Ace Hardware see record 1Q revenues

Business Wire

OAK BROOK - Ace Hardware Corp. reported first quarter 2016 revenues of $1.2 billion, an increase of $50.7 million or 4.3 percent from the first quarter of 2015.

Net income was $26.1 million for the first quarter of 2016. The decrease of $3.8 million from the first quarter of 2015 was a planned reduction due to the timing of promotions.

"Our first quarter was marked by modest revenue growth compared to the 10 percent increase in the first quarter of 2015," said President and CEO John Venhuizen. "Nevertheless, all four of our pillars of growth are ahead of plan including Ace Hardware Domestic, Ace Hardware International Holdings, Ace Retail Holdings and Ace Wholesale Holdings."

The 2.2 percent increase in retail same-store-sales reported by the approximately 3,000 Ace retailers who share daily retail sales data was primarily the result of a 2.9 percent increase in average transaction size.

Revenue increases were noted across many departments with outdoor living, electrical and tools showing the largest gains.

Wholesale merchandise revenues to comparable stores increased $15.4 million in the first quarter of 2016. Wholesale merchandise revenues to new domestic stores activated from January 2015 through March 2016 contributed $31.5 million in incremental revenues during the quarter, while wholesale merchandise revenues decreased $11.3 million due to stores that canceled their membership. The Company's Ace Wholesale Holdings LLC subsidiary contributed $10.0 million of incremental revenue in the first quarter of 2016, which was an increase of 12.8 percent from the prior year.

Retail revenues from Ace Retail Holdings were $50.6 million in the first quarter of 2016, an increase of $4.3 million, or 9.3 percent, from the first quarter of 2015. Same-store-sales increased 4.4 percent compared to the first quarter of 2015 with the largest increases in lawn and garden, electrical and outdoor living.

Ace added 24 new domestic stores in the first quarter of 2016 and canceled 33 stores, bringing the company's total domestic store count to 4,302 at the end of the first quarter of 2016, an increase of 50 stores from the first quarter of 2015.