Tractor Supply, a Brentwood, Tennessee-based company, will close approximately 75 underperforming Petsense by Tractor Supply stores as part of a restructuring of its pet specialty retail business. The move marks one of the largest changes to the chain since the retailer acquired Petsense in 2016. The announcement accompanied the company’s second-quarter 2026 financial results, in which it also lowered its full-year financial outlook following weaker-than-expected quarterly performance.
The closures are directed to reshape the Petsense business after continued underperformance in the companion animal segment, which trailed the wider Tractor Supply business during the quarter despite showing gradual improvement through the period. As of 27 June 2026, Tractor Supply operated 209 Petsense stores across 23 US states. The closure of approximately 75 locations would reduce the chain by more than one-third.
The restructuring had an immediate financial impact on the retailer’s second-quarter results. Tractor Supply recorded a US$5.9 million inventory write-down related to the planned store closures, while impairment and other restructuring charges associated with the Petsense business totalled US$65.8 million. Combined with US$9.5 million in acquisition costs linked to its recently completed acquisition of VIP Petcare, these one-time expenses significantly affected reported earnings for the quarter.
For the quarter ended 27 June 2026, Tractor Supply reported net sales of US$4.54 billion, up 2.3 percent year over year, driven primarily by new store openings. However, comparable store sales declined 1.5 percent, reflecting weaker customer traffic. Net income fell 16.1 percent to US$360.7 million, while diluted earnings per share declined to US$0.69 from US$0.81, a year earlier.
The company said unusually adverse conditions in May, particularly softer demand for seasonal products, offset stronger performance recorded in April and June. The consumable categories remained resilient overall, but companion animal products continued to underperform relative to the broader business.
Commenting on the results, President and Chief Executive Officer Hal Lawton said, “Tractor Supply has successfully navigated many economic cycles throughout our 88-year history, and we remain confident that the long-term demand drivers supporting our business remain intact.” Added that the actions being taken are designed to improve performance over the balance of the year while positioning the company for long-term growth.
Alongside the restructuring, Tractor Supply also revised its fiscal 2026 guidance. The company now expects net sales growth of 2.5 percent to 3.5 percent, compared with its previous outlook of 4 percent to 6 percent, while comparable store sales are forecast to range from a 1 percent decline to flat. Adjusted diluted earnings per share are now expected between US$1.90 and US$2.00. Tractor Supply also withdrew the long-term financial framework introduced during its 2024 Investor Day, stating that updated long-term targets will be provided with its fourth-quarter 2026 results.
