Tractor Supply beat a Wall Street estimate in the third quarter, with sales up while earnings slipped year over year.
The company reported that net income slipped to $224.7 million, or 43 cents per diluted share, from $259.3 million, or 49 cents per diluted share, in the year-prior quarter.
A consensus analyst estimate emerging from Zacks Investment Research called for earnings per diluted share of 41 cents and revenues of $3.81 billion.
Comparable sales rose 0.4% year over year, Tractor Supply noted, reflecting a 0.7% gain in comp average ticket and a 0.3% decline in comp average transaction count.
Net sales advanced 5.1% to $3.91 billion versus the year-previous period. Operating income decreased 10.2% to $307.7 million.
Sales benefited from strength in seasonal categories, including tool and hardware, while consumable, usable, and edible categories performed above the company average, Tractor Supply said. The company pointed out that continued softness in big-ticket and companion animal goods partially offset gains. Double-digit growth online helped drive year-over-year sales gains, Tractor Supply added.
The company opened 23 new Tractor Supply and closed 74 Petsense stores during the quarter.
Tractor Supply reaffirmed its financial outlook for fiscal year 2026, with net sales up 2.5% to 3.5%, comparable sales down 1% to flat, and adjusted net income up to $990 million to $1.05 billion, or $1.90 to $2 per diluted share.
“Our third quarter marked a step forward for Tractor Supply, with improved sales momentum and broader strength across our business,” said Hal Lawton, the company’s president and CEO. “The actions we are taking around value, pet, digital and convenience gained traction in the quarter. 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.”
