Winmark ( (WINA) ) has released its Q4 earnings. Here is a breakdown of the information Winmark presented to its investors.
Winmark Corporation, known as ‘the Resale Company®’, is a prominent franchisor in the sustainability sector, offering resale franchise opportunities through brands like Plato’s Closet® and Once Upon A Child®. The company focuses on guiding entrepreneurs in establishing successful small businesses across the United States.
Winmark Corporation has reported its year-end financial results for 2023, showcasing a slight increase in net income compared to the previous year. The company achieved a net income of $40.18 million, or $11.04 per diluted share, up from $39.42 million, or $10.97 per diluted share in 2022. Despite a challenging second half, the company maintained a steady growth trajectory.
Key financial metrics reveal that Winmark’s total revenue for 2023 was $83.24 million, marking an increase from $81.41 million in 2022. The company’s decision to phase out its leasing portfolio, initiated in May 2021, impacted these results. Additionally, the fiscal year 2022 included an extra week of operations, which influenced comparative figures. The fourth quarter of 2023 saw a slight decline in net income to $9.72 million from $10.18 million in the same period last year.
The company’s leadership highlighted the positive performance of its franchise partners, although growth decelerated in the latter half of the year. Winmark continues to expand its franchise network, with 1,319 franchises in operation and over 2,800 available territories as of the end of 2023. An additional 71 franchises have been awarded but are yet to commence operations.
Looking ahead, Winmark Corporation remains optimistic about its growth prospects, driven by its commitment to sustainability and supporting small business formation. The company aims to leverage its strong franchise model to navigate future challenges and capitalize on emerging opportunities in the resale market.