As it identified second quarter revenues as record-setting, Ace Hardware Corp. also posted net income that included a charge for the closure of The Grommet.
For its part, the wholesale business enjoyed gains across a majority of departments in the quarter with outdoor power equipment, plumbing, paint and outdoor living showing the largest advances. The company’s second-quarter increase in wholesale merchandise revenues included a $68.6 million contribution from new domestic stores purchasing from it, partially offset by domestic store cancellations of $14.2 million. Wholesale merchandise revenues to comparable domestic stores grew $300,000 for the quarter but all of the gain was the result of estimated wholesale price inflation of 12%, the company noted.
Total retail revenues for the quarter were $258 million, an increase of 1.1% as compared to the prior-year second quarter, Ace stated. Among the gain’s drivers were new stores added by the Westlake Ace Hardware and the Great Lakes Ace Hardware chains since the 2021 second quarter. Together, Westlake and GLA operated 215 stores at the 2022 second quarter’s end versus 211 stores at the 2021 period’s end. Inflation generated year over year comparable sales increases of 0.2% at Westlake and 0.4 % at GLA during the quarter, Ace pointed out. Retail revenues from Ace Ecommerce Holdings came in at $5.6 million, a decrease of 15.2%, from the year previous, impacted by the closure of The Grommet, an operation that worked with and sold novel and innovative goods produced by various inventors and developers.
As it pursues growth, Ace added 38 new domestic stores in the quarter and canceled 12 stores. Total domestic store count was 4,816 at second quarter’s end, representing an increase of 87 stores from the year-before quarter. On a worldwide basis, Ace added 46 stores and canceled 12, bringing the global store count to 5,660 at the quarter’s end.
“Nominal growth continues to be solid,” said John Venhuizen, Ace president and CEO, in announcing the financial results. “The primary fuel has come from last year’s 182 new domestic stores, this year’s 88, and the aberrant and stubborn impact of inflation.”
