Ace Hardware Corp. posted record revenues for the second quarter, and the hardware retail cooperative pointed to 2019 to highlight a two-year income gain.
Ace reported second-quarter revenues of $2.47 billion, up 8.2% versus the year-prior quarter. Total retail revenues for the quarter were $255.3 million, up 2.4% versus the year-before period. Total wholesale revenues gained 9% to $2.2 billion.
U.S. comparable sales reported by the approximately 3,400 Ace members who share daily retail sales data rose 1.2% during the quarter. The gain resulted from a 7.1% increase in average ticket, partially offset by a 5.5% decrease in same-store transactions versus the year-before quarter when COVID-19 shopping restrictions kept many other retailers dark, Ace noted.
Net income was $116 million, down $22.9 million from the year-previous period, the company reported, due to writedowns of excess personal protective equipment, higher warehouse labor costs and a non-recurring $6.9 million income tax benefit recorded in 2020 due to changes in tax laws.
“Our second quarter vastly exceeded our expectations. Not only did we positively comp 2020’s unprecedented surge in business, our two-year stacked growth for the quarter is up 46% in revenue and 116% in net income from 2019,” said John Venhuizen, Ace president and CEO.
Ace Hardware is a retailer-owned hardware cooperative with more than 5,500 locally owned hardware stores in about 65 countries.