Ace Hardware reports 4.6% sales gain
The co-op’s sales for the three-month period hit $1.5 billion. Net income of $51.1 declined $12.3 million from the second quarter of 2016. The company cited a $7.8 million one-time pre-tax charges primarily related to the future closure of certain warehouse and distribution facilities as part of a network reconfiguration to support future growth.
Same-store sales for the 3,000 or so Ace retailers who share daily retail sales data increased 3.2%.
“We are pleased with the 3.2% same-store-sales increase that fueled our record revenue and second quarter increase of 4.6 percent,” said CEO John Venhuizen. “I couldn’t be more proud of our local Ace owners for being named ‘America’s favorite home improvement store,’ by Market Force Information and for ranking ‘highest in customer satisfaction,’ by J.D. Power for the eleventh consecutive year.”
Total wholesale revenues were $1.4 billion, an increase of $63.1 million, or 4.7 percent, as compared to the prior year second quarter.
Increases were noted across most departments with outdoor living, housewares, impulse and tools showing the largest gains. Retail revenues from Ace Retail Holdings – Westlake Ace Hardware — were $90.3 million in the second quarter of 2017, up 3.3% from the second quarter of 2016. The increase was the result of new retail stores added since the second quarter of 2016.
Overall, Ace added 27 new domestic stores in the second quarter of 2017 and cancelled 28 stores. This brought the Company’s total domestic store count to 4,357 at the end of the second quarter of 2017, an increase of 42 stores from the second quarter of 2016.
On a worldwide basis, Ace added 52 stores in the second quarter of 2017 and cancelled 31, bringing the worldwide store count to 5,024 at the end of the second quarter of 2017.
[See the company’s second-quarter earnings release here.]
Fast-growing SRS strikes again
In recent months, McKinney, Texas-based building product distributor and roofing specialist SRS Distribution has been on an expansion streak that few rivals in the building industry can match. This week, expansion struck again with the acquisition of National Building Supply Corp., with three New Jersey locations in Belleville, Roselle and Dover.
National Building Supply was founded in 1962 and since then operated as a family business. It currently employs a team of over 30 people.
In July, SRS announced the opening of four locations – one each in North Carolina, Florida, Texas and Illinois. Prior to that, the company said it was planning to acquire SG Wholesale Roofing Supplies of Southern California. In April, it was Kohl Building Products that joined the SRS team. http://www.hbsdealer.com/article/srs-distribution-acquires-kohl-building-products
The company’s newest acquisition, National Building Supply, covers a primary market area of Northern & Central New Jersey servicing professional contractors, local homebuilders, home improvement contractors, and remodelers. Tom Lazur, National's current owner, and National's entire sales and operations team will be staying with the company to run the branches, SRS said. All National locations will continue to operate under that name and will become part of SRS's family of independent distributors.
Dan Tinker, President & CEO of SRS Distribution, said SRS has known the Lazur family for a long time.
One of the things we love about this industry is how many friends you make over time and decades later you get an opportunity like this to work together as partners. The addition of National makes us exponentially stronger in New Jersey and also provides us with access to the CertainTeed Vinyl Siding line in the region."
Tinker also like the idea of gaining access to the CertainTeed Vinyl Siding line in the region, he said.
Tom Lazur, Owner & President of National, added, "I am pleased that I have found the right partner for the future of National and look forward to joining forces with my friends at SRS. My family and I have owned and operated National as an independent distributor for almost 40 years, but felt it was time to find a partner that could help us grow the business and preserve our family's legacy for decades to come.
Lazur said the time was right to find a partner that could help the company grow and preserve the family’s legacy.
SRS is a roofing distribution holding company that, with the addition of National Building Supply, will include 192 locations in 41 states operating under the names: Suncoast Roofers Supply, Southern Shingles, Midwest Roofing Supply, River City Wholesale, Superior Distribution, Shake & Shingle Supply, Roofline Supply & Delivery, Stoneway Roofing Supply, Heritage Wholesalers, Myles F. Kelly, Commercial Distribution Specialists, B&L Wholesale Supply, Advanced Distribution Specialists, B&L Wholesale Supply, Advanced Building Products, Atlantic Roofing Distributors, Monroe Aluminum Products, National Building and Roofing Supplies, Metro Roofing Supplies, Kohl Building Products, SG Wholesale Roofing Supplies, and National Building Supply.
SRS is a portfolio company of Berkshire Partners LLC.
Sunshine Ace Hardware is in the spotlight
Sunshine Ace Hardware is hamming it up in the spotlight, having received recognition from three Southwest Florida publications.
The Naples and Bonita Springs-based retailer was named “Best Large Company” by Gulfshore Business, gold for “Best Hardware Store” by Naples Daily News and gold for “Bonita’s Best Hardware Store” by Bonita Banner.
“We are honored that members of the Southwest Florida community continue to recognize Sunshine Ace Hardware as the area’s hardware store of choice,” said Michael Wynn, president of Sunshine Ace Hardware. “We look forward to continuing our efforts in providing our valued customers with high-quality products and the exemplary, knowledgeable service that they have come to expect from our associates.”
The awards were determined by votes from readers and editors, and they were announced at Bonita Banner’s Best of Bonita Awards, Naples Daily News’ Southwest Florida Choice Awards and Gulfshore Business’ Best of Business Awards.
Sunshine Ace has been family owned and operated since 1958, with eight locations in Collier, Lee, Charlotte and Pinellas counties.