Ace reports strong Q4 results
Ace Hardware Corporation is reporting fourth quarter 2024 revenues of $2.3 billion, an increase of $162.2 million (or 7.6 percent) from the fourth quarter of 2023. Full year revenues were $9.5 billion, an increase of $360.3 million (or 3.9 percent) from 2023 revenue.
The approximately 3,700 Ace retailers who share daily retail sales data reported a 1.6 percent increase in U.S. retail same-store-sales during the fourth quarter of 2024, which was the result of a 1.9 percent increase in average ticket and partially offset by a 0.3 percent decrease in same-store transactions.
For the full year, U.S. retail same-store-sales decreased 0.3 percent, which was the result of a 1.5 percent decrease in same-store transactions and partially offset by a 1.2 percent increase in average ticket.
"Strong comparable store sales during the fourth quarter from our hardware format stores, accelerated new store growth, and our continued digital advance fueled a very encouraging 7.6% increase in revenue for the quarter," said John Venhuizen, Ace's president and CEO. "With record revenue, record shareholder dividends, record contributions to the Ace Foundation, and nearly a 39 percent pre-tax return on shareholder equity, the Ace team is to be commended for the discipline, productivity, and stewardship with which they managed our resources and opportunities."
Q4 2024 highlights
Consolidated revenues for the three months ended December 28, 2024 totaled $2.3 billion. Total wholesale revenues were $2.1 billion, an increase of $142.4 million, or 7.3 percent, as compared to the prior year fourth quarter. Increases were seen across most departments, with outdoor power equipment, grilling and generators showing the largest gains.
Wholesale merchandise revenues to new domestic Ace stores activated from January 2023 through December 2024 contributed $53.9 million of incremental revenues during the fourth quarter of 2024, while wholesale merchandise revenues decreased $6.3 million during the fourth quarter due to domestic Ace stores whose memberships were cancelled.
Wholesale merchandise revenues to comparable domestic Ace stores increased $45.9 million for the quarter. The company's Ace Hardware International Holdings, Ltd. (AIH) subsidiary experienced a $2.5 million decrease in wholesale revenue from the fourth quarter of 2023. Ace Wholesale Holdings LLC (AWH) reported a $23.6 million increase in wholesale revenues from the fourth quarter of 2023 primarily due to higher sales to hardware, e-commerce and pro lumber customers.
The company's Ace Services Holdings LLC subsidiary, which is reported as part of the company's wholesale business, experienced a $5.5 million decrease in revenues from the fourth quarter of 2023.
Total retail revenues from Ace Retail Holdings LLC (ARH) for the quarter were $202.4 million, an increase of $19.8 million, or 10.8 percent, as compared to the prior year fourth quarter.
The Great Lakes Ace Hardware (GLA) chain experienced a 3.1 percent increase in same-store-sales while the Westlake Ace Hardware chain experienced a 0.1 percent decrease in same-store-sales in the quarter. The new stores opened by ARH in 2023 and 2024 contributed $18.9 million of incremental revenues during the fourth quarter of 2024. ARH operated 259 stores at the end of the fourth quarter of 2024 compared to 235 stores at the end of the fourth quarter of 2023.
Fiscal year highlights
Consolidated revenues for fiscal 2024 totaled $9.5 billion, an increase of $360.3 million, or 3.9 percent, as compared to the prior year. Total wholesale revenues were $8.7 billion, an increase of $321.3 million, or 3.9 percent, as compared to the prior year. Increases were seen across many departments with outdoor power equipment, grilling, power tools and generators showing the largest gains.
Wholesale merchandise revenues from new domestic Ace stores were $238.0 million in fiscal 2024. This increase was partially offset by a decrease in wholesale merchandise revenues of $32.9 million due to domestic Ace store cancellations. Wholesale merchandise revenues to comparable domestic Ace stores decreased $35.2 million in fiscal 2024 compared to fiscal 2023. AIH wholesale revenues decreased $1 million compared to the prior year.
AWH wholesale revenues increased $22 million compared to the prior year primarily due to higher sales to e-commerce and pro lumber customers. ASH wholesale revenues increased $46.1 million due to the inclusion of a full year of revenues from Unique Indoor Comfort (UIC) in 2024. UIC was acquired on April 12, 2023.
Total retail revenues from ARH were $825.4 million, an increase of $39 million, or 5 percent, as compared to the prior year. The GLA chain experienced a 0.7 percent increase in same-store-sales while the Westlake chain experienced a 0.7 percent decrease in same-store-sales in fiscal 2024. The new stores opened by ARH in 2023 and 2024 contributed $42.5 million of incremental revenues during fiscal 2024.
Ace added 215 new domestic stores in fiscal 2024 and cancelled 65 stores. This brought the company's total domestic store count to 5,144 at the end of fiscal 2024, an increase of 150 stores from the end of fiscal 2023. On a worldwide basis, Ace added 230 stores in fiscal 2024 and cancelled 134, bringing the worldwide store count to 5,966 at the end of fiscal 2024.
For more on Ace's financial outlook, click here.
