Ace Hardware revenues were up in the second quarter, fueled by the performance of its domestic stores.
The hardware cooperative reported record second quarter 2018 revenues of $1.59 billion, an increase of 6.4%, from the second quarter of 2017. Total wholesale revenues were $1.47 billion, an increase of 4.9%, as compared to the prior year second quarter. Increases were noted across most departments with lawn and garden, outdoor living and electrical showing the largest gains. Total retail revenues for the quarter were $117.7 million, an increase of 30.3%, as compared to the prior year second quarter.
Retail revenues from Ace Ecommerce Holdings, which was formed in the third quarter of 2017 for the acquisition of The Grommet, were $7.9 million in the second quarter.
The 3.3% increase in retail same store-sales during the second quarter of 2018, reported by the approximately 3,000 Ace retailers who share daily retail sales data, was the result of a 4.1% increase in average ticket, partially offset by a 0.8% decrease in same-store transactions.
Net income was $54.8 million for the second quarter of 2018, an increase of 7.2% from the second quarter of 2017.
“We continued to see revenue growth across all of our business units in the second quarter, with the strongest results coming from our local owners in the domestic business which increased almost 6%,” said John Venhuizen, president and CEO, Ace Hardware. “And I’m delighted with our 7.2% net income growth despite the expense pressures from our material investments in both our wholesale infrastructure and our digital expansion. We successfully shipped our first order from our new 1.1 million square foot Fredericksburg retail support center on June 4 and launched our new hyper-localized Acehardware.com website on July 30, which was up 34% in the second quarter.”