Hardware Retailing The Industry's Source for Insights and Information
Ace Hardware Corp. reported first quarter 2024 revenues of $2.1 billion, an increase of $51.6 million, or 2.5%, from the first quarter of 2023. Increases were seen across many departments with outdoor power equipment, power tools and lawn and garden showing the largest gains.
Net income was $46.9 million for the first quarter of 2024, a decrease of $19.3 million from the first quarter of 2023. This decrease was planned in anticipation of higher operating expenses and increased interest expense. Wholesale gross profit for the three months ended March 30, 2024 was $254.3 million, an increase of $1.7 million from the first quarter of 2023.
The approximately 3,700 Ace retailers who share daily retail sales data reported a 0.4% increase in U.S. retail same-store-sales during the first quarter of 2024, which was the result of a 1.1% increase in average ticket and was partially offset by a 0.7% decrease in same-store transactions.
Total retail revenues from Ace Retail Holdings LLC for the quarter were $160.9 million, an increase of $12.7 million, or 8.6%, as compared to the prior year first quarter. The Westlake Ace Hardware chain experienced a 6.5% increase in same-store-sales while the Great Lakes Ace Hardware chain experienced a 3.5% increase in same-store-sales in the quarter. Westlake and Great Lakes Ace together operated 236 stores at the end of the first quarter of 2024 compared to 230 stores at the end of the first quarter of 2023.
Ace added 78 new domestic stores in the first quarter of 2024 and cancelled seven stores. The company’s total domestic store count was 5,065 at the end of the first quarter of 2024, which was an increase of 164 stores from the first quarter of 2023.
“Despite strong headwinds in California and Florida, our $51.6 million of sales growth was fueled primarily by our 78 new domestic Ace stores, acquisitions by our Ace Home Services business, a 0.4% increase in same-store sales and a 9% increase in our digital business,” says John Venhuizen, president and CEO. “I want to thank the entire Ace team for their extraordinary efforts, particularly as it pertains to our 2.9% increase in same-store gross profit and the 47% increase in our digital business through the Ace App.”
Ace Hardware also recently hit the second spot on the J.D. Power 2024 U.S. Home Improvement Retailer Satisfaction Study. The company received a customer satisfaction score of 676. Menards ranked highest in customer satisfaction with a score of 678 and and Home Depot (665) ranked third. The study measures customer satisfaction with home improvement retailers by examining eight dimensions: additional services; digital tools; level of trust; people; product and supplies; return policy and process; store and facility; and value given price paid.
