Ace Hardware Comps Dip In Q1

Ace Hardware reported an increase in net income and a dip in comparable store sales during the first quarter.

For the first quarter, Ace Hardware posted net income of $28.3 million versus $26.1 million in the period a year prior.

The company noted that comparable store sales reported by the approximately 3,000 Ace retailers who share daily retail sales data decreased by 0.2% versus the period the year before. The company stated that the slight decline resulted from lower customer traffic.

Revenues were $1.24 billion, up 0.1% from the year-earlier period. Wholesale revenue was flat with the year earlier at $1.19 billion while retail revenue increased to $52 million from $50.6 million. Operating income was $31.2 million versus $28.8 million in the period a year previous.

“I’m delighted to report an 8.4% increase in net income, a double digit jump in accrued patronage dividends for our owners and surpassing a global store count of 5,000 stores in the quarter,” said John Venhuizen, Ace president and CEO. “While revenue improved, our increase fell short of our expectations. And despite the obvious temptation, I’ll resist pinning the blame on the less than favorable weather.”