Ace Hardware reported mixed results for its first quarter, posting revenue gains but a decrease in net income.
For its 2016 first quarter ended April 2, Ace Hardware Corp. posted revenues of $1.2 billion, an increase of $50.7 million or 4.3% from the first quarter of 2015.
The company reported a 2.2% increase in retail same store sales based on the approximately 3,000 Ace retailers who share daily retail sales data, along with a 2.9% increase in average transaction size. Sales increases were noted across departments with outdoor living, electrical and tools showing the largest gains, the hardware cooperative said.
Net income was reported as $26.1 million for the first quarter of 2016, a decrease from the previous first quarter due to a planned reduction and the timing of promotions, the company said.
“Our first quarter was marked by modest revenue growth compared to the 10% increase in the first quarter of 2015,” said John Venhuizen, president and CEO, Ace Hardware. “Nevertheless, all four of our pillars of growth are ahead of plan including Ace Hardware domestic, international, retail and wholesale.”
Ace added 24 new domestic stores in the first quarter of 2016 and cancelled 33 stores. This brought the company’s total domestic store count to 4,302 at the end of the first quarter.