Hardware Retailing The Industry's Source for Insights and Information
Ace Hardware released its financial report for Q2 2024 this week. The company reported second quarter 2024 revenues of $2.7 billion, an increase of $81.7 million, or 3.1%, from the second quarter of 2023. Net income was $114.4 million for the second quarter of 2024, a decrease of $12.3 million from the second quarter of 2023. This decrease was due to planned increases in marketing expenses and retail store expenses. The increased spending was expected to be offset by an improved gross margin rate. However, product cost deflation and higher transportation costs prevented the margin expansion.
“I’m pleased to report record second quarter revenue, a 16% increase in our digital business and 110 new stores year-to-date,” says John Venhuizen, Ace president & CEO. “During the quarter, we added our 5,000th store and are on track to add 200 new stores in 2024. I’m so appreciative of the Ace team, particularly our red-vested heroes who grace our neighborhood stores.”
The approximately 3,800 Ace retailers who share daily retail sales data reported a 1.7% decrease in U.S. retail same-store-sales during the second quarter of 2024, which was the result of a 2.6% decrease in same-store transactions, partially offset by a 0.9% increase in average ticket.
At its fall convention in Chicago this month, Ace set records for most attendees and vendors at an Ace convention and also unveiled a new store format, ELEVATE3 Ace.
