#United States #financial results #Oak Brook #Ace Hardware #record earnings

Ace Hardware Reports Record Third Quarter 2026 Results

Ace Hardware Corporation has released its earnings for the third quarter of 2026, revealing remarkable financial growth that solidifies its status in the retail market. The corporation reported revenues of $2.5 billion, an increase of $53.3 million or 2.1% from the same quarter in 2025. This growth is attributed to various factors, including enhanced sales strategies and an expanding retail network.

Impressive Net Income

Furthermore, the net income during this quarter reached $142.1 million, marking a substantial increase of 42.5% compared to last year's third quarter. John Venhuizen, Ace's President and CEO, expressed his satisfaction with these results, emphasizing that they reflect the hard work and dedication of the Ace team, comprised of talented and committed individuals. He noted, "These results belong to an Ace team made up of some of retail's most humble, hungry, smart and servant-hearted people." This sentiment highlights the culture of collaboration and perseverance at Ace Hardware.

Growth in Digital Sales and Stores

A significant contributor to the financial success was a notable 12% increase in comparable digital sales and a 2.0% increase in same-store sales. Despite experiencing a 2.3% decrease in same-store transactions, higher average ticket sales of 4.5% helped offset the decline. With approximately 4,000 Ace retail stores contributing to daily sales data, the company continues to leverage its vast network effectively.

Revenue Breakdown

For the quarter ending on October 3, 2026, Ace's consolidated revenues totalled $2.5 billion. The increase is also reflected in wholesale revenues, which hit $2.3 billion, an increase of $53.8 million or 2.4% from the previous year. Major gains were documented in categories such as outdoor power equipment, holiday décor, power tools, and heating devices.

Additionally, Ace's Ace International Hardware Corporation subsidiary saw a gain of $5.2 million in wholesale revenue compared to the third quarter of 2025. This indicates a positive trajectory in both domestic and international markets.

Retail Performance

Despite these accomplishments, Ace's retail sector faced challenges, with total retail revenues from Ace Retail Group, Inc. achieving $212.6 million, decreasing slightly by 0.2% from last year's figures. One reason for this was a 2.1% decrease in same-store sales, highlighting the competitive retail environment. Nonetheless, new stores opened by Ace Retail Group since the end of the second quarter of 2025 contributed an additional $3.7 million in revenues, demonstrating continued growth in store openings.

Store Expansion

In total, Ace added 46 new domestic stores in the third quarter alone while canceling 22, resulting in a net increase, bringing the total number of domestic stores to 5,307 by the end of the quarter. As a result, the company is successfully expanding its footprint across the United States.

Gross Margin and Expenses

Looking at profitability, Ace's wholesale gross profit for the third quarter was $358.5 million, which reflects a $12.6 million increase from this time last year. The wholesale gross margin percentage improved slightly to 15.4%, up from 15.2% in Q3 2025. However, retail gross profit experienced a decrease of $2.0 million, leading to a gross margin percentage of 46.0%.

Operating expenses in the wholesale sector saw minimal increases, driven primarily by marketing and advertising spending. The retail sector, meanwhile, faced a more significant increase in operating expenses, growing by 3.9%, reflecting costs associated with new store openings.

Looking Ahead

As Ace Hardware continues to navigate a competitive landscape, the recent successes demonstrate a solid foundation for future growth. With a commitment to quality support and services to its retailers and an expanding product line, Ace is poised to maintain its upward trajectory through strategic initiatives and customer engagement. The company looks forward to sustaining its performance as it enhances its operational strategies while delivering exceptional value to its customers and stakeholders.

For more details, visit acehardware.com or Ace's newsroom for ongoing updates on their offerings and financial health.