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Sun 25 Aug 2019 09:26 AM

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Ace Hardware reports drop in Q2 profit, as UAE, Saudi sales decline

Ace Hardware Corporation is the world's largest retailer-owned hardware cooperative

Ace Hardware reports drop in Q2 profit, as UAE, Saudi sales decline

Ace, the world’s largest retailer-owned hardware cooperative, reported a drop in revenue at its international operations outside the United States, in part due to lower sales in Saudi Arabia and the United Arab Emirates, it was reported last week.

While the Ace Hardware Corporation’s global operations reported that second quarter revenues were up 6.3 percent year-on-year to $1.69 billion, the company’s Ace Hardware International Holdings, Ltd. (AIH), which manages its operations outside the US, reported a $9.5 million decrease in wholesale revenue for the same period.

The company said in a press statement last week that the decrease in quarterly revenue for AIH was in part due to “lower sales to customers in Saudi Arabia and the UAE”.

The fall in international sales was is contract to 2017 when AIH reported that total revenues for the year had risen by $24 million to $255 million, an increase of 0.5 percent. In the company’s 2018 annual report it said the yearly increase was “primarily driven by higher sales to key retailers in Saudi Arabia, Ecuador, Puerto Rico, Israel and New Zealand”.

Profit for the company’s global operations during the second quarter of this year was down by $1 million to $53.8 million, a year-on-year decrease of 1.8 percent. A breakdown of profits for the international divisions was not reported.

Founded in 1924, Ace Hardware, which is headquartered in Oak Brook, Illinois, has more than 5,200 hardware stores in approximately 70 countries. It also has 17 distribution centres around the world, including one in Dubai.

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