Ace Hardware Corp. suffered a fourth-quarter sales slump, but leadership pointed to positives for the fiscal year in announcing financial results.
The fourth quarter net income was $500,000 versus a net loss of $4.6 million in the fiscal year 2022.
The approximately 3,700 Ace stores in the United States that share daily sales data with the company reported a 5.2% decrease in retail comparable sales in the quarter year over year, which resulted from a 3.2% decrease in comp transactions and a 2% decrease in average ticket, the company stated.
Revenues were $2.12 billion, down 3% from the year-previous quarter. Wholesale revenues were $1.94 billion versus $2 billion in the year-before period, while retail revenues were $182.6 million versus $189.5 million. Operating income was $7 million versus an operating loss of $3.4 million in the year-prior quarter.
For the full year, net income was $323.4 million versus $340.6 million in fiscal 2022, when the company recorded a non-recurring gain of $21.7 million on the sale of a former retail support center.
Comps decreased 2.2% year over year, which resulted from a 1.1% decrease in comp transactions and a 1% decrease in average ticket, the company reported.
Revenues were $9.13 billion, down 0.4% from the year previous. Wholesale revenues were $8.34 billion versus $8.37 billion in the year before, while retail revenues were $786.4 million versus $797.5 million. Operating income was $361.1 million versus $341.9 million in the year prior.
“I’m pleased to announce record operating income, record shareholder distributions, and record contributions to our charitable foundation,” said John Venhuizen, president and CEO, in announcing the financial results. “With shareholder dividends of $356.5 million and pre-tax return on equity of 38.7%, the Ace team is to be commended for the discipline, production and stewardship with which they managed our resources and opportunities. While Q4 revenue was disappointing, the miss is entirely a result of lower sales on winter goods as a result of a particularly mild December.”
