Tractor Supply comps turn positive as Petsense falls to 135 stores

Tractor Supply's comparable store sales rose 0.4% in the third quarter, a swing from the 1.5% decline in the second, and the company said companion animal is still running below its average. The retailer closed 74 Petsense stores in the period and ended it with 135. Net sales reached $3.91B, up 5.1%, while diluted earnings per share fell to $0.43 from $0.49.

Comparable sales rose 0.4% but earnings per share fell

Tractor Supply reported results for the quarter ended September 26th, 2026, on October 22nd. Net sales were $3.91B, up from $3.72B a year earlier. Comparable store sales rose 0.4% after a 3.9% gain in the same quarter last year. Average ticket rose 0.7% and average transaction count fell 0.3%.

Our second-quarter coverage put comps at a 1.5% decline and transactions down 1.7%. Comps moved from a decline to a gain, and transactions stayed down but by a smaller margin.

Gross margin fell to 36.4% from 37.4%. Tractor Supply tied the decline to higher transportation and fuel costs and to investments in its price-value position. Selling, general and administrative expense rose as a share of sales on deleverage from lower comparable sales and startup costs for a new distribution center, partly offset by expense control. The company opened 23 new Tractor Supply stores in the quarter.

Petsense shrinks while VIP Petcare adds to sales

Tractor Supply said it closed 74 Petsense stores in the quarter, "as previously announced," and operated 135 in 21 states at quarter end. By our math, the 74 closures equal about 35% of the 209 stores the chain ran before them.

The company said net sales growth was driven by new store openings, the VIP Petcare acquisition and comparable sales growth. Its cash flow statement shows $129.8M paid for VIP Petcare over the first nine months, net of cash acquired. Our earlier coverage described a network of roughly 2,700 clinic locations across 39 states, about 1,700 of them inside Tractor Supply stores.

On pet, the company wrote: "While companion animal continued to perform below the Company average, trends have improved steadily since the first quarter." It listed big-ticket and companion animal categories as soft spots. Gains came from seasonal categories, consumables and double-digit digital growth.

CEO Hal Lawton said the company's actions around "value, pet, digital and convenience gained traction in the quarter."

Fourth quarter turns to winter with guidance unchanged

Tractor Supply reaffirmed its fiscal 2026 outlook: net sales growth of 2.5% to 3.5%, comparable store sales from a 1% decline to flat, and diluted earnings per share of $1.78 to $1.88, or $1.90 to $2.00 adjusted. Lawton said the company is "moving with urgency to sharpen our strategic priorities" and said the fourth quarter focus is being the dependable supplier customers count on throughout the winter season.

For pet operators, the number to track is the Petsense count. The filing does not say whether further closures are planned, so the 135 stores in 21 states are the baseline for the next report.

Companion animal still trails, and Petsense has about a third fewer stores than it did.

Source: Tractor Supply Company third quarter 2026 earnings release, SEC Form 8-K