Ace Hardware pointed to new store sales growth, solid comps and a surge in its e-commerce business as the retailer posted strong second quarter revenues.
The hardware cooperative posted record second quarter 2019 revenues of $1.69 billion, an increase of $99.8 million, or 6.3%, from the second quarter of 2018. Net income was $53.8 million for the second quarter of 2019, a decrease of $1 million from the second quarter of 2018.
The 1.7% increase in retail same-store-sales during the second quarter of 2019 reported by the approximately 3,200 Ace retailers who share daily retail sales data was the result of a 1.8% increase in average ticket partially offset by a 0.1% decrease in same-store transactions.
“Significant growth from new stores, including 44 in the second quarter, solid same-store-sales growth and a 58% surge in revenue from acehardware.com fueled our 6.3% revenue increase,” said John Venhuizen, president and CEO, Ace Hardware. “Start-up expenses for our nine new Westlake Ace stores in California, increased LIFO expense and transition expenses out of two former Emery distribution centers on the East Coast caused our net income to dip slightly for the quarter.”