Ace Hardware Building On Q2 Momentum

The second quarter registered gains at Ace Hardware as its role as an essential retailer in the U.S. in the COVID-19 pandemic gave it a basis to do more for the customer.

For the quarter, net income attributable to Ace was $139.1 million versus $53.7 million in the year-past period.

U.S. store comparable sales jumped up 35.3% versus the period a year before. In the same timeframe, e-commerce revenues improved by 493% year over year.

Wholesale revenues in the quarter were $2.03 billion and retail revenues were $249.2 million for a total of $2.28 billion. In the 2019 period, wholesale revenues were $1.53 billion and retail revenues were $158.7 million for a total of $1.69 billion. Operating income was $138.4 million versus $54.1 million in the quarter a year prior.

Wholesale merchandise revenues to new domestic stores activated from January 2019 through June 2020 contributed $56.5 million of second quarter incremental revenues even as wholesale merchandise revenues decreased $9.4 million due to cancellation of some domestic store memberships. Wholesale merchandise revenues to comparable domestic stores increased $394.6 million in the quarter versus the year-previous period, with gains across nearly all departments led by grilling, power tools and outdoor power equipment.

“Same-store sales growth of 35.3% is impressive, a 493% increase in our digital business is incredible, but what I’m most pleased and impressed with is the degree to which the Ace team delivered on our highest priority of protecting our people and serving our neighbors,” said John Venhuizen, Ace president and CEO. “The second quarter of 2020 was arguably the most difficult, unusual and yet perhaps rewarding quarter in Ace’s history. In order to meet this unprecedented demand, we’ve hired over 900 additional warehouse specialists compared to last year, and that pace of hiring has continued into the third quarter. We have also accelerated our plans to grow our distribution footprint in the U.S. and will add over one million square feet of warehouse space in the next 12 months.”