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Record second quarter results at Ace

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Record second quarter results at Ace

Ace Hardware Corporation reported record second quarter 2020 revenues of $2.28 billion, an increase of $591.6 million, or 35.1%, from the second quarter of 2019. Net income was $138.9 million for the second quarter of 2020, an increase of $85.1 million from the same period of 2019.

“Same-store sales growth of 35.3% is impressive, a 493% increase in our digital business is incredible, but what I’m most pleased and impressed with is the degree to which the Ace team delivered on our highest priority of protecting our people and serving our neighbors,” said John Venhuizen, president & CEO. “The second quarter of 2020 was arguably the most difficult, unusual and yet perhaps rewarding quarter in Ace’s history.”

The 35.3% increase in U.S. retail same-store-sales during the second quarter of 2020 reported by the approximately 3,200 Ace retailers who share daily retail sales data was the result of a 14.4% increase in same-store transactions and an 18.2% increase in average ticket. Ace said its stores in the U.S. benefited from increased DIY activities by consumers sheltering in place, a shift in discretionary spending from travel and entertainment into home improvement, and consumers moving their purchases online and consolidating their store visits in order to limit potential COVID-19 exposure.

“In order to meet this unprecedented demand, we’ve hired over 900 additional warehouse specialists compared to last year, and that pace of hiring has continued into the third quarter,” Venhuizen said. “We have also accelerated our plans to grow our distribution footprint in the U.S. and will add over one million square feet of warehouse space in the next twelve months.”

Last month, Ace announced it will relocate its Tampa, Florida distribution center.

“There is certainly both a blessing and a burden in being essential” said Venhuizen. “My earnest thanks to our drivers, warehouse specialists, red-vested heroes and the entire Ace team. Our efforts to support our stores and serve our neighbors have been imperfect during this pandemic, but the sincerity, efficacy and compassion with which it was delivered was exceptional and appreciated.”

ACE Q2 2020 results infographic