Tractor Supply Company reported its financial results for the third quarter ended September 26, 2026, in a filing dated October 22, 2026. The company reported net sales of $3.91 billion for the quarter, representing a 5.1% increase compared to the prior year's quarter of $3.72 billion. This growth was attributed to new store openings, the acquisition of VIP Petcare, and comparable store sales growth.
Comparable store sales increased by 0.4% in the third quarter of 2026, a significant improvement compared to the 3.9% increase seen in the prior year's quarter. The company noted that comparable store sales improved sequentially throughout the quarter, moving from negative in July to modestly positive in August and further strengthening in September. Specific categories showing strength included wildlife supplies, equine & livestock, and truck, tool & hardware.
Despite the sales growth, the company reported a decrease in operating metrics. Gross profit increased 2.6% to $1.42 billion, but the gross margin rate declined to 36.4% from 37.4% in the prior year. This decline was primarily due to higher transportation and fuel costs, as well as investments to strengthen the company's price-value position. Operating income decreased 10.2% to $307.7 million, and diluted earnings per share (EPS) decreased 11.6% to $0.43 from $0.49 in the prior year.
Tractor Supply reaffirmed its financial outlook for the full fiscal year ending December 26, 2026. The company expects net sales to increase between 2.5% and 3.5% and comparable store sales to be flat to down 1%. The company projects an operating margin rate of 8.0% to 8.3% and adjusted operating margin rate of 8.5% to 8.8%. Adjusted diluted EPS is expected to be between $1.90 and $2.00.
In the third quarter, the company repurchased approximately 2.7 million shares of its common stock for $88.5 million and paid quarterly cash dividends totaling $124.9 million, returning a total of $213.4 million to shareholders. The company also opened 23 new Tractor Supply stores and closed 74 Petsense by Tractor Supply stores during the quarter.
