Ace sales show up in Q3
Ace Hardware Corp., based in Oak Brook, Illinois, reported record third quarter revenue of $2.3 billion, an increase of $56 million, or 2.5%, from the third quarter of last year which saw $2.2 billion.
Ace reported net income was $130 million for the third quarter of 2023, an increase of $30 million from the third quarter of 2022.
The company said increases were seen across a majority of departments with outdoor power equipment, power tools and lawn and garden showing the largest gains.
Ace reported an increase in wholesale merchandise revenues from new domestic stores of $55.5 million during the third quarter of 2023, while wholesale merchandise revenues decreased $7.9 million during the third quarter due to domestic stores whose memberships were canceled. Wholesale merchandise revenues to comparable domestic stores decreased $43.0 million for the quarter.
The approximately 3,700 Ace retailers who share daily retail sales data reported a 0.7% decrease in U.S. retail same-store-sales during the third quarter of 2023, which was the result of a 0.5% decrease in average ticket and a 0.2 percent decrease in same-store transactions. Removing the deflationary impact of lumber stores, U.S. retail same-store-sales were up 0.6% in the third quarter of 2023.
The Bottom Line: Ace Hardware sales for the third quarter rose to $2.3 billion.
What the CEO said: “Nearly 24% growth in our digital business is a testament to the efficacy of the Ace team and the degree to which our local retailers have integrated our digital and physical assets as 90% of the business is either picked up in store, or, delivered to the customer by our retail associates,” said John Venhuizen, president and CEO.
Ace added 36 new domestic stores in the third quarter of 2023 and canceled 17 stores. The company’s total domestic store count was 4,943 at the end of the third quarter of 2023, which was an increase of 102 stores from the third quarter of 2022.
On a worldwide basis, Ace added 38 stores in the third quarter of 2023 and canceled 21, bringing the worldwide store count to 5,828 at the end of the third quarter of 2023.
Company info: Click HERE to read the Q3 2023 full financial report from Ace Hardware.
