Ace Hardware Corporation has reported a drop in profit for the third quarter, mainly due to higher planned expenses.
The company’s net income fell from $130 million last year to $99 million, attributed to strategic investments in supply chain infrastructure and digital marketing. The reduction in profitability extended that to the second quarter when sales soared to a record high.
Meanwhile, revenue rose 2.8 per cent to $2.35 billion, with wholesale revenue up 2.7 per cent to $2.15 billion and retail revenue up 4.4 per cent to $203 million.
The approximately 3700 Ace retailers, who share daily retail sales data, reported a 2.2 per cent decrease in US same-store sales.
The company’s domestic store count was 5093 at the end of the quarter, an increase of 150 stores from the year-ago period. The worldwide store count stood at 5973 across approximately 60 countries.
“In this challenging environment, it’s encouraging for me to report growth in new stores, growth in our digital business, and overall growth to $2.4 billion for the quarter,” said John Venhuizen, president and CEO of Ace Hardware.
“I’m never particularly pleased to report a decline in net income, but it was almost exactly on plan and nearly $100 million for the three-month period,” he added.
