Tractor Supply grows digital sales despite a challenging Q2

Tractor Supply Company reported double-digit digital sales growth and a surge in last-mile delivery volume in its fiscal Q2 ended June 27. However, neither metric was large enough to offset a difficult May sales month, the retailer said. 

As a result, Tractor Supply cut its full-year outlook and withdrew its long-term outlook originally introduced in December 2024. 

Net sales increased 2.3% to $4.54 billion in Q2, largely driven by new store openings. Comparable stores sales decreased 1.5% over the same period, counteracting the 1.5% growth in the same category in Q2 2025.

Comparable average transaction count declined 1.7%, while average ticket stayed nearly flat, increasing 0.2%. Net income decreased 16.1% to $360.7 million from $430.0 million.

In fiscal Q2, Tractor Supply opened 28 new Tractor Supply locations and three new Petsense stores.

Tractor Supply is No. 83 in the Top 1000 Database. The market research tool ranks North America’s largest online retailers by their annual ecommerce sales.

Tractor Supply Q2 digital results

Tractor Supply’s double-digit digital sales gain was led by its deliver-from-store capability, higher web traffic, and improved conversion. 

Delivery from its stores, in particular, is scaling faster than originally planned. The company completed as many last-mile deliveries in the first half of 2026 as it did in all of 2025, CEO Hal Lawton said.

Loyalty also played a role in digital growth. Neighbor’s Club, Tractor Supply’s loyalty program, now accounts for more than 80% of total sales, providing the customer data the company uses to drive targeted digital marketing and personalization across channels.

Tractor Supply’s poor May performance

May’s results were meaningfully worse than those in April and June, Lawton told investors, citing multiple factors.

First, he noted that fuel prices peaked during what is typically the height of the spring sales season, putting downward pressure on customers’ discretionary income. He also noted that drought conditions in southeastern markets reduced consumer demand for lawn care and other usual seasonal purchases.

When Tractor Supply’s Q2 ended, the price of a barrel of crude oil was around $72. By the time Tractor Supply reported earnings, that price climbed to about $92. In May, though, the price reached about $107. For comparison, it was about $66 when the United States and Israel began their war with Iran at the end of February, according to historical data from Trading Economics.

Seasonal big-ticket items, like riding lawn mowers, were especially hard hit, chief financial officer Kurt Barton added.

Despite the challenges, “we believe that the fundamentals supporting the rural lifestyle, pet ownership, and property maintenance remain attractive. Like we’ve done throughout our history, we’re not waiting for the environment to improve,” Lawton said. 

Tractor Supply is responding by continuing to invest in two areas in which it sees the most opportunity: strengthening the pet business and doubling down on its value proposition.

Tractor Supply’s pet business in Q2

During the call, Lawton announced that the retailer would close 75 underperforming Petsense stores of its total 209. Petsense is a specialty pet-care retailer that Tractor Supply acquired in 2016.

“The Petsense business is not directly connected to the core Tractor Supply business,” Lawton said. “We feel like this doesn’t do anything in terms of impacting our pet re-acceleration in the core Tractor Supply business.” 

Tractor Supply remains committed to the pet business overall, which accounts for about 20% of the retailer’s addressable market and where growth remains “challenged,” Lawton said. 

In May, Tractor Supply acquired VIP Petcare, the largest mobile veterinary care clinic in the U.S., which already operated clinics in 1,700 Tractor Supply locations. It also owns Allivet, an online pet and animal pharmacy.

Both VIP Petcare and Allivet are integrated as core parts of Tractor Supply, Lawton said. 

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