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Ace Hardware Corp. today reported both revenue and net income growth for the second quarter of 2016.
The home improvement co-op’s second-quarter 2016 revenues were $1.4 billion, a 0.6 percent increase from the second quarter of 2015. Net income for the period was $63.4 million, an increase of $3.5 million from the second quarter of 2015 and the second highest net income for a quarter in Ace Hardware’s history, according to the company.
“New store growth was the primary driver of our record revenue,” says John Venhuizen, president and CEO. “While records are nice, we are not satisfied with the growth as the enterprise and our retailers are working far too hard to settle for modest increases. Given their collective and effective execution year to date, I remain optimistic about accelerating both our growth and earnings going forward.”
For the first half of the year, Ace retailers saw 2.4 percent retail same-store sales and a 2.2 percent increase in average transaction size.
Total wholesale revenues were $1.3 billion, an increase of 0.5 percent compared to the second quarter of 2015. Outdoor living, paint and lawn and garden categories showed the largest increases in revenue.
Retail revenues from Ace Retail Holdings, which operates the Westlake Ace Hardware chain, were $87.4 million in the second quarter, for a 2.3 percent increase from the year prior.
Ace’s total U.S. store count was 4,315 at the end of the second quarter, a year-over-year increase of 59 stores.
