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In the third quarter of 2024, Ace Hardware marked record revenues of $2.4 billion, an increase of 2.8% from the third quarter of 2023. Grilling, power tools and outdoor power equipment showed the largest gains.
Net income hit $99 million, down 23.8% from Q3 2023 because of higher planned expenses as Ace made investments in its supply chain infrastructure and spent $21.7 million on digital marketing to support growth.
Wholesale gross profit was $313.1 million, a decrease of $5.8 million from the third quarter of 2023, and wholesale gross margin percentage was 14.6% of wholesale revenues, down from 15.2% in the third quarter of 2023. The decrease in wholesale gross margin percentage was primarily driven by unfavorable product gross profit rates and a decrease in LIFO income from the third quarter of 2023 when certain vendor prices declined.
“In this challenging environment, it’s encouraging for me to report growth in new stores, growth in our digital business and overall growth to $2.4 billion for the quarter,” says John Venhuizen, Ace president and CEO. “I’m never particularly pleased to report a decline in net income, but it was almost exactly on plan and nearly $100 million for the three-month period. It’s a privilege to take the field with such a talented Ace team around the world.”
The approximately 3,700 Ace retailers who share daily retail sales data reported a 2.2% decrease in U.S. retail same-store sales during the third quarter of 2024, which was the result of a 2.2% decrease in same-store transactions, partially offset by a 0.1% increase in average ticket.
Ace Hardware’s total domestic store count was 5,093 at the end of the third quarter of 2024, which was an increase of 150 stores from the third quarter of 2023. The worldwide store count was 5,973 at the end of the third quarter of 2024.
