Ace Hardware Corp. reported increases in revenue and sales, including double-digit online sales growth, in its first quarter of 2018.
Ace, which released its financial results May 23, achieved revenue of $1.3 billion, an increase of 6 percent above the first quarter of 2017.
Online sales rose 34 percent and U.S. same-store sales grew 2.2 percent, according to the company.
“Our record sales growth has been fueled by a 34 percent increase in sales from AceHardware.com, combined with new store expansion from existing Ace retailers and competitor conversions,” president and CEO John Venhuizen says.
Total wholesale revenues were $1.25 billion, an increase 5.3 percent from the same period in 2017, the company reports.
Net income was $11.9 million, reflecting a decrease of $16.4 million year over year, according to Ace.
First-quarter profits were down, primarily due to the co-op’s investment in a 1.1 million-square-foot retail support center, Venhuizen says.
The facility in Fredericksburg, Pennsylvania, is part of the co-op’s efforts to restructure its distribution network to accommodate growth. The new support center will serve Ace Hardware retail stores in Pennsylvania, New York, Virginia, New Jersey and Washington, D.C.
Ace Hardware, which is headquartered in Oak Brook, Illinois, had a U.S. store count of 4,418 during the first quarter of 2018. Ace’s worldwide store count is 5,137.