Tractor Supply Company Reports First Quarter 2026 Financial Results; Reaffirms Fiscal Year 2026 Outlook
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260421543068/en/
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Net Sales Increased 3.6% to
$3.59 Billion - Comparable Store Sales Increased 0.5%
-
Diluted Earnings per Share (“EPS”) of
$0.31 -
Company Reaffirms Fiscal Year 2026 Outlook, Including Comparable Store Sales Growth of 1% to 3% and Diluted EPS of
$2.13 to$2.23
“We delivered solid performance across the majority of our business in the first quarter, supported by our needs-based model and ongoing customer engagement. 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. I want to thank our more than 52,000 Team Members for their ongoing dedication to serving our customers and living our Mission and Values each day,” said
“We remain confident in our outlook and our ability to drive continued market share gains as our customers remain engaged. The underlying health of
First Quarter 2026 Results
Net sales for the first quarter of 2026 increased 3.6% to
Gross profit increased 3.6% to
Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 6.1% to
Operating income decreased 6.3% to
The effective income tax rate was 23.2% compared to 21.8% in the first quarter of 2025. The effective tax rate for the prior year’s first quarter was impacted by the timing of discrete items.
Net income decreased 8.3% to
The Company repurchased approximately 2.3 million shares of its common stock for
The Company opened 40 new
Fiscal Year 2026 Financial Outlook
Based on year-to-date performance and its outlook,
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Outlook |
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+4% to +6% |
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Comparable Store Sales |
+1% to +3% |
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Operating Margin Rate |
9.3% to 9.6% |
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Net Income |
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Earnings per Diluted Share |
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Conference Call Information
Please allow extra time prior to the call to visit the site and download the streaming media software required to access the webcast.
A replay of the webcast will also be available at IR.TractorSupply.com shortly after the call concludes.
About
For more than 85 years,
As part of the Company’s commitment to caring for animals of all kinds,
As of
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements regarding market share gains, value creation, customer trends, new stores and distribution centers, property development plans, return of capital, financial guidance for fiscal 2026, including net sales, comparable store sales, operating margin rates, net income and earnings per diluted share. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “will,” “intend,” “would,” “expect,” “continue,” “believe,” “anticipate,” “optimistic,” “forecasted” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to facts outside of our control. These factors include, without limitation, the impact of the recent and potential future tariff announcements and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
(Financial tables to follow)
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Consolidated Statements of Income (Unaudited) (in thousands, except per share and percentage data) |
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For the Fiscal Three |
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Months Ended |
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% of |
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% of |
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Net |
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Net |
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Sales |
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|
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Sales |
|||||
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Net sales |
$ |
3,592,046 |
|
100.00 |
% |
|
$ |
3,466,952 |
|
100.00 |
% |
|
|
Cost of merchandise sold |
|
2,290,861 |
|
63.78 |
|
|
|
2,211,530 |
|
63.79 |
|
|
|
Gross profit |
|
1,301,185 |
|
36.22 |
|
|
|
1,255,422 |
|
36.21 |
|
|
|
Selling, general and administrative expenses |
|
941,153 |
|
26.20 |
|
|
|
886,206 |
|
25.56 |
|
|
|
Depreciation and amortization |
|
126,601 |
|
3.52 |
|
|
|
120,079 |
|
3.46 |
|
|
|
Operating income |
|
233,431 |
|
6.50 |
|
|
|
249,137 |
|
7.19 |
|
|
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Interest expense, net |
|
19,108 |
|
0.53 |
|
|
|
19,641 |
|
0.57 |
|
|
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Income before income taxes |
|
214,323 |
|
5.97 |
|
|
|
229,496 |
|
6.62 |
|
|
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Income tax expense |
|
49,799 |
|
1.39 |
|
|
|
50,127 |
|
1.45 |
|
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Net income |
$ |
164,524 |
|
4.58 |
% |
|
$ |
179,369 |
|
5.17 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
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Net income per share - basic |
$ |
0.31 |
|
|
|
$ |
0.34 |
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|||
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Net income per share - diluted |
$ |
0.31 |
|
|
|
$ |
0.34 |
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|||
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|
