Ace Hardware 2023 Q4 Shows 3% Decrease from Previous Year
Ace Hardware reported fourth quarter 2023 revenues of $2.1 billion, a decrease of $66.7 million, amounting to 3 percent less than the fourth quarter of 2022. Net income was $500,000 for the fourth quarter of 2023, an increase of $5.1 million from a net loss of $4.6 million for the fourth quarter of 2022.
Revenue for 2023 was $9.1 billion, a decrease of $38.7 million, or 0.4 percent, from 2022 revenue. Net income for fiscal 2023 was $323.4 million, a decrease of $17.2 million, from fiscal 2022 when Ace recorded a non-recurring gain of $21.7 million on the sale of a former Retail Support Center.
“I’m pleased to announce record operating income, record shareholder distributions and record contributions to our charitable foundation,” said John Venhuizen, Ace Hardware president and CEO. “With shareholder dividends of $356.5 million and pre-tax return on equity of 38.7 percent, the Ace team is to be commended for the discipline, production, and stewardship with which they managed our resources and opportunities.”
The roughly 3,700 domestic Ace stores that share daily sales data reported a 5.2 percent decrease in retail same-store-sales during the fourth quarter of 2023, which was the result of a 3.2 percent decrease in same-store transactions and a 2 percent decrease in average ticket. For the year, retail same-store-sales decreased 2.2 percent, which was the result of a 1.1 percent decrease in same-store transactions and a 1 percent decrease in average ticket.
“While Q4 revenue was disappointing, the miss is entirely a result of lower sales on winter goods as a result of a particularly mild December,” Venhuizen said. Decreases were seen across a majority of departments with plumbing, outdoor power equipment, and grilling showing the largest declines.
Total retail revenues from Ace Retail Holdings LLC for the fourth quarter were $182.6 million, a decrease of $6.9 million, or 3.6 percent, compared to the prior year fourth quarter. The Westlake Ace Hardware chain experienced a 6.1 percent decrease in same-store-sales, while the Great Lakes Ace Hardware chain experienced a 10.1 percent decrease in same-store-sales in the fourth quarter. The new stores opened by Westlake and Great Lakes since the third quarter of 2022 contributed $6.2 million of incremental revenues during the fourth quarter of 2023. Westlake and Great Lakes together operated 235 stores at the end of the fourth quarter of 2023 compared to 222 stores at the end of the fourth quarter of 2022.
