With inflation and supply chain issues having an effect, Ace Hardware Corp. drove sales higher in the fourth quarter but net income fell.
Company net income was $9.9 million for the quarter versus $43.3 million in the year-previous period, Ace stated.
The 3,400 Ace retailers who report daily sales data saw a 6.9% increase in retail comparable sales in the fourth quarter based on a 10.5% increase in average ticket, partially offset by a 3.3% decrease in transactions.
Wholesale revenues were $1.86 billion versus $1.85 billion in the year-earlier quarter, with retail revenue at $204.9 million versus $203.6 million and total revenue at $2.07 billion versus $2.05 billion, the company noted. Operating income was $2.1 million as compared to $47.9 million in the year-before quarter.
For the full year, net income was $330 million versus $316.9 million in the year previous, Ace indicated.
Wholesale revenue was $7.78 billion versus $7.01 billion in the year earlier with retail revenue at $812 million versus $751.5 million and total revenue at $8.59 billion versus $7.76 billion, the company reported. Operating income was $338.8 million versus $333.1 million in the year-before.
Ace pointed to two-year pre-COVID-19 pandemic comparisons that, the company asserts, better reflect its current condition.
“In comparison to 2019, total revenue increased 38.6% and net income is up 129.8%,” said John Venhuizen, president and CEO, in announcing the financial results. “This transformational surge in business is driven by two-year stacked comp growth of 34.4%, digital growth of 279%, and the opening of 407 new stores globally over two years.”
Ace Hardware is a retailer-owned cooperative with over 5,500 locally owned and operated hardware stores in some 65 countries.
