supply stores.
“We are updating our fiscal 2026 outlook to reflect our year-to-date performance and expectations for the balance of the year,” said Hal Lawton, the company’s president and chief executive officer. “We are responding with urgency by strengthening our companion animal business, reinforcing our value position and improving productivity across the business. At the same time, we are sharpening our strategic focus, evaluating where we allocate capital and resources and making disciplined choices that we believe will strengthen Tractor Supply and create long-term shareholder value.”
Tractor Supply reported a 2.3% increase in net sales for the quarter ended June 27, aided by new store openings.
Comparable-store sales were down 1.5%, missing analysts’ expectations. The comparable average transaction count declined 1.7% as the comparable average ticket increased 0.2%.
The company now expects full-year comps to remain flat or decline 1% after previously projecting comp-sales to rise between 1% and 3% this year.
“Positive comparable store sales in April and June were more than offset by unusually adverse conditions in May, which drove second quarter results below our expectations,” Lawton said. “While we are not satisfied with our performance, we believe there are discrete headwinds impacting the majority of our end markets.”
Among the headwinds cited by Tractor Supply are expensive gasoline and diesel costs that burden customers who drive a significant distance to their Tractor Supply outlet. Store traffic was also hampered by dry weather across parts of the South that interrupted normal season activities.
The company said it will slow the pace of store to between 85 and 90 for the year, down from an earlier target of 100.
The company currently has 2,463 Tractor Supply stores in 49 states and 209 Petsense by Tractor Supply stores in 23 states.
Despite the decision to close 75 Petsense locations, the company sees growth potential in catering to pet owners. It recently began scaling its offering of premium fresh and frozen pet food as part of its response to macro trends in pet ownership and shopper preferences. The company is expanding its presence in cat food, increasing space across its remodeled Project Fusion stores, expanding both dry and wet assortments and improving presentation to better capture the opportunity in the segment.
