Ace Posts Record Second-Quarter Revenue, Digital Sales Soar

Ace Hardware Corporation today reported record second-quarter revenues of $2.8 billion, a 3.9 percent increase compared to the same period in 2024, and net income of $119.1 million, up 4.1 percent.

Online sales surged 18.1 percent, according to the company’s Q2 earnings report.
“Even in a macro-environment that has confounded and humbled many retailers, we delivered growth in revenue, income and digital business,” said John Venhuizen, ACE’s president and CEO. “Our team showed up with dignity, decency, character and class. That’s what makes Ace the helpful place.”
However, samestore sales declined 0.8 percent based on reports from about 4,000 Ace retailers — attributed to a 2.1 percent drop in transaction count, partially offset by a 1.3 percent rise in average ticket. Traditional hardware-format stores (excluding lumber and building materials) saw a 0.4 percent dip in comps.

Wholesale revenue is up by 3.7 percent, to $2.5 billion. New domestic Ace stores added $69.9 million in wholesale revenue, offset slightly by $10.9 million lost from cancelled memberships.

Retail-specific performance also improved. Ace Retail Holdings (ARH) reported $274.8 million in retail revenue, a 6.2 percent increase year-over-year, aided by contributions from recently opened stores. As of Q2 2025, ARH operated 261 stores, up from 240 in Q2 2024.

Ace added 38 new domestic stores during the quarter, offset by 20 closures, raising the total U.S. store count to 5,195, marking a net gain of 111 stores year-over-year.
Margin expansion contributed to improved profitability: wholesale gross profit rose by $27.0 million to $362.6 million, with gross margin improving from 13.7 percent to 14.2 percent. Retail gross profit increased $7.3 million, achieving a 43.3 percent margin, up slightly from 43.2 percent.
Rising costs and investments drove expense growth: wholesale operating expenses rose 11.6 percent, and retail operating expenses increased 7.7 percent.

Looking ahead, Ace anticipates that recent U.S. tariffs may raise its cost of goods. The company plans to pass these increases on to customers as needed but noted that the full impact remains uncertain.