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- Goodwill Impairment (new) — The company recorded $33.2 million in goodwill and intangible asset impairment charges related to the Petsense business restructuring.
Tractor Supply reports Q2 miss, takes $75M in Petsense charges, cuts FY2026 guidance
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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high
Q2 comp sales fell 1.5% (vs. +1.5% prior year) on 1.7% transaction decline; net income down 16.1% to $360.7M, diluted EPS $0.69 (adjusted $0.81, flat y/y). Company cited adverse May conditions, softness in seasonal/big-ticket items, lower discretionary spending.
Item 2.02 verify on EDGAR → -
high
Recorded $75.3M in charges: $33.2M goodwill/intangible impairment, $32.6M other impairment/restructuring (including $5.9M inventory write-down), $9.5M VIP Petcare acquisition costs. Restructuring includes planned closure of ~75 Petsense stores.
Item 2.02 verify on EDGAR → -
high
Cut FY2026 guidance: net sales +2.5% to +3.5% (from prior framework), comp sales -1% to flat, adjusted operating margin 8.5% to 8.8%, adjusted diluted EPS $1.90 to $2.00. Withdrew long-term financial framework introduced at Dec 2024 Investor Day.
Item 2.02 verify on EDGAR → -
medium
Returned $260.9M to shareholders in Q2: $135.3M in buybacks (~3.9M shares) and $125.6M in dividends. Opened 28 new Tractor Supply stores and 3 new Petsense by Tractor Supply stores.
Item 2.02 verify on EDGAR →
Summary
Tractor Supply reported a challenging Q2 2026, with comparable store sales declining 1.5% (versus a 1.5% gain in the prior-year quarter) driven by a 1.7% drop in transaction count. Net sales grew 2.3% to $4.54 billion on new store openings, but net income fell 16.1% to $360.7 million and diluted EPS dropped 14.9% to $0.69.
The company attributed the comp decline to unusually adverse conditions in May, with softness in seasonal and big-ticket items and lower discretionary spending. Adjusted for $75.3 million in charges, diluted EPS was $0.81, flat year-over-year.
The $75.3 million in charges reflect a strategic reset: $33.2 million in goodwill and intangible asset impairment, $32.6 million in other impairment and restructuring costs (including a $5.9 million inventory write-down), and $9.5 million in VIP Petcare acquisition costs. The company is closing approximately 75 Petsense stores as part of a broader restructuring to sharpen focus and strengthen its companion animal business. Management also cut full-year 2026 guidance, now expecting net sales growth of 2.5% to 3.5%, comp sales of -1% to flat, and adjusted diluted EPS of $1.90 to $2.00. The goodwill impairment and guidance withdrawal signal that the Petsense acquisition has underperformed expectations and that management is resetting both the business model and investor expectations.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Tractor Supply reported Q2 2026 results and updated full-year guidance via press release.
Added in current filing · verify on EDGAR →
On July 23, 2026, Tractor Supply Company (the "Company") issued a press release reporting its results of operations for the second quarter ended June 27, 2026.
The company disclosed its financial results for the second quarter ended June 27, 2026. The specific figures are contained in the attached press release (Exhibit 99.1), which is not included in this 8-K body.
Added in current filing · verify on EDGAR →
Additionally, the Company updated guidance for the results of operations expected for the full fiscal year ending December 26, 2026.
The company revised its outlook for the full fiscal year ending December 26, 2026. The updated guidance details are in the attached press release (Exhibit 99.1).
Event · Exhibit 99.1
Tractor Supply reported Q2 2026 results with 2.3% sales growth but -1.5% comp sales, took $75.3M in Petsense restructuring and VIP Petcare acquisition charges, and cut FY2026 guidance.
Added in current filing · view on EDGAR →
Net sales increased 2.3% to $4.54 billion from $4.44 billion in the second quarter of 2025. The increase in net sales was driven by new store openings, partially offset by the decline in comparable store sales. Comparable store sales decreased 1.5%, as compared to an increase of 1.5% in the prior year’s second quarter, reflecting comparable average transaction count decline of 1.7% and comparable average ticket increase of 0.2%.
Tractor Supply reported Q2 2026 net sales of $4.54 billion, up 2.3% year-over-year, driven by new store openings. However, comparable store sales declined 1.5% (versus +1.5% in Q2 2025), with transaction count down 1.7% and average ticket up only 0.2%. The company attributed the comp decline to unusually adverse conditions in May, with softness in seasonal and big-ticket items and lower discretionary spending, partially offset by strength in consumable/usable/edible categories and digital sales.
Added in current filing · view on EDGAR →
Net income decreased 16.1% to $360.7 million from $430.0 million in the second quarter of 2025. Diluted EPS decreased 14.9% to $0.69 compared to $0.81 in the second quarter of 2025. On an adjusted basis, net income was $423.5 million, or $0.81 per diluted share.
Q2 2026 GAAP net income fell 16.1% to $360.7 million and diluted EPS fell 14.9% to $0.69. The company recorded $75.3 million in charges ($33.2 million goodwill/intangible impairment, $32.6 million other impairment/restructuring, $9.5 million VIP Petcare acquisition costs) related to restructuring the Petsense business and the VIP Petcare acquisition. Adjusted net income was $423.5 million ($0.81 per diluted share), down from $430.0 million ($0.81 per share) in Q2 2025.
Added in current filing · view on EDGAR →
The second quarter of 2026 results include an
inventory write-down of $5.9 million related to the planned closure of approximately 75 Petsense stores.
The company is restructuring its Petsense business, including the planned closure of approximately 75 Petsense stores. This resulted in a $5.9 million inventory write-down in Q2 2026, plus $65.8 million in impairment and other charges. The restructuring is part of management's effort to sharpen strategic focus and strengthen the companion animal business.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify