TSCO · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
TRACTOR SUPPLY CO /DE/ · 2026-11-05 · Importance 31 · Surprise 32 · No source text
Third-quarter fiscal 2026 gross profit increased 2.6% to $1.42 billion, but gross margin declined 92 basis points to 36.4%. The quarterly margin decline was primarily attributable to higher transportation and fuel costs and investments to strengthen the Company’s price-value position. For the first nine months, gross profit increased 2.9% to $4.41 billion and gross margin declined 25 basis points to 36.6%. Adjusted nine-month gross margin declined 20 basis points to 36.7%, primarily due to higher delivery-related transportation costs and price-value investments; reported gross profit included $5.9 million of inventory impairment related to Petsense closures.
Key facts
- Third-quarter fiscal 2026 gross profit increased 2.6% to $1.42 billion from $1.39 billion; gross margin declined 92 basis points to 36.4% from 37.4%. source
- First-nine-month fiscal 2026 gross profit increased 2.9% to $4.41 billion from $4.28 billion; gross margin decreased 25 basis points to 36.6% from 36.9%. source
- Third-quarter fiscal 2026 gross margin decline was primarily attributable to higher transportation and fuel costs and incremental investments to strengthen price-value position. source
- First-nine-month fiscal 2026 gross-margin decline was primarily attributable to higher delivery-related transportation costs and incremental investments to strengthen price-value position. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | -0.9% | Third-quarter fiscal 2026 gross profit increased 2.6% to $1.42 billion from $1.39 billion; gross margin declined 92 basis points to 36.4%… |
| margin | negative | realized | -0.3% | First-nine-month fiscal 2026 gross profit increased 2.9% to $4.41 billion from $4.28 billion; gross margin decreased 25 basis points to… |