TSCO Q1 sales +3.6% on store expansion, but operating income falls 6.3% on SG&A deleverage

Filed May 7, 2026 · Period ending March 28, 2026 · Compared to 10-Q May 8, 2025 · ~2 min read

Key Changes

• high

  Operating income fell 6.3% to $233.4M despite 3.6% sales growth, as SG&A expenses rose 70 basis points to 29.7% of sales driven by accelerated store openings (40 new stores vs 15 prior year) and modest 0.5% comp growth that failed to leverage fixed costs.

  MD&A: Operating Income & SG&A verify on EDGAR →
• high

  Comparable store sales turned positive at +0.5% vs -0.9% prior year, but the mix reversed: transaction count fell 1.0% while ticket rose 1.6%, indicating fewer customers spending more per visit. Companion animal category underperformed on softer demand and unfavorable product mix.

  MD&A: Comparable Store Sales verify on EDGAR →
• high

  Gross margin held flat at 36.2% as product cost discipline offset higher tariffs and delivery costs. Risk Factors now explicitly cite 2025 tariffs impacting China imports, with suppliers already raising prices and the company warning it may not find replacement vendors on favorable terms.

  MD&A: Gross Margin & Risk Factors verify on EDGAR →