Farming supplies retailer Tractor Supply profit falls amid tariff, rate pressures

Tractor Supply Co

21/04/2026 12:46

April 21 (Reuters) - Tractor Supply TSCO.O missed first quarter revenue estimates on Tuesday, hurt by weak discretionary spending and softer demand in animal-care categories amid economic uncertainty.

Sales of nonessential items stayed weak, as a volatile tariff environment and elevated interest rates weighed on discretionary demand and costs.

Shares of the Brentwood, Tennessee-based company, which have fallen 10% so far this year, were down about 5% in premarket trading.

The retailer opened 40 new locations during the quarter,  bringing its total to 2,435 stores as of March 28, as it continues to expand its footprint to reach a broader customer base.

U.S. import tariffs have raised some input costs for the company, with its first-quarter gross margin flat from 36.2% a year ago.

Blue Mountain clothing's parent company has selectively raised prices to offset tariff pressures while running promotions on other products to retain budget-conscious shoppers.

For the quarter, the company reported net sales of $3.59 billion, missing estimates of $3.64 billion, according to data compiled by LSEG.

Comparable store sales at the company, which sells products ranging from pet food and lawn mowers to tractor components,  rose 0.5% for the three months ended March 28, compared with estimates of a 1.6% rise.

The company reported a profit of 31 cents per share, a 7.2% decline from a year ago. Analysts on average expected 34 cents per share.

Tractor Supply reaffirmed its fiscal 2026 targets.

 (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Tasim Zahid)

 ((Sanskriti.Shekhar@thomsonreuters.com))