Ace Hardware reported a rise in net sales and comps for its second quarter.
Ace Hardware Corp. posted net income of $51.1 million for the second quarter of 2017, down $12.3 million from the 2016 period. In the second quarter, Ace recorded a $7.8 million of one-time pre-tax charges primarily related to the future closure of certain warehouse and distribution facilities. The charge and higher expenses hit net income.
The company reported a 3.2% increase in comparable store sales from the 3,000 of its affiliated retailers who share daily retail sales data, a gain it attributed primarily to the combination of more favorable weather and strong retail execution.
Net revenues for the second quarter were $1.49 billion, up 4.6% from last year’s period. Wholesale revenues were $1.4 billion versus $1.34 billion in the year-earlier period and retail revenues were $90.3 million versus $87.4 million. Operating income was $53.6 million versus $67.3 million in the year-prior quarter.
“We are pleased with the 3.2% same store sales increase that fueled our record revenue and second quarter increase of 4.6%,” said John Venhuizen, Ace president and CEO. “And 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.”