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Weighted average shares outstanding: |
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|
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|
|
|
|||||
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Basic |
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526,327 |
|
|
|
|
531,730 |
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|||
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Diluted |
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528,136 |
|
|
|
|
534,099 |
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|||
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Dividends declared per common share outstanding |
$ |
0.24 |
|
|
|
$ |
0.23 |
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Note: Percent of net sales amounts may not sum to totals due to rounding. |
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Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) |
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For the Fiscal Three |
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Months Ended |
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Net income |
$ |
164,524 |
|
$ |
179,369 |
|
|
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Other comprehensive loss: |
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|
||||
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Change in fair value of interest rate swaps, net of taxes |
|
— |
|
|
(1,217 |
) |
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Total other comprehensive loss |
|
— |
|
|
(1,217 |
) |
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Total comprehensive income |
$ |
164,524 |
|
$ |
178,152 |
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Consolidated Balance Sheets (Unaudited) (in thousands) |
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ASSETS |
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Current assets: |
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|
||||
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Cash and cash equivalents |
$ |
224,269 |
|
|
$ |
231,717 |
|
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Inventories |
|
3,583,601 |
|
|
|
3,213,885 |
|
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Prepaid expenses and other current assets |
|
222,440 |
|
|
|
210,480 |
|
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Income taxes receivable |
|
11,286 |
|
|
|
— |
|
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Total current assets |
|
4,041,596 |
|
|
|
3,656,082 |
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Property and equipment, net |
|
3,132,326 |
|
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|
2,752,137 |
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Operating lease right-of-use assets |
|
4,031,692 |
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|
3,502,880 |
|
|
|
|
398,213 |
|
|
|
400,656 |
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Other assets |
|
58,270 |
|
|
|
73,562 |
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Total assets |
$ |
11,662,097 |
|
|
$ |
10,385,317 |
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|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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|
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Accounts payable |
$ |
1,760,426 |
|
|
$ |
1,559,210 |
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Accrued employee compensation |
|
20,977 |
|
|
|
17,487 |
|
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Other accrued expenses |
|
674,003 |
|
|
|
587,800 |
|
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Current portion of finance lease liabilities |
|
7,128 |
|
|
|
2,847 |
|
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Current portion of operating lease liabilities |
|
455,159 |
|
|
|
403,600 |
|
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Income taxes payable |
|
12,028 |
|
|
|
29,570 |
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Total current liabilities |
|
2,929,721 |
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|
2,600,514 |
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Long-term debt |
|
2,125,726 |
|
|
|
2,082,721 |
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Finance lease liabilities, less current portion |
|
35,157 |
|
|
|
24,289 |
|
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Operating lease liabilities, less current portion |
|
3,785,608 |
|
|
|
3,248,270 |
|
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Deferred income taxes |
|
113,354 |
|
|
|
41,649 |
|
|
Other long-term liabilities |
|
158,782 |
|
|
|
149,334 |
|
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Total liabilities |
|
9,148,348 |
|
|
|
8,146,777 |
|
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Stockholders’ equity: |
|
|
|
||||
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Common stock |
|
7,134 |
|
|
|
7,123 |
|
|
Additional paid-in capital |
|
1,454,387 |
|
|
|
1,382,807 |
|
|
|
|
(6,505,040 |
) |
|
|
(6,119,065 |
) |
|
Accumulated other comprehensive income |
|
— |
|
|
|
— |
|
|
Retained earnings |
|
7,557,268 |
|
|
|
6,967,675 |
|
|
Total stockholders’ equity |
|
2,513,749 |
|
|
|
2,238,540 |
|
|
Total liabilities and stockholders’ equity |
$ |
11,662,097 |
|
|
$ |
10,385,317 |
|
|
Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
