Ace Hardware reports record 2025 revenue, lower net income on international charges
Ace Hardware said fourth quarter revenues totaled $2.5 billion, up 9.9% from the same period in 2024. Excluding the extra week in the company’s 53-week fiscal year, quarterly revenues rose 4.7%. Net income for the quarter was $44.2 million, down $9.6 million from a year earlier. The prior-year quarter included a $17.8 million gain on the sale of the company’s former retail support center in Little Rock, Arkansas.
Full-year revenues reached a record $10.0 billion, an increase of 5.8% from 2024. Excluding the 53rd week, revenues rose 4.6%. Net income for fiscal 2025 was $293.4 million, down $20.7 million from fiscal 2024. The company attributed the decline primarily to $20.6 million in nonrecurring asset impairment and shutdown charges tied to international operations, along with higher interest expense and lower other income compared with the prior year.
“Comparable store growth of 0.7% from our hardware format stores, accelerated new store growth, and a 27% increase within our digital business fueled a very encouraging 5.8% increase in revenue for the year (including the 53rd week),” said John Venhuizen, President and CEO. “With record revenue, record shareholder dividends, and a 40% pre-tax return on shareholder equity, the Ace team is to be commended for the discipline, productivity, and stewardship with which they managed our resources and opportunities.”
U.S. same-store retail sales declined 0.1% in the fourth quarter, reflecting a 1.9% drop in transactions partially offset by a 1.8% increase in average ticket, according to data from about 3,900 reporting Ace retailers. For the full year, same-store sales rose 0.2% as a 1.6% increase in average ticket offset a 1.3% decline in transactions.
Wholesale revenues for the quarter were $2.3 billion, up 10.0% from a year earlier, with gains across most departments, including lawn and garden, power tools, bulbs and batteries and hardware. Retail revenues totaled $221.5 million, up 9.4%. Ace Retail Holdings operated 268 stores at the end of the quarter, compared with 259 a year earlier.
For the full year, wholesale revenues rose 5.7% to $9.2 billion and retail revenues increased 7.2% to $884.6 million. The company added 180 domestic stores and canceled 74 during fiscal 2025, ending the year with 5,250 domestic locations, a net increase of 106 stores.
Wholesale gross profit for the fourth quarter rose to $296.2 million and retail gross profit increased to $102.0 million. For the year, wholesale gross profit reached $1.3 billion and retail gross profit totaled $405.0 million. Gross margin percentages improved slightly in both wholesale and retail segments.
Wholesale operating expenses rose 5.1% in the quarter and 10.2% for the year, including the international impairment and shutdown charges. Retail operating expenses increased 16.1% in the quarter and 11.3% for the year, largely tied to new store additions.
Long-term debt increased $140.1 million from 2024. At year’s end, total equity stood at $900.1 million.
Ace said it accrued a record $361.8 million in patronage distributions for shareholders in fiscal 2025.
