In the first quarter, coop Ace Hardware reported inflation impacted financial results as it pushed an average ticket gain and, with it, comparable sales.
Ace posted company net income of $120.1 million versus $105.5 million in the year-earlier quarter
Comparable sales increased 1.4% across the approximately 3,500 Ace retailers in the United States who share daily retail sales data, the company noted. Estimated retail price inflation of 9.5% helped drive a 10% increase in average ticket. Comparable transactions slipped 7.8%, the company maintained.
Net retail sales were $156.6 million and wholesale revenue was $2.06 billion for a total revenue of $2.21 billion versus $162.7, $1.87 and $2.03 billion, respectively, in the year-prior quarter, according to the company. Operating income was $105.6 million versus $111.8 billion in the year-previous period.
“Our first-quarter increases in revenue and income brings our two-year stacked growth to nearly 51% and 205%, respectively,” said John Venhuizen, president and CEO. “Revenue growth from the 54 new stores we added in the first quarter was real and incremental. The remainder of the first-quarter revenue growth, however, was not as it was the result of ongoing inflation.”
Ace added 50 new domestic stores in the fiscal 2022 first quarter and canceled 11 stores, while also lately adding services.
