#United States #Oak Brook #Ace Hardware #digital sales #revenues

Ace Hardware Reports Second Quarter Financial Results for 2025

Ace Hardware Corporation, renowned for being the largest hardware cooperative globally, has unveiled its impressive financial results for the second quarter ending June 28, 2025. The company recorded revenues of $2.8 billion, marking a growth of 3.9 percent or $105.8 million compared to the same quarter in 2024. This noteworthy achievement not only demonstrates the resilience of the Ace brand but also highlights the company’s strategic adaptability in a challenging retail environment.

Strong Performance Indicators

The net income for the quarter stands at $119.1 million, reflecting a 4.1 percent increase from the previous year. Additionally, the company reported an 18.1 percent surge in online sales, indicating a shift in consumer behavior towards digital platforms amidst market fluctuations. John Venhuizen, President and CEO of Ace, expressed his satisfaction with the performance and commended the dedicated Ace team for their tremendous efforts in enhancing customer service quality.

Revenue Breakdown

Analyzing the quarterly financial data, the wholesale revenues comprised $2.5 billion, which is a 3.7 percent rise from the prior year. Various product categories saw robust performance; especially in the lawn and garden sector, as well as within grilling, and outdoor power equipment sectors. Despite a slight decrease in same-store sales, driven by a 2.1 percent decline in transactions, the average ticket size saw a 1.3 percent increase, reflecting that customers are spending more per transaction.

The revenue from Ace's new domestic stores opened from January 2024 to June 2025 contributed $69.9 million during the quarter, showcasing the positive impact of expansion efforts, despite a couple of store cancellations leading to a $10.9 million revenue decrease in some instances.

Challenges and Strategies

While the figures suggest an overall healthy position, it’s essential to note that the retail environment remains tough. Approximately 4,000 Ace retailers reported a 0.8 percent decrease in U.S. retail same-store sales. In line with this, Ace’s management anticipates that recent tariffs may lead to increasing costs of goods, which will be passed on to customers. This strategy aims to maintain profit margins while continuing to offer quality products.

A Bright Future Ahead

Ace Hardware has been actively expanding its presence in the market and reported adding 38 new domestic stores in the second quarter, increasing the total number of stores to 5,195. The company also strategically opened 261 stores by the end of the quarter, reflecting a growth mindset.

The cooperative’s holistic approach to customer satisfaction and community involvement, coupled with their commitment to quality, strengthens their brand reputation consistently. With plans to open more stores and enhance their digital footprint moving forward, Ace Hardware is poised for sustained growth.

The company remains committed to being the go-to resource for both professional contractors and DIY enthusiasts alike, promising an array of quality products complemented by exceptional customer service. Moreover, their affiliation with Emery Jensen Distribution and other independent retailers continues to solidify their market position.

As Ace Hardware progresses further into 2025, all eyes are on how they navigate the complexities of a changing retail landscape, with a focus on maximizing customer engagement through their technological advancements and retail strategies. The commitment to maintain the company's reputation as “the helpful place” remains a cornerstone of their operations.

For more details, you can visit Ace Hardware’s website.