ACE HARDWARE REPORTS RECORD THIRD QUARTER 2026 RESULTS

(FSE:4AH1) Ace Hardware Corporation reported record third quarter 2026 revenues of $2.5 billion, representing an increase of $53.3 million or 2.1 percent compared to the third quarter of 2025. Net income for the third quarter of 2026 was $142.1 million, up $42.4 million or 42.5 percent from the prior year period. Patronage distributions accrued to shareholders totaled $153.6 million, an increase of 25.8 percent from the third quarter of 2025. The company reported a 12 percent increase in comparable digital sales and a 2.0 percent increase in same-store sales, while U.S. retail same-store sales rose 2.0 percent, driven by a 4.5 percent increase in average ticket and partially offset by a 2.3 percent decrease in same-store transactions. Total wholesale revenues for the quarter were $2.3 billion, up $53.8 million or 2.4 percent, with notable gains in outdoor power equipment, holiday décor, power tools, and fans and heaters. Wholesale merchandise revenues to new domestic Ace stores contributed $48.5 million in incremental revenues, while revenues decreased $8.7 million due to cancelled store memberships and decreased $20.1 million to comparable domestic stores. Ace International Hardware Corporation saw a $5.2 million increase in wholesale revenue, and Ace Wholesale Holdings, LLC reported a $16.4 million increase, or 10.8 percent, primarily from higher sales to hardware and pro lumber customers. Ace Services Holdings, LLC experienced a $4.6 million decrease in revenues. Retail revenues from Ace Retail Group, Inc. (ARG) were $212.6 million, a decrease of $0.5 million or 0.2 percent, with ARG same-store sales down 2.1 percent. New ARG stores opened since Q2 2025 contributed $3.7 million in incremental revenues, and ARG operated 267 stores at quarter end, up from 263 a year earlier. Ace added 46 new domestic stores and cancelled 22, bringing the total domestic store count to 5,307, an increase of 87 stores year-over-year. Wholesale gross profit was $358.5 million, up $12.6 million, with a gross margin of 15.4 percent, while retail gross profit was $97.9 million, down $2.0 million, with a gross margin of 46.0 percent. Wholesale operating expenses increased $0.6 million to 11.1 percent of wholesale revenues, while retail operating expenses increased $3.2 million to 39.7 percent of retail revenue. Other income, net increased $30.5 million, mainly due to a $32.2 million refund from U.S. Customs and Border Protection related to tariffs. Inventories increased $104.1 million, and long-term debt, including current maturities, increased $5.2 million. At quarter end, $443.1 million was outstanding on the revolving credit facility, $108.2 million on the ARG credit facility, and $50.3 million owed to former retailers. The company serves more than 9,050 locally owned and operated stores globally, with over 5,300 Ace retail stores in the United States and international capabilities in Ningbo, China. John Venhuizen is President and CEO. William Guzik is Executive Vice President, Chief Financial Officer & Chief Risk Officer. Jeff Gooding is Vice President, Consumer Marketing.