Overview

• US rural lifestyle retailer's Q2 net sales rose 2.3%, slightly missing analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Comparable store sales fell 1.5% due to weak May performance in seasonal and discretionary categories

Outlook

• Company sees fiscal 2026 net sales up 2.5% to 3.5%

• Tractor Supply expects fiscal 2026 comparable store sales between down 1% and flat

• Company projects fiscal 2026 adjusted EPS of $1.90 to $2.00

Result Drivers

• SEASONAL AND DISCRETIONARY WEAKNESS - Co said May results were pressured by softness in seasonal categories, including big-ticket items, and lower spending in discretionary categories

• CONSUMABLE CATEGORIES RESILIENT - Co said consumable, usable and edible categories remained resilient overall, partially offsetting headwinds

• HIGHER SG&A EXPENSES - Co said adjusted SG&A expenses rose due to deleverage from lower comparable store sales and higher medical claims and legal settlement expenses

Company press release: ID:nBw5MctQLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Slight Miss*	$4.54 bln	$4.58 bln (22 Analysts)
Q2 Adjusted EPS	Miss	$0.81	$0.82 (26 Analysts)
Q2 EPS		$0.69
Q2 Gross Margin		37.10%
Q2 Comparable Store Sales Growth		-1.50%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Tractor Supply Co is $37.50, about 27.7% above its July 22 closing price of $29.36

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 20 three months ago

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