Winmark Corporation (WINA) Bundle
An Overview of Winmark Corporation (WINA)
General Summary of Winmark Corporation
Winmark Corporation (WINA), established in 1988, is a leader in the resale industry, operating a franchise model that includes brands such as Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. The company emphasizes sustainability and small business formation, and as of 2024, it boasts a total of 1,343 franchises. Winmark’s business model is designed to generate consistent, recurring revenue with strong operating margins, making it less capital-intensive compared to traditional retail operations.
As of 2024, Winmark reported total revenues of $61.7 million for the first nine months, marking a slight decrease from $63.2 million in the same period in 2023. The company’s revenue streams include royalties from franchise operations, merchandise sales, and leasing income.
| Revenue Source | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Royalties | $54.6 million | $53.1 million |
| Franchise Fees | $1.2 million | $1.1 million |
| Leasing Income | $1.7 million | $3.9 million |
| Merchandise Sales | $2.7 million | $3.6 million |
Company's Financial Performance in Latest Reports
In the third quarter of 2024, Winmark Corporation reported revenues of $21.5 million, a decrease from $22.3 million in Q3 2023. The franchising segment contributed significantly to this revenue, generating $21.2 million compared to $21.0 million in the prior year quarter. The operating income for the franchising segment increased to $14.8 million from $14.0 million.
For the first nine months of 2024, the company’s total operating income was $40.2 million, slightly down from $40.8 million in the same period of 2023. The effective tax rate for the first nine months of 2024 was 21.8%, down from 22.3% in 2023. Net income for the same period was reported at $30.4 million, compared to $29.5 million in 2023.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $61.7 million | $63.2 million |
| Operating Income | $40.2 million | $40.8 million |
| Net Income | $30.4 million | $29.5 million |
| Effective Tax Rate | 21.8% | 22.3% |
Introduction to Winmark as an Industry Leader
Winmark Corporation is recognized as one of the leading companies in the resale industry due to its innovative franchise model that combines sustainability with strong financial performance. The company has consistently demonstrated resilience in fluctuating market conditions, maintaining a diverse portfolio of brands that cater to various consumer needs. The increase in royalty revenue by 2.8% in 2024, driven by the expansion of franchise stores, highlights Winmark's successful business strategy. The company continues to focus on enhancing its market presence and encouraging franchise growth, solidifying its position as a leader in the resale sector.
For more insights into Winmark Corporation’s operations, strategies, and performance metrics, readers are encouraged to explore further sections.
Mission Statement of Winmark Corporation (WINA)
Mission Statement Overview
Winmark Corporation (WINA) operates with a clear mission to drive sustainability and support small business formation through its unique franchising model. The company's mission statement serves as a guiding principle that shapes its long-term goals and operational strategies. This mission reflects Winmark's commitment to creating value for its franchisees while engaging in environmentally responsible practices.
Core Component 1: Commitment to Sustainability
Winmark's first core component emphasizes sustainability. The company actively promotes the resale of products through its franchises, which include brands like Plato’s Closet and Once Upon A Child. This not only fosters a circular economy but also reduces waste and environmental impact. In 2024, Winmark reported a total of 1,343 franchises, reinforcing its role in promoting sustainable practices within the retail sector.
Core Component 2: Support for Small Businesses
The second core component highlights Winmark's dedication to supporting small businesses. By providing a franchise model, Winmark empowers individuals to start their own businesses with a proven system. In the first nine months of 2024, the company saw a 2.8% increase in royalties, totaling $54.6 million, driven by an expanding franchise network. This growth indicates the effectiveness of Winmark's support mechanisms for franchisees, translating into financial success for both the company and its partners.
Core Component 3: Delivering High-Quality Products and Services
The final core component of Winmark's mission focuses on delivering high-quality products and services. The company ensures that its franchises provide value-oriented retail experiences, which include buying, selling, and trading merchandise. In 2024, merchandise sales through franchise operations totaled $2.7 million for the first nine months, reflecting a commitment to quality and customer satisfaction. This statistic underscores Winmark's ability to maintain high standards across its franchise offerings.
| Financial Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Total Revenue | $22.3 million | $21.5 million | -3.6% |
| Royalties | $19.2 million | $19.5 million | 1.6% |
| Franchise Fees | $0.3 million | $0.5 million | 66.7% |
| Leasing Income | $1.3 million | $0.3 million | -76.9% |
| Merchandise Sales | $1.0 million | $0.7 million | -30.0% |
In summary, Winmark Corporation's mission statement not only outlines its commitment to sustainability, small business support, and high-quality offerings but also reflects its operational strategies that drive financial success. The company's performance metrics reinforce its strategic focus and demonstrate the tangible impact of its mission on franchisee outcomes and overall market presence.
Vision Statement of Winmark Corporation (WINA)
Vision Statement Overview
Winmark Corporation's vision statement emphasizes its commitment to sustainability and small business formation. The company aims to create a positive impact through its franchise model, which promotes the resale of goods, thereby contributing to environmental conservation and economic growth.
