Costs hit the Ace Hardware Corp. bottom line in the fourth quarter despite comparable and total sales gains.
The 3,600 Ace retailers who share daily sales data with the company reported a 5.2% fourth quarter comparable sales increase in the United States versus the year-previous period
Wholesale revenues were $2 billion, retail revenues were $189.5 million and total revenues were $2.19 billion in the quarter. Wholesale revenues were $1.86 billion, retail revenues were $204.9 million and total revenues were $2.07 billion in the year-prior period. Operating loss was $3.4 million versus operating profit of $2.1 million in the year-before quarter. An increase in cost of wholesale revenue dragged down Ace operating and net income numbers.
For the full year, company net income was $341.7 million versus $330.7 million in the year earlier, the company reported.
Full year retail comps increased 3.2% versus the year previous.
Wholesale revenues were $8.37 billion, retail revenues were $797.5 million and total revenues were $9.17 billion in the full year. Wholesale revenues were $7.78 billion, retail revenues were $812 million and total revenues were $8.59 billion in the year prior. Operating income was $341.9 million versus $338.8 million in the year before.
“Financial results for 2022, subject to all appropriate caveats implicit in an unusual year, exceeded our expectations,” said John Venhuizen, Ace president and CEO. “We are pleased to announce record revenue, record profit, record shareholder distributions, and record contributions to our charitable foundation. With shareholder dividends of $345 million and pre-tax return on equity of 39.2%, the Ace team is to be commended for the discipline, production, and stewardship with which they managed our resources and opportunities. I’m also delighted to report record contributions of $22.7 million to the Ace Foundation. The degree to which Ace serves their local communities never ceases to amaze me.”
Ace added 168 new domestic stores in fiscal 2022 and canceled 52 stores. The changes brought the company’s total domestic store count to 4,867 at fiscal 2022’s end, an increase of 116 stores from the end of fiscal 2021. On a worldwide basis, Ace added 232 stores in fiscal 2022 and canceled 69, bringing the worldwide store count to 5,746 at year’s end. Ace, headquartered in Oak Brook, IL, characterizes itself as the largest retailer-owned hardware cooperative in the world with over 5,700 locally owned and operated hardware stores in 65 countries.
