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Ace Hardware Reports Record 3Q Revenues

Ace Hardware Corp. has reported record third quarter 2021 revenues of $2.0 billion, an increase of $28.1 million, or 1.4 percent, from the third quarter of 2020. Net income was $99.3 million for the third quarter of 2021, an increase of $0.6 million from the third quarter of 2020.

Accrued patronage dividend to shareholders of $296.3 million was an increase of 12.3 percent from the first nine months of 2020.

“In light of last year’s extraordinary growth, and despite significant headwinds from global supply chain disruption, I’m pleased to see increases in both the top and bottom line for the quarter,” said John Venhuizen, president and CEO.  “We added to 2020’s unprecedented surge in business, and our two-year stacked growth for the third quarter is up 32 percent in revenue and 64 percent in net income from 2019.  The Ace team continues to serve and support in a difficult environment.”

U.S. retail same-store-sales reported by the approximately 3,400 Ace retailers who share daily retail sales data rose 0.3 percent during the third quarter of 2021 and was the result of a 7.5 percent increase in average ticket, offset by a 6.7 percent decrease in same-store transactions. 

Consolidated revenues for the quarter ended October 2, 2021 totaled $2.0 billion. Total wholesale revenues were $1.8 billion, an increase of $25.3 million, or 1.4 percent, as compared to the prior year third quarter. Increases were seen across several departments with outdoor power equipment, basic electrical and power tools showing the largest gains. Wholesale merchandise revenues to new domestic stores activated from January 2020 through September 2021 contributed $53.9 million of incremental revenues during the third quarter of 2021, while wholesale merchandise revenues decreased $7.4 million during the third quarter due to domestic stores whose memberships were cancelled. 

The Company’s Ace International Holdings (AIH) subsidiary experienced a $20.5 million increase in wholesale revenue versus the third quarter of 2020. This increase was primarily the result of a $17.5 million decline in sales to AIH’s two largest customers in the third quarter of 2020, both of which experienced extensive store closures in the prior year due to the pandemic. 

Ace Wholesale Holdings reported a $4.6 million decrease in wholesale revenues from the third quarter of 2020, which was primarily due to lower sales in the hardware and pro channels.

Total retail revenues for the quarter were $189.1 million, an increase of $2.8 million, or 1.5 percent, as compared to the prior year third quarter. 

Retail revenues from Ace Retail Holdings were $185.0 million in the third quarter of 2021, an increase of $5.2 million, or 2.9 percent, from the third quarter of 2020. This increase was the result of new stores added by the Westlake Ace Hardware and Great Lakes Ace Hardware (GLA) chains since the third quarter of 2020. Westlake and GLA together operated 209 stores at the end of the third quarter of 2021 compared to 194 stores at the end of the third quarter of 2020.   

Retail revenues from Ace Ecommerce Holdings were $4.1 million in the third quarter of 2021. This was a decrease of $2.4 million, or 36.9 percent, from the third quarter of 2020, reversing the 22.6 percent pandemic related surge in the prior year.   

Ace added 48 new domestic stores in the third quarter of 2021 and cancelled 18, bringing the worldwide store count to 5,581 at the end of the third quarter of 2021.

Wholesale gross profit for the three months ended October 2, 2021 was $238.1 million, a decrease of $4.1 million from the third quarter of 2020. Retail gross profit for the three months ended October 2, 2021 was $88.7 million, an increase of $2.0 million from the third quarter of 2020.  This increase was the result of the new stores opened in 2020 and 2021.

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