Academy Sports vs. Tractor Supply: A Comparison of Two Embattled Retail Stocks
Both retailers are facing the same macro softness, but one expects slightly stronger comparable sales growth in the near term.
Overview
Academy Sports and Outdoors (NASDAQ:TSCO) and Tractor Supply (NASDAQ:TSCO) haven’t delivered meaningful revenue growth. But that’s largely due to macroeconomic factors out of these companies’ control. Both stocks trade at cheap valuations relative to their earnings. Whichever company can scale and grow revenue faster in the coming years may be the one that outperforms. Here’s a comparison of where these businesses stand today and how they are looking to expand.
Academy Sports and Outdoors primarily generates revenue by selling a diverse inventory of sporting goods, outdoor recreation equipment, and athletic apparel directly to consumers through its widespread retail stores and digital platform. While it recently expanded its omnichannel capabilities by adding new same-day delivery partners and opening additional stores in satellite markets, it reported approximately 33% gross margin for the quarter ended May 2, 2026.
Details
Tractor Supply earns most of its revenue by providing rural lifestyle products, including equine and livestock supplies, hardware, and seasonal goods, to recreational farmers and ranchers across the United States. It completed the acquisition of a veterinary services business, launched a storewide expansion of its hardware categories, and reported a net income margin of about 5% for the quarter ended March 28, 2026.
Source
Originally published at www.fool.com.