Mild Winter Weather Dings Ace Hardware's Q4 Revenue

Fourth quarter revenue at Ace Hardware was down 3% as company officials pinned the decline on lower sales of winter-related products in December as a result of milder than normal temperatures in many parts of the U.S.

For the quarter ended December 30, total company revenue was $2.1 billion, down from revenue of $2.2 billion in the comparable quarter the previous year. Net income was $0.5 million for the fourth quarter of 2023, an increase of $5.1 million from a net loss of $4.6 million for the fourth quarter of 2022.  

"While Q4 revenue was disappointing, the miss is entirely a result of lower sales on winter goods as a result of a particularly mild December,” said John Venhuizen, president and CEO of Ace Hardware.

The approximately 3,700 domestic Ace stores that share daily sales data reported a 5.2% decrease in retail same-store-sales during the fourth quarter of 2023, which was the result of a 3.2% decrease in same-store transactions and a 2% decrease in average ticket.  

Consolidated revenues for fiscal 2023 were $9.1 billion, a decrease of $38.7 million, or 0.4%, as compared to the prior year. For the full year, retail same-store-sales decreased 2.2 percent, which was the result of a 1.1 percent decrease in same-store transactions and a 1.0 percent decrease in average ticket.    

Ace added 203 new domestic stores in fiscal 2023 and canceled 76 stores, bringing the company's total domestic store count to 4,994 at the end of fiscal 2023, an increase of 127 stores from the end of fiscal 2022. On a worldwide basis, Ace added 222 stores in fiscal 2023 and canceled 98, bringing the worldwide store count to 5,870 at the end of fiscal 2023.