Strong Comps Fuel Ace Hardware In Third Quarter

In a third quarter highlighted by its acquisition of The Grommet, Ace Hardware benefited from a strong comparable store sales increase.

Third quarter net revenues were $1.34 billion versus $1.23 billion in the year-previous period, with wholesale revenues coming in at $1.28 billion versus $1.17 billion and retail revenues coming in at $65.5 million versus $59.9 million in the fiscal year earlier.

Comparable store sales advanced 7.1% in the quarter year over year, as reported by the approximately 3,000 Ace retailers who share daily financial data. The comp gain resulted from a 4.3% increase in average ticket and a 2.7% increase in same-store transactions.

For the third quarter ended September 30, Ace Hardware posted net income of $53.8 million versus $50.2 million in the period the year before.

In the third quarter, the company acquired a majority stake in The Grommet, an e-commerce operator that sells new and innovative products created by independent entrepreneurs.

“A retail same-store sales increase of 7.1% was the predominant fuel behind our strong 9.1% overall sales increase and record setting third quarter revenue,” said John Venhuizen, Ace president and CEO.