Ace Hardware Corp. generated an overall revenue increase in its second quarter, while reporting Ace stores registered a comparable sales decline during the period.
The hardware cooperative’s corporate net income was $119.5 million versus $114.8 million in the year-prior quarter.
For 4,000 Ace retailers who share daily retail sales data with the company, year over year comparable sales declined 0.8% in the United States resulting from a 2.1% decrease in transactions, partially offset by a 1.3% increase in average ticket, the company indicated. With lumber- and building material-focused stores excluded, Ace stores in the traditional hardware format experienced a 0.4% comp decrease.
Consolidated revenue for the quarter totaled $2.82 billion, up 3.9% from the year-earlier quarter, the company reported. Total wholesale revenue was $2.55 billion, an increase of 3.7%, as compared to the prior-year second quarter. Increases occurred across most departments with lawn and garden, grilling, impulse and outdoor power equipment showing the greatest gains. Total retail revenue was $274.8 million, up 6.2% from the year-past second quarter.
Operating income was $120.4 million versus $118.6 million in the year-before quarter.
Ace reported recent tariffs impositions will increase the company’s cost of goods, something it intends to pass through to its wholesale-division customers with the expectation that they will pass the increased costs through to consumers. Ace maintained that, at this juncture, it is unable to determine the impact that tariff effects will have on its revenues, results of operations and financial condition.
“In a macro-environment that has confounded and humbled even the best retailers, I’m delighted to report a 3.9% increase in revenue, a 4.1% jump in net income, and an 18.1% surge in our digital business,” said John Venhuizen, Ace president and CEO.
