Ace Hardware Corp. released its fourth-quarter and year-end financial results for 2017, showing increases in revenues and U.S. same-store sales.
The home improvement cooperative saw fourth-quarter revenues of $1.3 billion, an increase of 6.8 percent from the same period in 2016, according to a Feb. 14 press release.
Total revenues for the year were $5.4 billion, an increase of 5.1 percent compared to the year prior, the co-op reports. In addition, U.S. same-store sales were up 3.1 percent during the fourth quarter and 3.6 percent for the full year due to increases in average transaction size.
Ace Hardware’s president and CEO John Venhuizen credits the positive results to new stores and the company’s purchase of The Grommet, which is an e-commerce startup that markets and sells new product innovations.
“New store growth, a 3.1 percent increase in same-store retail sales, along with revenues from our acquisition of The Grommet at the end of the last quarter, were the predominant drivers behind our strong 6.8 percent overall sales increase and record-setting fourth quarter revenue,” Venhuizen says.
“I’m also encouraged to report that 2017 marked the fifth straight year of increased customer transactions at retail, the sixth straight year of net new store count growth, the eighth straight year of increased same-store sales and the eleventh straight year receiving the J.D. Power award for highest customer satisfaction.”
The co-op’s net income was $14.2 million for the fourth quarter of 2017, a decrease of $7.3 million from the fourth quarter of 2016, according to Ace Hardware. Additionally, the company’s net income for fiscal 2017 was $147.4 million, a decrease of $13.8 million, from fiscal 2016.
These decreases include a charge of $4.1 million due to new tax legislation enacted in 2017, as well as increased warehouse costs incurred as part of the warehouse network reconfiguration, the company reports. Excluding these unbudgeted expenses, Ace Hardware’s net income for fiscal 2017 exceeded its 2017 plan, according to the company.