TSCO · 10-Q · 2026Q2 · Full report

Petsense Business Restructuring

TRACTOR SUPPLY CO /DE/ · 2026-08-06 · Importance 46 · Surprise 42 · In source text

Tractor Supply recorded $65.8 million of impairment and other charges in the second quarter and first six months of fiscal 2026 related to restructuring the Petsense business. The charges included $33.2 million of goodwill and intangible-asset impairments, $32.6 million of other impairment and restructuring charges, and $5.9 million of inventory impairment related to closing approximately 75 Petsense stores. The restructuring reduced reported operating income by $81.2 million when combined with inventory impairment and VIP Petcare acquisition costs.

Key facts

• Inventory impairment expense in Q2 fiscal 2026 related to closure of approximately 75 Petsense stores: $5.9 million. source
• Petsense impairment and other charges impacting SG&A in Q2 fiscal 2026: $65.8 million due to restructuring, plus acquisition costs of $9.5 million for VIP Petcare. source
• Impairment and Acquisition Costs composition: $5.9 million inventory impairment, $33.2 million goodwill and intangible asset impairment, $32.6 million other impairment and restructuring charges, and $9.5 million acquisition costs. source
• Impairment expense in first six months of fiscal 2026: $62.7 million (zero in prior year), contributing $62.7 million to variance in operating cash flows. source
• Petsense by Tractor Supply had 1 store closed during first six months (beginning period unspecified) resulting in end of period Petsense store count decreased by 1 in six-month table (stores closed (1) and (3) noted across periods). source

Impact estimates