Despite soft sales, Ace Hardware reported a strong second quarter, thanks partly to good weather, expense control and stimulus checks.
“Although top-line revenues declined, we saw an improvement in sales trends from the first quarter, particularly in the latter half of the second quarter,” president and CEO Ray Griffith said of the Oak Brook, Ill.-based co-op’s quarterly results, which were released Aug. 12. “Second-quarter business benefited from improved seasonal weather, and the recent economic stimulus efforts appear to have helped boost consumer spending.”
Ace reported net income of $33.4 million—up 11.7 percent from the $29.5 million reported last year. Total revenues were down 2.7 percent to $1.067 billion. Merchandise sales from Ace’s international business continued to be strong and contributed $6.5 million in incremental sales, up 13.5 percent compared with 2007.
On a category basis, domestic revenues were negatively impacted by declines in the tools, paint, plumbing and electrical