Winmark Q1 Profit Slips as Company Rolls Out Ad Fund and Point-of-Sale Upgrade

Overview

• Winmark reported net income of $9,254,700, or $2.50 per diluted share, down from $9,956,400, or $2.71, a year earlier.
• The company said last year’s quarter included $2.2 million of leasing income from a litigation settlement, which makes the year-over-year change look larger.
• Management introduced two franchise support moves during the quarter: a North American advertising fund for Plato’s Closet and an upgrade to point-of-sale (checkout) systems to back ongoing marketing and tech reinvestment for store owners.
• Winmark directed investors to a March 16 Form 8-K filed with the SEC for more detail on these programs.
• The franchisor reported 1,383 operating stores, 79 awarded locations not yet open, and more than 2,800 territories available across its resale brands.