Industry News

Sales, Income Continue to Rise at Ace Hardware

Published on 2004-08-25. Author : SpecialChem


Ace Hardware Corp. reported a 6.3 percent increase in net earnings for the second quarter 2004, ended July 3, over the second quarter 2003. Income during the 2004 second quarter was $36.7 million, compared to $34.5 million last year.

Consolidated sales for the second quarter 2004 totaled $871.0 million, a 4.7 percent gain over sales of $831.8 million in the second quarter of 2003.

Earnings and sales gains also were strong for the first six months of 2004. Net earnings jumped 9.4 percent to $53.4 million from $48.8 million a year ago. Consolidated sales increased 6.8 percent to $1.660 billion versus $1.554 billion for the first six months of 2003.

David Hodnik, Ace president and CEO, said these gains followed a record year of net income set in 2003. "Enhanced customer loyalty, new merchandising assortments and special sales events all fueled these strong results in the first half of this year," he said.

"Outstanding results from our third annual national Memorial Day Weekend Sale contributed to the excellent second quarter. Participating stores have recorded gains each year over the prior year's event," Hodnik said.

"Customers recognize this sale as a staple of value. Members of the Ace Helpful Hardware Club customer loyalty program played a major role in the success of the promotion, accounting for 32 percent of total sales volume of participating stores during the four-day sale," he said.

Other factors Hodnik attributed to the positive performance included:

  • Continued gains in same-store retail sales.
  • The addition of 65 new stores with a target of adding over 1.6 million square feet of new retail space in 2004.
  • The March introduction of Ace Sensations™, a revolutionary new flat paint line that is formulated with 3M's Scotchgard™ Protector to provide maximum stain resistance and scrubability.
  • Ace retailers introduction of the new Ace private label Builders' Hardware line of products in their stores, also launched in March.
  • The opening in April of a new one million sq. ft. regional distribution center in Sacramento, Calif., to better serve growing consumer and retail demand in California and Nevada.

Looking ahead, Hodnik said he expects continued gains during the balance of the year, based on initiatives that include:

  • Heavy promotion to consumers of upcoming national sales events, including the first-ever Ace 80th Anniversary Sale scheduled for Labor Day Weekend Sept. 3 through 6 and the fourth annual One Day Sale on the day after Thanksgiving, Nov. 26.
  • Expansion by 50 percent of the existing regional distribution center in Colorado Springs, Colo.
  • Further building on Ace's surging international sales business, up 16.6 percent for the year.

Ace Hardware Corp. is the largest retailer-owned cooperative in the industry and celebrates its 80th anniversary in 2004. Ace's 4,800 independently owned hardware, home center and lumber and building materials retailers generate retail sales in excess of $13 billion. Headquartered in Oak Brook, Ill., Ace currently operates 15 distribution centers in the United States and has stores located in all 50 states and 70 countries.

Source: Ace Hardware Corp.

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