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For the Fiscal Three Months Ended |
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Cash flows from operating activities: |
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Net income |
$ |
164,524 |
|
|
$ |
179,369 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
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Depreciation and amortization |
|
126,601 |
|
|
|
120,079 |
|
|
Gain on disposition of property and equipment |
|
(22,741 |
) |
|
|
(17,415 |
) |
|
Share-based compensation expense |
|
17,631 |
|
|
|
13,226 |
|
|
Deferred income taxes |
|
23,501 |
|
|
|
1,677 |
|
|
Change in assets and liabilities: |
|
|
|
||||
|
Inventories |
|
(499,515 |
) |
|
|
(355,486 |
) |
|
Prepaid expenses and other current assets |
|
(19,953 |
) |
|
|
(11,320 |
) |
|
Accounts payable |
|
369,593 |
|
|
|
311,807 |
|
|
Accrued employee compensation |
|
(93,864 |
) |
|
|
(83,666 |
) |
|
Other accrued expenses |
|
(11,047 |
) |
|
|
2,609 |
|
|
Income taxes |
|
27,787 |
|
|
|
46,526 |
|
|
Other |
|
8,603 |
|
|
|
9,369 |
|
|
Net cash provided by operating activities |
|
91,120 |
|
|
|
216,775 |
|
|
Cash flows from investing activities: |
|
|
|
||||
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Capital expenditures |
|
(202,610 |
) |
|
|
(141,280 |
) |
|
Proceeds from sale of property and equipment |
|
31,274 |
|
|
|
20,851 |
|
|
Acquisition of Allivet, net of cash acquired |
|
— |
|
|
|
(140,625 |
) |
|
Net cash used in investing activities |
|
(171,336 |
) |
|
|
(261,054 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
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Borrowings under debt facilities |
|
1,480,000 |
|
|
|
605,000 |
|
|
Repayments under debt facilities |
|
(1,120,000 |
) |
|
|
(355,000 |
) |
|
Principal payments under finance lease liabilities |
|
(717 |
) |
|
|
(1,068 |
) |
|
Repurchase of shares to satisfy tax obligations |
|
(14,102 |
) |
|
|
(13,960 |
) |
|
Repurchase of common stock |
|
(118,019 |
) |
|
|
(95,082 |
) |
|
Net proceeds from issuance of common stock |
|
9,595 |
|
|
|
7,016 |
|
|
Cash dividends paid to stockholders |
|
(126,381 |
) |
|
|
(122,401 |
) |
|
Net cash provided by financing activities |
|
110,376 |
|
|
|
24,505 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
30,160 |
|
|
|
(19,774 |
) |
|
Cash and cash equivalents at beginning of period |
|
194,109 |
|
|
|
251,491 |
|
|
Cash and cash equivalents at end of period |
$ |
224,269 |
|
|
$ |
231,717 |
|
|
Selected Financial and Operating Information (Unaudited) |
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For the Fiscal Three |
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Months Ended |
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Sales Information: |
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|
|
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Comparable store sales increase/(decrease) |
|
0.5 |
% |
|
|
(0.9 |
)% |
|
New store sales (% of total sales) |
|
3.1 |
% |
|
|
2.8 |
% |
|
Average transaction value |
$ |
57.71 |
|
|
$ |
56.87 |
|
|
Comparable store average transaction value increase/(decrease) (a) |
|
1.6 |
% |
|
|
(2.9 |
)% |
|
Comparable store average transaction count increase/(decrease) |
|
(1.0 |
)% |
|
|
2.1 |
% |
|
Total selling square footage (000’s) |
|
41,438 |
|
|
|
39,353 |
|
|
Owned Brands and Exclusive Product Categories (% of total sales) (b) |
|
31.8 |
% |
|
|
30.9 |
% |
|
Imports (% of total sales) |
|
10.6 |
% |
|
|
11.2 |
% |
|
|
|
|
|
||||
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Store Count Information: |
|
|
|
||||
|
|
|
|
|
||||
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Beginning of period |
|
2,395 |
|
|
|
2,296 |
|
|
New stores opened |
|
40 |
|
|
|
15 |
|
|
Stores closed |
|
— |
|
|
|
— |
|
|
End of period |
|
2,435 |
|
|
|
2,311 |
|
|
|
|
|
|
||||
|
Beginning of period |
|
207 |
|
|
|
206 |
|
|
New stores opened |
|
— |
|
|
|
2 |
|
|
Stores closed |
|
(1 |
) |
|
|
(2 |
) |
|
End of period |
|
206 |
|
|
|
206 |
|
|
Consolidated end of period |
|
2,641 |
|
|
|
2,517 |
|
|
|
|
|
|
||||
|
Pre-opening costs (000’s) |
$ |
4,284 |
|
|
$ |
2,512 |
|
|
|
|
|
|
||||
|
Balance Sheet Information: |
|
|
|
||||
|
Average inventory per store (000’s) (c) |
$ |
1,278.3 |
|
|
$ |
1,202.1 |
|
|
Inventory turns (annualized) |
|
2.92 |
|
|
|
3.00 |
|
|
|
|
|
|
||||
|
Share repurchase program: |
|
|
|
||||
|
Cost (000’s) (d) |
$ |
118,811 |
|
|
$ |
93,827 |
|
|
Average purchase price per share |
$ |
50.75 |
|
|
$ |
54.39 |
|
|
|
|
(a) Comparable store average transaction value changes include the impact of transaction value changes achieved on the current period change in transaction count. |
|
(b) Beginning in the fiscal year ended |
|
(c) Assumes average inventory cost, excluding inventory in transit. |
|
(d) Effective |
|
|
|
Note: Comparable store metrics percentages may not sum to total due to rounding. |
|
|
For the Fiscal Three |
||||
|
|
Months Ended |
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|
|
|
|
|
||
|
Capital Expenditures (in millions): |
|
|
|
||
|
New stores, relocated stores and stores not yet opened |
$ |
93.7 |
|
$ |
59.5 |
|
Existing stores |
|
52.6 |
|
|
43.0 |
|
Information technology |
|
34.1 |
|
|
26.0 |
|
Distribution center capacity and improvements |
|
22.0 |
|
|
8.0 |
|
Corporate and other |
|
0.2 |
|
|
4.8 |
|
Total |
$ |
202.6 |
|
$ |
141.3 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260421543068/en/
investorrelations@tractorsupply.com
Source:
