Ace Hardware Reports Strong Third Quarter 2025 Financial Results
Ace Hardware Reports Strong Third Quarter 2025 Financial Results
Ace Hardware Corporation has achieved remarkable financial accomplishments in the third quarter of 2025. The company announced revenues totaling $2.5 billion, reflecting an increase of 5.5 percent compared to the same period in 2024. This surge in revenue can be largely attributed to a thriving digital sales strategy, which witnessed a staggering 34.9 percent growth from previous year, indicating a strong shift towards online retailing amidst changing market dynamics.
Key Financial Highlights
The financial results reveal a third quarter net income of $99.7 million, which is an increase of 0.7 percent compared to the same quarter in 2024. Notably, the accrued shareholder dividends rose to $122.1 million, marking a substantial 15.8 percent increase. This trend highlights Ace Hardware’s commitment to its investors and reflects the overall healthy performance of the company.
For the fourth consecutive year, Ace Hardware has secured the fifth spot in the Franchise Times rankings for the largest franchises, underscoring its position as a leader in the hardware industry. President and CEO, John Venhuizen, expressed his satisfaction with the company's performance, stating, "Ace had a very strong third quarter. I’m delighted to report a 5.5 percent increase in revenue, a 1.6 percent increase in same-store sales, and a 34.9 percent surge in our digital business."
Revenue Breakdown
The inclusive revenue for the quarter ended September 27, 2025, stood at $2.5 billion, which is a gain of $130.3 million from the previous year. The wholesale revenues contributed significantly, amounting to $2.3 billion, with an increase of 5.6 percent from the prior year.
The outdoor power equipment, grilling, fertilizers, and power tools departments were among those that exhibited significant growth. Notably, wholesale merchandise revenues from new domestic ace stores activated from January 2024 through September 2025 generated $58.4 million this quarter. However, there was a decline of $10.0 million from stores that canceled their memberships during the same period.
Ace Hardware Retail Holdings recorded total retail revenues of $213.1 million, demonstrating a 4.8 percent increase as compared to last year. The popular Great Lakes Ace Hardware chain saw a 4.6 percent rise in same-store sales, while the Westlake Ace Hardware chain made a 0.6 percent increase. With a total of 5,220 domestic stores by the end of the third quarter, this represents a growth of 127 stores since the previous year.
Profit Dynamics
Ace Hardware’s wholesale gross profit rose to $345.9 million from $313.1 million, representing an increase of $32.8 million year on year. The wholesale gross margin percentage also saw an upswing, moving from 14.6 percent to 15.2 percent. This increase came as a result of adjusting product costs to accommodate inflation while passing those costs onto customers.
On the other hand, retail gross profit reached $99.9 million, up from $94.8 million, with the retail gross margin percentage rising to 46.9 percent.
Operational Expenses
Wholesale operating expenses increased by 12.9 percent, driven by higher compensation and supply chain expenditures. Similarly, retail operating expenses rose by 9.6 percent, largely due to the operational costs associated with the newly opened stores.
Despite these increases, Ace Hardware continues to effectively manage its expenses, ensuring a solid income stream while expanding its operational capacity.
Future Outlook
With an increased long-term debt reported at $472.0 million alongside plans to bolster the digital retail segment, Ace Hardware appears poised for continued success. The company aims to further enhance its customer service and product offerings, keeping pace with evolving consumer demands in both traditional and digital markets.
The overall health of Ace Hardware as a cooperative that serves more than 8,800 local stores showcases not only financial growth but also brands' strategy to adapt to a changing retail landscape. As they continue to thrive, their presence in the home and hardware industry remains robust, ensuring they meet the needs of consumers now and in the future.
For more information, visit Ace Hardware’s official website or their newsroom.
Topics Consumer Products & Retail）
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