Tractor Supply hampered by tariffs and sluggish demand

Published: 2026-04-21 11:06:27 ET TSCO

US retailer Tractor Supply has posted Q1 results that fell short of expectations, amid consumer caution and declining demand for certain pet-related products. The stock slumped over 8% in early trading on Tuesday.

Esteban Tesson

Published on 04/21/2026 at 11:06 am EDT

The group reported revenue of $3.59bn, missing the $3.64bn forecast, while comparable store sales grew by only 0.5%, below the 1.6% expected. This performance reflects a slowdown in discretionary spending within an uncertain economic environment.High tariffs and interest rates weighed on both costs and demand, leading to higher procurement prices. Despite these pressures, the gross margin remained stable at 36.2%. EPS came in at 31 cents, down 7.2% y-o-y, and below analysts' expectations. To mitigate these effects, the company implemented targeted price adjustments and intensified promotions to retain its customer base.Despite these results, Tractor Supply is continuing its expansion with the opening of 40 new stores over the quarter, bringing its network to 2,435 locations. The group nevertheless maintained its guidance for FY 2026, betting on a gradual improvement in the economic environment.