On Feb. 14, Ace Hardware Corp. reported revenue and same-store sales growth for fourth-quarter and full-year 2018.
The co-op saw quarterly revenues of $1.4 billion, an increase of 5.7 percent from the fourth quarter in 2017. Revenues for the entire year were a record $5.7 billion, growing 6.1 percent above fiscal 2017.
Net income was $25.2 million for 2018’s fourth quarter, an increase of $11 million from the same period in 2017.
Net income for fiscal 2018 was $128.2 million, a decrease of $19.2 million, from fiscal 2017. This decrease was due to warehouse expansion costs, lower distribution center productivity and increased marketing and advertising expenses, according to the co-op.
“Strong new store growth, increased same-store sales and a 43 percent increase in acehardware.com revenues helped us realize a healthy 5.7 percent increase in revenues during the fourth quarter,” says John Venhuizen, president and CEO. “The 6.1 percent full-year growth fueled our $142 million dividend distribution to shareholders. While still meaningful, this is a reduction from last year driven by our expanded assortment, higher inventory and lower retail support center productivity, which drove expenses up and profit down for the year.”
A 1.3 percent increase in retail same-store sales during the fourth quarter of 2018 was the result of a 2.3 percent increase in average ticket, partially offset by a 1 percent decrease in the number of same-store transactions, according to the co-op.
The 2.3 percent increase in retail same-store sales for the full year was the result of a 3.3 percent in average ticket, partially offset by a 0.9 percent decrease in same-store transactions.
Ace Hardware Corp. is headquartered in Oak Brook, Illinois. At the end of 2018, the co-op had 4,476 stores in the U.S., for a total of 5,253 stores worldwide.
To read more about the company, read Ace’s distributor profile in the March 2019 issue of Hardware Retailing. Subscribe here to get the digital edition of the magazine sent to your inbox the moment it’s available.