Ace opens 5,000th shop in Q2, plans to add 200 more
Leading US home improvement chain Ace Hardware reported second-quarter revenues of $2.7bn, up 3.1 per cent year-on-year from $2.6bn last year. The company noted that increases in outdoor power equipment, tools, lawn and garden and barbecues drove the biggest revenue growth. However, retail revenue fell 0.8 per cent year-on-year to $259 million.
Ace Hardware's second quarter net income fell $12.3 million or 9.7 per cent to $114.4 million. The company cited increased marketing expenses and higher retail shop expenses as the main reasons for the decline in net income. In addition, online sales increased by 16 per cent.
Ace Hardware continues to invest in new shops, opening its 5,000th shop this quarter and is on track to open 200 new shops this year.
which operates approximately 3,800 shops in the U.S., same-store sales declined 1.7% in the second quarter. Same-store transaction volume declined 2.6 percent, offset by a 0.9 percent increase in average unit price.
In terms of sales growth alone, Ace Hardware beat out two major competitors in the home improvement space, The Home Depot and Lowe's, in the second quarter.
Home Depot Inc. said last week that its second-quarter sales rose just 0.6 per cent to $43.2 billion, pushing the company back to growth despite a 3.3 per cent drop in overall results. Lloyd's reported worse net sales in the second quarter, down 5.5 per cent, including a 5.1 per cent drop in same-store sales.
However, Dale Fennel, Ace Hardware's vice president of sales, noted in a recent interview that the company's business model is different from those of large home improvement shops. In contrast to Home Depot and Lloyd's, most Ace Hardware shops don't offer large appliances or building materials. That difference, Fennel said, makes Ace Hardware somewhat less vulnerable to consumers' reduced willingness to buy large discretionary items.
We also sell to ACE . The main products we sell are kitchen organizer series (Bathroom Laundry Storage Baskets,Modern Napkin Holder, Kitchen Organizers With Storage Drawer, Trolley Service Shelving Cart)； tabletop series,；home organizer series and bathroom series products.
In order to cope with the ever-changing foreign trade situation, our company constantly develops new customers and new products. With a positive and innovative attitude, we lead the industry in innovation.