Ace Hardware Reports Q1 2026 Results
Ace Hardware Corporation reported first quarter 2026 revenues of $2.5 billion, an increase of $242.8 million, or 10.9% from the first quarter of 2025.
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Net income was $70.1 million for Q1 2026, an increase of $39.8 million from Q1 2025.
“Our record first quarter results reflect a simple truth: when we serve our neighbors with excellence and urgency, growth follows,” said John Venhuizen, Ace CEO. "Revenue up 10.9 percent, digital up 30%, and hardware format same-store sales up 6.1% with transactions rising 0.7%. Just as importantly, our team delivered a 129% increase in net income through strong growth and disciplined, judicious expense management, proof that being both fierce and frugal is still a winning formula."
The approximately 4,000 Ace retailers who share daily retail sales data reported a 4.9% increase in U.S. retail same-store-sales during the first quarter of 2026, which was the result of a 4.2% increase in average ticket and a 0.7% increase in same-store transactions.
Consolidated revenues for the quarter ended April 4, 2026, totaled $2.5 billion. Total wholesale revenues were $2.3 billion, an increase of $232.2 million, or 11.3%, as compared to the prior year first quarter. Increases were seen across many departments with outdoor power equipment, lawn and garden, and power tools showing the largest gains.
Wholesale merchandise revenues to new Ace stores activated from January 2025 through March 2026 contributed $72.3 million of incremental revenues while wholesale merchandise revenues decreased $8.5 million during the first quarter due to domestic Ace stores whose memberships were cancelled.
Wholesale merchandise revenues to comparable domestic Ace stores increased $132.4 million for the quarter.
In addition, the company’s Ace International Hardware Corporation subsidiary experienced a $3.7 million decrease in wholesale revenue.
Ace Wholesale Holdings, LLC reported a $12.5 million increase in wholesale revenues, or 9.7% due to higher sales to pro lumber and hardware customers. In addition, Ace Services Holdings which is reported as part of the company’s wholesale business, experienced a $4.4 million increase in revenues.
Total retail revenues from Ace Retail Holdings for the quarter were $185.8 million, an increase of 6.1% or $10.6 million. Per reports, the company experienced same-store sales growth of 4.1%.
Ace added 35 new domestic stores in Q1 and closed 19 locations. The company’s total domestic store count is 5,266.
Wholesale gross profit was reported at $305.8 million, an increase of $42.6 million. The wholesale gross margin percentage was 13.4% of wholesale revenues, up from 12.8% in 2025.
Retail gross profit for the quarter ended April 4 at $88.6 million, an increase of $4.6 million from Q1 2025. The retail gross margin percentage was 47.7% of retail revenues in Q1 2026, down slightly from 47.9% in Q1 2025.
The retail gross profit is based on Ace’s wholesale acquisition cost of product, not acquisition cost which includes a markup.
Per the report, Ace’s wholesale operating expenses for Q! 2026 were essentially unchanged from the first quarter of 2025. As a result, wholesale operating expenses decreased to 9.9% of wholesale revenues in the first quarter of 2026 from 11.0% of wholesale revenues in Q1 2025.
Retail operating expenses increased $6.5 million, or 8.1% from Q1 2025.
The increase was driven by expenses incurred related to the new stores added since the end of 2024. Retail operating expenses as a percentage of retail revenue increased to 46.6% in Q1 2026 from 45.7% in Q1 2025.
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