Retailer-owned cooperative Ace Hardware has booked lower profit for the second quarter despite sales soaring to a record high.

The company achieved record second-quarter revenues of $2.7 billion, representing an increase of 3.1 per cent year on year.

However, net income slid 9.7 per cent to $114.4 million due to planned increases in marketing and retail store expenses, as well as product cost deflation, and higher transportation costs.

Total wholesale revenues rose 3.5 per cent to $2.5 billion, while retail revenues from Ace Retail Holdings fell 0.8 per cent to $258.7 million.

The approximately 3800 Ace retailers who share daily retail sales data reported a 1.7 per cent decrease in US same-store sales, which included a 2.6 per cent decrease in same-store transactions partially offset by an increase in average ticket value. 

The company reached 5000 locations during the second quarter and is on track to add 200 new locations this year.