US hardware cooperative Ace Hardware increased third-quarter net income by 42.5 per cent to 142.1 million dollars, helped by a 32.2 million dollar tariff refund. Revenue rose 2.1 per cent. Larger purchases lifted sales across reporting US stores even as transactions declined, while the company-owned retail operation recorded lower same-store sales.
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Tariff refund lifts quarterly profit
Ace Hardware, a US cooperative supplying hardware retailers, reported net income of 142.1 million dollars for its third quarter ended 3 October. Profit increased by 42.4 million dollars, or 42.5 per cent, from a year earlier. A 32.2 million dollar refund of previously paid tariffs contributed to that increase. The payment came from US Customs and Border Protection and concerned duties charged under the International Emergency Economic Powers Act.[1], [2]
The refund was the main reason net other income increased by 30.5 million dollars. Revenue grew more slowly than net income, rising 2.1 per cent, or 53.3 million dollars, to approximately 2.5 billion dollars. Wholesale revenue accounted for 2.3 billion dollars of the total and increased 2.4 per cent over the comparable quarter.[1]
Larger purchases offset fewer transactions
Approximately 4,000 US stores regularly supplying daily sales data recorded a 2 per cent increase in same-store sales. Average spending per transaction rose 4.5 per cent, while the number of transactions declined 2.3 per cent. Chief executive John Venhuizen also reported 12 per cent growth in comparable digital sales.[1]
Company-owned Ace Retail Group recorded a different result: revenue slipped 0.2 per cent to 212.6 million dollars and same-store sales fell 2.1 per cent. The retail subsidiary operated 267 stores, compared with 263 a year earlier. Its gross margin declined from 46.9 per cent to 46 per cent, while the wholesale gross margin rose from 15.2 per cent to 15.4 per cent.[1]
New stores add wholesale revenue
Ace added 46 domestic stores and cancelled 22 memberships during the quarter. It ended the period with 5,307 US stores, 87 more than a year earlier. Stores activated between January 2025 and September 2026 contributed 48.5 million dollars in additional wholesale merchandise revenue. Cancelled memberships reduced that revenue by 8.7 million dollars, and sales to comparable domestic stores declined 20.1 million dollars. Inventories increased by 104.1 million dollars from a year earlier. At quarter-end, borrowings included 443.1 million dollars on the revolving credit facility and 108.2 million dollars on Ace Retail Group’s credit facility.[1]
