Ace Hardware Corporation reported a 5.5 per cent increase in its revenue to $2.5 billion for the third quarter of this fiscal year. 

The company’s net income rose 0.7 per cent to $99.7 million, and its digital revenue increased 34.9 per cent year-on-year.

Wholesale gross profit rose $32.8 million to $345.9 million, while retail gross profit increased $5.1 million to $99.9 million. 

The company’s wholesale operating expenses increased 12.9 per cent to $29.3 million, which included non-recurring asset impairment charges related to the company’s international operations.

Retail operating expenses rose $7.1 million, or 9.6 per cent, driven by expenses related to new store openings at the end of the second quarter of last year.

“Ace had a very strong third quarter,” said John Venhuizen, Ace Hardware president and CEO. 

“I’m delighted to report a 5.5 per cent increase in revenue, a 1.6 per cent increase in same-store sales, and a 34.9 per cent surge in our digital business.”

Around 3900 Ace retailers who shared daily retail sales data reported a 1.6 per cent increase in US same-store sales during the quarter, driven by a 2 per cent rise in average ticket, partially offset by a small decline in transaction volume.

Wholesale revenues rose to $2.3 billion, up 5.6 per cent year-on-year, with growth across outdoor power equipment, grilling, fertilisers, power tools, and impulse categories. 

New domestic stores added $58.4 million in incremental revenue, while cancelled memberships reduced revenue by $10 million.

Ace Wholesale Holdings reported a 25.4 per cent increase in wholesale revenue, while Ace International Hardware saw a decline of $13.2 million, mainly due to the loss of its largest customer.

Retail revenues from Ace Retail Holdings rose 4.8 per cent to $213.1 million, with same-store sales up at both Great Lakes Ace Hardware and Westlake Ace Hardware chains. 

The company opened 41 new domestic stores and closed 16, bringing its total US store count to 5220, an increase of 127 year-on-year.