Hardware Retailing The Industry's Source for Insights and Information
Ace Hardware reported record third-quarter sales and profits for 2026, with higher average transaction values helping offset a decline in customer visits at its U.S. stores.
The hardware cooperative generated $2.54 billion in revenue during the quarter ended Oct. 3, an increase of 2.1% from the previous year. Net income rose 42.5% to $142.1 million, according to a Nov. 11 press release.
“It gives me a great deal of satisfaction to once again report record sales and profit for the company,” says John Venhuizen, president and CEO of Ace Hardware. “These results belong to an Ace team comprised of some of retail’s most humble, hungry, smart and servant-hearted people.”
One of the more revealing figures was the difference between customer traffic and spending. Among approximately 4,000 U.S. Ace stores reporting consistent daily sales data, same-store sales increased 2%, driven by a 4.5% rise in average transaction size despite a 2.3% decline in transactions.
Ace retailers recorded higher average transaction values despite a decline in the number of transactions, resulting in a 2% increase in same-store sales.
Comparable digital sales increased 12%, reflecting continued growth in Ace’s online business.
Category Growth and Store Expansion
Ace reported wholesale sales gains across several merchandise categories, with outdoor power equipment, holiday décor, power tools and fans and heaters recording the largest increases.
The performance of these categories offers a snapshot of where Ace retailers are finding sales opportunities, particularly in seasonal merchandise and higher-ticket products.
Ace also continued expanding its domestic store network, opening 46 stores during the quarter while canceling 22 memberships. The cooperative finished the period with 5,307 domestic stores, an increase of 87 from a year earlier.
New domestic stores activated since January 2025 contributed $48.5 million in additional wholesale merchandise revenue during the quarter. However, wholesale merchandise sales to comparable domestic Ace stores declined $20.1 million, indicating that network expansion contributed significantly to wholesale revenue growth.
Ace Wholesale Holdings, which serves hardware and professional lumber customers, reported a 10.8% increase in revenue, driven primarily by higher sales to those customers.
Retail Performance and Member Returns
Ace’s company-owned retail operations presented a different picture from the broader cooperative network. Ace Retail Group reported a 2.1% decline in same-store sales, while retail gross margin fell from 46.9% to 46%.
The cooperative also accrued $153.6 million in patronage distributions to shareholders, a 25.8% increase over the previous year’s third quarter.
Ace’s earnings increase benefited substantially from a $32.2 million tariff refund received from U.S. Customs and Border Protection. The refund accounted for much of the company’s $42.4 million year-over-year increase in net income, an important distinction when evaluating its operating performance.
Through the first nine months of 2026, Ace reported revenue of $7.99 billion, compared with $7.53 billion during the same period in 2025.
