Ace reports record Q2 sales
Ace Hardware Corporation reported record second quarter 2019 revenues of $1.69 billion, a 6.3% increase from revenues of $1.59 in the second quarter last year.
The Oak Brook, Ill.-based hardware cooperative also reported a second quarter net income of $53.8 million, down nearly 2% from a net income of $54.8 million for the second quarter 2018.
U.S. same-store-sales were up 1.7% for the quarter while sales at Acehardware.com increased 58%.
Total wholesale revenues were $1.53 billion, a 4% percent increase compared to the prior year second quarter.
Ace added 33 new domestic stores in the second quarter of 2019 and cancelled 23 stores. The company's total domestic store count was 4,507 at the end of the quarter, which is an increase of 84 stores from the second quarter of 2018.
On a worldwide basis, Ace added 44 stores in the second quarter of 2019 and cancelled 24, bringing the worldwide store count to 5,298 at the end of the second quarter of 2019.
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Bottom line: Ace Hardware reports record third quarter sales as profits slip 2%.
What the CEO said: "Significant growth from new stores, including 44 in the second quarter, solid same-store-sales growth and a 58% surge in revenue from acehardware.com fueled our 6.3% revenue increase," said John Venhuizen, president and CEO of Ace Hardware. "Start-up expenses for our nine new Westlake Ace stores in California, increased LIFO expense and transition expenses out of two former Emery distribution centers on the East Coast caused our net income to dip slightly for the quarter."
Company info: The full second quarter 2019 report from Ace Hardware can be accessed here.
The Oak Brook, Ill.-based hardware cooperative also reported a second quarter net income of $53.8 million, down nearly 2% from a net income of $54.8 million for the second quarter 2018.
U.S. same-store-sales were up 1.7% for the quarter while sales at Acehardware.com increased 58%.
Total wholesale revenues were $1.53 billion, a 4% percent increase compared to the prior year second quarter.
Ace added 33 new domestic stores in the second quarter of 2019 and cancelled 23 stores. The company's total domestic store count was 4,507 at the end of the quarter, which is an increase of 84 stores from the second quarter of 2018.
On a worldwide basis, Ace added 44 stores in the second quarter of 2019 and cancelled 24, bringing the worldwide store count to 5,298 at the end of the second quarter of 2019.
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Bottom line: Ace Hardware reports record third quarter sales as profits slip 2%.
What the CEO said: "Significant growth from new stores, including 44 in the second quarter, solid same-store-sales growth and a 58% surge in revenue from acehardware.com fueled our 6.3% revenue increase," said John Venhuizen, president and CEO of Ace Hardware. "Start-up expenses for our nine new Westlake Ace stores in California, increased LIFO expense and transition expenses out of two former Emery distribution centers on the East Coast caused our net income to dip slightly for the quarter."
Company info: The full second quarter 2019 report from Ace Hardware can be accessed here.