Commitment to Sustainability
As of 2024, Winmark Corporation focuses on sustainability by encouraging the resale of goods, which reduces waste and promotes recycling. This aligns with their brand identity as a leader in the resale industry, operating under various franchises like Plato’s Closet and Once Upon A Child. The company had a total of 1,343 franchises operating across its brands as of September 28, 2024.
Franchise Growth and Development
Winmark's vision includes expanding its franchise network, which has shown consistent growth. The total number of franchises increased from 1,319 at the end of 2023 to 1,343 by September 28, 2024. This growth represents a net increase of 24 franchises.
| Brand | Total Franchises (as of 12/30/2023) | Franchises Opened (2024) | Franchises Closed (2024) | Total Franchises (as of 09/28/2024) |
|---|---|---|---|---|
| Plato’s Closet | 506 | 11 | (2) | 515 |
| Once Upon A Child | 416 | 11 | (2) | 425 |
| Play It Again Sports | 294 | 11 | (4) | 301 |
| Style Encore | 66 | 3 | (1) | 68 |
| Music Go Round | 37 | 0 | (3) | 34 |
| Total | 1,319 | 36 | (12) | 1,343 |
Financial Performance and Revenue Streams
In 2024, Winmark Corporation reported total revenues of $61.7 million for the first nine months, a slight decrease from $63.2 million in the same period of 2023. Royalties from franchises were a significant contributor, totaling $54.6 million, up from $53.1 million year-over-year, reflecting a 2.8% increase.
Community and Economic Impact
Winmark Corporation’s vision also includes fostering small business formation. By providing a franchise model that is not capital intensive, the company supports entrepreneurs in establishing their businesses within the resale market, thereby stimulating local economies. The company is designed to generate consistent, recurring revenue with strong operating margins.
Future Outlook and Strategic Goals
Looking forward, Winmark aims to enhance its franchise offerings and expand its market presence while maintaining a focus on sustainability. The company’s operational strategy includes leveraging its established brand reputation to attract new franchisees and increase market penetration.
Core Values of Winmark Corporation (WINA)
Commitment to Sustainability
Winmark Corporation emphasizes sustainability as one of its core values, reflecting its dedication to environmentally responsible business practices. The company operates under a resale model, which inherently promotes sustainability by encouraging the reuse and recycling of products.
For example, as of September 28, 2024, Winmark had 1,343 franchises across various brands, including Plato’s Closet and Play It Again Sports, which focus on buying and selling second-hand goods. This model not only reduces waste but also provides affordable options for consumers, aligning with the company's sustainability goals.
Integrity and Ethics
Integrity and ethics are foundational to Winmark's operations. The company maintains high standards of honesty and transparency in its dealings with franchisees and customers. Winmark's commitment to ethical practices is evident in its franchise agreements, which are designed to foster fair and equitable relationships.
In 2024, Winmark has continued to enhance its ethical standards by providing comprehensive training programs for franchisees, ensuring they adhere to the same values of integrity and customer service that define the brand. This initiative is crucial for maintaining the trust of both consumers and franchise partners.
Customer Focus
Winmark places a strong emphasis on customer satisfaction, making it a core value. The company regularly gathers feedback from customers to improve its services and product offerings. This customer-centric approach has resulted in a loyal customer base across its franchise brands.
In the first nine months of 2024, Winmark reported revenues of $61.7 million, slightly down from $63.2 million in the previous year, indicating a need to continually adapt to customer preferences and market trends . This focus on customer needs drives Winmark to innovate and enhance the shopping experience.
Community Engagement
Community engagement is another vital core value for Winmark. The company actively participates in local initiatives and encourages its franchises to contribute to their communities. This engagement not only strengthens community ties but also enhances the brand's reputation.
As part of its commitment, Winmark has supported various local charities and events through its franchises, promoting goodwill and community spirit. This engagement is reflected in the positive feedback received from franchisees and community members alike.
Innovation
Innovation is essential to Winmark's strategy, as the company continually seeks new ways to improve its business model and adapt to changing market conditions. Winmark invests in technology and training to ensure its franchisees remain competitive and efficient.
In 2024, Winmark has implemented new inventory management systems across its franchises, enhancing operational efficiency and improving the customer experience. This innovation is crucial for maintaining relevance in the retail sector, where consumer preferences can shift rapidly .
| Core Value | Description | Key Initiatives | Impact |
|---|---|---|---|
| Sustainability | Commitment to environmentally responsible practices | Resale model promoting reuse and recycling | Reduced waste, affordable consumer options |
| Integrity and Ethics | High standards of honesty and transparency | Comprehensive training for franchisees | Maintained trust with consumers and partners |
| Customer Focus | Emphasis on customer satisfaction | Feedback collection for continuous improvement | Loyal customer base, adaptive services |
| Community Engagement | Active participation in local initiatives | Support for local charities and events | Strengthened community ties and brand reputation |
| Innovation | Continuous improvement of business models | Investment in technology and training | Enhanced efficiency and customer experience |
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Resources:
- Winmark Corporation (WINA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Winmark Corporation (WINA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Winmark Corporation (WINA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.