Tractor Supply earnings and revenues fell a little short of Wall Street expectations during the first quarter, which saw the retailer open several new stores.
Net income was $164.5 million, or 31 cents per diluted share, versus $179.4 million, or 34 cents per diluted share, in the year-before quarter.
A Zacks Investment Research analyst consensus estimate called for Tractor Supply to deliver first-quarter earnings of 35 cents per diluted share on revenues of $3.65 billion.
Comparable sales increased by 0.5% in the quarter year over year, the company reported. Comp average ticket increased 1.6%, partially offset by a comp average transaction count decline of 1%.
Net sales were $3.59 billion versus $3.47 billion in the year-earlier quarter. Operating income was $233.4 million versus $249.1 million in the period a year prior.
Income numbers took a hit from an increase in SG&A, based partially on an advance in store opening cadence, with the expense increasing to $941.2 million from $886.2 million in the year-previous period, according to Tractor Supply. The company opened 40 new namesake stores and closed one Petsense by Tractor Supply store in the first quarter.
The company outlook for fiscal 2026 is for a net sales increase of 4% to 6%, a comp increase of 1% to 3% and net income of $1.11 billion to $1.17 billion, or $2.13 to $2.23 per diluted share.
“We delivered solid performance across the majority of our business in the first quarter, supported by our needs-based model and ongoing customer engagement,” said Hal Lawton, Tractor Supply president and CEO. “We continued to gain market share in farm and ranch and had strong double-digit growth in digital sales. Performance was positive across four of our five product categories. While companion animal trailed the company average, we are taking decisive actions to improve its performance. We remain confident in our outlook and our ability to drive continued market share gains as our customers remain engaged. The underlying health of Tractor Supply remains strong, supported by a loyal customer base, a differentiated business model and consistent execution.”
