Home Inflation Boosts Ace Q1 Comps
May 23, 2022
Inflation Boosts Ace Q1 Comps
Posted In: Retail Articles

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In the first quarter, coop Ace Hardware reported inflation impacted financial results as it pushed an average ticket gain and, with it, comparable sales.

Ace also announced that it had once again earned J.D. Power’s highest ranking for customer satisfaction among home improvement retail stores, the 15th time in the past 16 years that the company came in on top of the annual J.D. Power U.S. Home Improvement Retailer Satisfaction Study. Lowe’s Cos. and Menard’s followed Ace in the results.

Ace posted company net income of $120.1 million versus $105.5 million in the year-earlier quarter

Comparable sales increased 1.4% across the approximately 3,500 Ace retailers in the United States who share daily retail sales data, the company noted. Estimated retail price inflation of 9.5% helped drive a 10% increase in average ticket. Comparable transactions slipped 7.8%, the company maintained.

Net retail sales were $156.6 million and wholesale revenue was $2.06 billion for a total revenue of $2.21 billion versus $162.7, $1.87 and $2.03 billion, respectively, in the year-prior quarter, according to the company. Operating income was $105.6 million versus $111.8 billion in the year-previous period.

“Our first-quarter increases in revenue and income brings our two-year stacked growth to nearly 51% and 205%, respectively,” said John Venhuizen, president and CEO.  “Revenue growth from the 54 new stores we added in the first quarter was real and incremental. The remainder of the first-quarter revenue growth, however, was not as it was the result of ongoing inflation.”

Ace added 50 new domestic stores in the fiscal 2022 first quarter and canceled 11 stores, while also lately adding services.

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