Ace posts 9.1% sales gain in Q3
Ace Hardware Corporation reported third quarter 2017 revenues of $1.34 billion, an increase of 9.1% from the third quarter of 2016. Net income was $53.8 million for the third quarter of 2017, an increase of 7.2% from the third quarter of 2016.
The Oak Brook, Ill.-based co-op’s sales gain was driven by retail same-store sales increase of 7.1%.
Total wholesale revenues were $1.28 billion, an increase of $105.9 million, or 9.0%, as compared to the prior year third quarter. Increases were noted across all departments with outdoor living and lawn and garden showing the largest gains.
Ace added 43 new domestic stores in the third quarter of 2017 and cancelled 34 stores, pushing the company’s total domestic store count to 4,366 at the end of the third quarter of 2017. That’s an increase of 31 stores from the third quarter of 2016.
Retail revenues from Ace Retail Holdings division – the co-op-owned Westlake Ace Hardware chain — were $65.5 million in the third quarter of 2017. This was up 9.3%, from the third quarter of 2016. The increase was primarily the result of new retail stores added since the third quarter of 2016 and a 2.9% increase in same-store sales, the company reported.
[View the co-op’s full Q3 press release here]
Looking back at a third quarter marked by hurricanes and wild fires, Ace Hardware CEO John Venhuizen tipped his hat to the team for their and disaster response efforts.
“It would be an act of ingratitude not to give special thanks to the Ace team and our heroic retailers in the hurricane impacted areas of the world,” said Venhuizen. “While the hurricane activity accounted for only 18 percent of our third quarter revenue growth, it demonstrated a massive amount of servant-hearted teamwork across the enterprise and continues to garner our prayers and support as many difficult days remain for these regions."
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True Value reports positive comps
True Value Company reported retail comparable sales up 3.3% for the third quarter. The company's "Destination Truve Value" stores showed a 4.2% gain comparable sales.
“We are very pleased to see these overall results for our retailers and this reinforces the improved sales seen by retailers that have implemented relevant remodels,” said President and Chief Executive Officer John Hartmann.
Gross billings of $492.2 million and revenue of $364.4 million in the quarter were relatively flat to the same period last year. Net margin in the quarter resulted in our year-to-date net margin being essentially flat to last year. For the full year, True Value anticipates delivering both an increased Net Margin and Patronage Dividend over last year.
“With landfall of three major hurricanes in the quarter, I would like to thank our associates and suppliers for their round the clock collaboration ensuring our retailers had what they needed to prepare and then quickly begin recovering from these devastating storms,” Hartmann said. “Our retailers demonstrated that during challenging times and always, they are there to support the communities they serve.”
The co-op posted increases in eight of the nine product categories, led by Hardware, Lumber & Building Materials followed by Hand & Power Tools, Farm & Ranch, Auto & Pet, and Seasonal. International continues to experience strong growth with warehouse sales up approximately 12% in the quarter and 18% year to date, with paint sales driving a significant portion of the growth, the company said.
Here’s how neighborhood stores give back
Veteran organizations, youth education and youth sports are among the top recipients of support from neighborhood hardware stores.
That’s one of the findings of the latest Biannual Community Involvement Survey from Ace Hardware. The survey generated responses from 110 retail stores, and found that 63% of retailers support veteran organizations. The data also showed that youth education, youth sports, local business commerce, and local emergency response are organizations supported by most respondents.
“Our retailers, who are hard-working small business owners, are passionate about giving back to the neighborhoods they serve,” said Kane Calamari, president of the Ace Hardware Foundation. “Whether it’s sponsoring a Little League team or supporting those who have served our country, Ace’s unique co-op business model empowers retailers to give back to their communities.”
- 98% of retailers who participated in the survey donated money, products, or services to any non-profit or charitable organization or cause.
- 86% contributed to youth education and advocacy programs, such as Boy Scouts of America, Girl Scouts of America, Boys & Girls Clubs of America, Big Brothers Big Sisters, 4H Club, Future Farmers of America, local school(s), other local youth education/advocacy programs, etc.
- 85% contributed to local business commerce organizations such as the Chamber of Commerce, Rotary International, Kiwanis, Lion’s Club, Knights of Columbus, etc.
- 83% contributed to youth sports activities such as Little League, Peewee Football or Cheerleading, local school teams, other local teams, etc.
- 67% contributed to local emergency response, such as their fire department, police department, etc.
In addition to local philanthropic efforts, Ace and its retailers continue to support Children’s Miracle Network Hospitals at the national level through the Ace Hardware Foundation, reinforcing Ace’s history and commitment of supporting youth-based organizations. Since the Ace Hardware Foundation was established in 1991, Ace Hardware retailers, vendor partners and corporate team members have helped raise more than $82 million for Children’s Miracle Network Hospitals, with more than $10 million donated in 2016 alone.
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