For the first quarter, Ace Hardware Corp. reported higher revenues but lower profits as it looked to greater operating and interest expenses, it announced.
The approximately 3,700 Ace retailers who share daily retail sales data with Ace reported a 0.4 % comparable sales advance in the United States versus the year-prior quarter. The gain came from a 1.1% increase in average tickets, partially offset by a 0.7% decrease in transactions versus the year-past period.
Total revenues were $2.14 billion, with wholesale revenues of $1.98 and retail revenues of $160.9 million, Ace indicated. In the quarter a year previous, total revenues were $2.09 billion, with wholesale revenues of $1.94 billion and retailer revenues of $148.2 million.
Operating income was $55.1 million versus $73.1 million in the year-before quarter, the company noted.
In terms of merchandising categories, Ace stated that outdoor power equipment, power tools and lawn and garden equipment enjoyed the best sales gains.
“Despite strong headwinds in California and Florida, our $51.6 million of sales growth was fueled primarily by our 78 new domestic Ace stores, acquisitions by our Ace Home Services business, a 0.4% increase in same-store sales, and a 9% increase in our digital business,” said John Venhuizen, Ace president and CEO, in announcing the financial results. “I want to thank the entire Ace team for their extraordinary efforts, particularly as it pertains to our 2.9% increase in same-store gross profit and the 47% increase in our digital business through the Ace app.”
In addition to the 78 added in the United States, Ace canceled seven stores in the first quarter, which brought total domestic store count to 5,065 by 2024’s end, an increase of 164 from the 2023 first quarter. On a global basis, Ace added 82 stores in the quarter and canceled seven, bringing the worldwide store count to 5,945.
