Ace Builds Fiscal Year Growth, Q4 Net Income Declines

Ace Hardware Corp. has announced that net income came in at $140.9 million for fiscal 2014 versus $104.5 million for fiscal 2013. Fourth quarter net income slipped to $12.7 million from $23.4 million in the 2013 quarter, the company reported.

The fourth quarter decline derived from a 1.4 percentage point drop in the wholesale gross profit margin rate primarily driven by increased store-level merchandise reset spending and additional markdowns to clear closeout inventory, according to Ace.

About 3,000 Ace retailers share daily retail sales data with the company, and they enjoyed a strong quarter with increased customer count and average transaction size driving a 4.7% comparable store sales gain and a 4.2% comp increase for all of fiscal 2014, the company asserted.

Ace posted total fiscal 2014 revenues of $4.7 billion, an increase of 13.2% from the last fiscal year. Fiscal 2014 consisted of 53 weeks versus the 52 weeks in fiscal 2013. Excluding the 2014 53rd week, revenues advanced 12% as compared to fiscal 2013.  The company posted total revenues for the fourth quarter of $1.16 billion, up 13.6% from the 2013 period, or 8.8% discounting the 2014 53rd week.