Ace points to record Q1 revenue
Oak Brook, Ill.-based Ace Hardware Corp. reported record first quarter revenues of $1.31 billion, up 6.0% from the same quarter last year.
The co-op reported increases in same store sales, 2.2%; average transaction size, 3.3%; and retailer gross profit, 2.0%.
As expected due to investments in supply chain, the company’s net income declined to $11.9 million, down from $16.4 million in the first quarter of 2017.
Ace President and CEO John Venhuizen pointed to three areas of sales growth: a 34% increase from Acehardware.com, store growth from existing Ace retailers and “renewed interest from competitor conversions.”
“While first quarter profits are well below last year’s levels, most of this was expected” he said. “We invested heavily in the first quarter to get our new 1.1 million square foot Fredericksburg retail support center ready to open in June as well as to prepare for the insourcing and re-platforming of our new Acehardware.com website.”
[Click here for the co-op’s official news release.]
Ace added 28 new domestic stores in the first quarter of 2018 and cancelled 28 stores. Revenue gained from the new stores, however, was four times larger than the revenue lost from cancelled stores.
Retail revenues from Ace Retail Holdings – essentially Westlake Ace Hardware -- were $57.0 million in the first quarter of 2018. This was an increase of $5.0 million, or 9.6%, from the first quarter of 2017. The increase was the result of new retail stores added since the first quarter of 2017. Retail revenues from Ace Ecommerce Holdings LLC, which was formed in the third quarter of 2017 for the acquisition of The Grommet, were $6.1 million in the first quarter of 2018.
The co-op reported increases in same store sales, 2.2%; average transaction size, 3.3%; and retailer gross profit, 2.0%.
As expected due to investments in supply chain, the company’s net income declined to $11.9 million, down from $16.4 million in the first quarter of 2017.
Ace President and CEO John Venhuizen pointed to three areas of sales growth: a 34% increase from Acehardware.com, store growth from existing Ace retailers and “renewed interest from competitor conversions.”“While first quarter profits are well below last year’s levels, most of this was expected” he said. “We invested heavily in the first quarter to get our new 1.1 million square foot Fredericksburg retail support center ready to open in June as well as to prepare for the insourcing and re-platforming of our new Acehardware.com website.”
[Click here for the co-op’s official news release.]
Ace added 28 new domestic stores in the first quarter of 2018 and cancelled 28 stores. Revenue gained from the new stores, however, was four times larger than the revenue lost from cancelled stores.
Retail revenues from Ace Retail Holdings – essentially Westlake Ace Hardware -- were $57.0 million in the first quarter of 2018. This was an increase of $5.0 million, or 9.6%, from the first quarter of 2017. The increase was the result of new retail stores added since the first quarter of 2017. Retail revenues from Ace Ecommerce Holdings LLC, which was formed in the third quarter of 2017 for the acquisition of The Grommet, were $6.1 million in the first quarter of 2018.