Sales gains in Q2 for Ace Hardware
Ace Hardware Corp. experienced sales gains in nearly every department, leading to second-quarter revenue of $1.74 billion, a 9.7% increase from $1.07 billion. Net income increased to $42.3 million, compared to net income of $14.9 million in the same quarter last year.
CEO John Venhuizen said the co-op is plaese with the results so far in 2013. "Sales increased in virtually every department with significant growth at both wholesale and retail from our Discovery Edge, Level 3 merchandising re-sets and branding inititatives," he said.
The second-quarter also included a charge of $6.2 million related to the closing costs of the co-op's Retail Support Center in Toledo, Ohio.
Across the Ace network, same store retail sales were up 5.3% for the quarter, with momentum gaining in June (up 6.1%) and July (up 9.8%).
The company's income statement includes a line for retail revenues -- $77.7 million for the three months ended June 29. This line tracks the company's December 2012 acquisition of Westlake Ace Hardware, which operates 86 stores in the Midwest. Same-store sales at these Ace-owned stores were down 3.4%, contributed to a cold spring that limited lawn and garden sales.
On the wholesale side, total wholesale revenues were $1.10 billion, an increase of 2.4%.
The Ace co-op added 34 new domestic stores and cancelled 19 in the second quarter. The total domestic store tally stands at 4,121 as of June 29.