Big gains for Ace Hardware
Full year and fourth quarter results set new records for the co-op.
Ace Hardware Corp. rode a surging wave of home-improvement demand to set financial records in the recent fourth quarter and full year.
For the quarter, Ace reported revenues of $2.1 billion, an increase of 39.2%, from the fourth quarter of 2019. Full year revenues increased 27.9% to $7.8 billion. Both of those gains mark new highs for the Oak Brook, Ill.-based co-op.
Even without counting the extra week in the fiscal calendar, Ace revenues increased 32.4% and 26.2% for the quarter and the year, respectively.
Also impressive were the numbers generated by stores.
Retail same store sales increased 28.7% during the fourth quarter of 2020, based on data collected from some 3,300 Ace retailers who share their data. That growth was the result of a 16.4% increase in average ticket and a 10.5% increase in same-store transactions. For the full year, a 25.9% increase in retail same-store-sales resulted from a 14.7% increase in average ticket and a 9.8% increase in same-store transactions.
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The bottom line: Full year net income increased 125.7% to $316.9 million.
What the CEO said: “The fourth quarter was yet again one of the most extraordinary in Ace’s history,” said John Venhuizen, President and CEO. “We’ve always believed that we were blessed to be in the business of serving others. And now, after a year like 2020, we feel blessed to be an essential retailer with strong suppliers, an expansive supply chain and amazing people. Ace employees in our stores and our warehouses withstood the massive surge in demand as consumers channeled a disproportionate share of their discretionary spending into their homes and gardens."
More company info: Worldwide store count increased by 201 to a total of 5,463. Check out the company’s infographic below, and the full press release here.