Ace Hardware pointed to strong new store growth and its e-commerce initiatives in reporting an increase in revenues during the third quarter.
The hardware cooperative posted record third quarter 2018 revenues of $1.43 billion, an increase of $84.8 million, or 6.3%, from the third quarter of 2017. Increases were noted across all departments with paint, electrical and holiday décor showing the largest gains.
The 1.8% increase in retail same store sales during the third quarter of 2018 reported by the approximately 3,000 Ace retailers who share daily retail sales data was the result of a 3% increase in average ticket, partially offset by a 1.1% decrease in same-store transactions.
Net income was $36.3 million for the third quarter of 2018, a decrease of $17.5 million from the third quarter of 2017. The company noted that third quarter net income was down in part due to warehouse expansion costs and lower warehouse productivity.
“Strong new store growth, increased same-store sales, and a 35% increase in acehardware.com revenues helped us realize a healthy 6.3% increase in revenues during the third quarter,” said John Venhuizen, president and CEO, Ace Hardware. “However, we are not immune to the pain of the tight labor market. Expanded product assortment, higher inventory and increased warehouse employee turnover drove expenses up and profits down for the quarter. I’d like to thank the entire Ace team for their heroic efforts to get products to our retailers that were affected by the devastation of hurricanes Florence and Michael.”