Ace posts a record quarter

Oak Brook, Illinois-based Ace Hardware Corporation reported third quarter 2015 revenues of $1.3 billion, an increase of $148.5 million or 13.2% from the third quarter of 2014. Net income was $54.2 million for the third quarter of 2015, an increase of $16.9 million or 45.3% from last year.

"We are delighted to announce the best third quarter sales and profit in Ace’s history," said John Venhuizen, President and CEO, Ace Hardware Corp. "The credit falls squarely on the shoulders of our world-class retailers, associates and corporate teammates.”

For the first nine months of 2015, retail same-store-sales reported by the approximately 3,000 Ace retailers who share daily retail sales data increased 5.1% while the total number of new stores increased 149 globally.

Consolidated revenues for the three months ended October 3, 2015 totaled $1.3 billion. Total wholesale revenues were $1.2 billion, an increase of $143.4 million, or 13.4%, as compared to the prior year quarter. Increases were noted across all departments with electrical, outdoor living and paint showing the largest increases.

Wholesale merchandise revenues from new domestic stores were $21.4 million in the third quarter of 2015. This increase was partially offset by a decrease in wholesale merchandise revenues of $10.5 million due to domestic store cancellations. Wholesale merchandise revenues to comparable domestic stores increased $90.7 million in the third quarter of 2015 compared to the prior year period. Note that the new store, cancelled store and comparable store amounts all exclude the impact of non-recurring Paint Studio equipment revenues in 2014.

Revenues from the company’s Ace Wholesale Holdings LLC (“AWH”) subsidiary contributed $44.8 million of the increase.

Retail revenues from Ace Retail Holdings (“ARH”) – the co-op owned Westlake Ace stores -- were $60.2 million during the third quarter, an increase of $5.1 million or 9.3%. Average ticket price increased 4.3% and customer count increased 0.8% compared to the prior year period. Same-store-sales increased 5.3% compared to the third quarter of 2014 with the largest increases in outdoor living and lawn and garden.

Ace added 36 new domestic stores in the third quarter of 2015 and cancelled 17 stores. This brought the company’s total domestic store count to 4,275 at the end of the third quarter of 2015, an increase of 28 stores from the third quarter of 2014.