Winmark (NASDAQ:WINA) Posts Earnings Results, Misses Expectations By $0.20 EPS

Key Points

• Earnings miss: Winmark reported EPS of $2.50 versus the $2.70 consensus (a $0.20 miss) and revenue of $20.85M vs. $21.09M expected, while showing a negative return on equity of 102.34% and a net margin of 48.40%.
• Stock reaction and dividend: Shares fell about 1.7% to $410.10 on Wednesday with ~47,699 shares traded (below the ~90,260 average), and the company paid a $0.96 quarterly dividend (annualized $3.84, yield 0.9%, DPR ~33.95%).
• Analyst/ownership snapshot: Weiss Ratings downgraded Winmark from Buy to Hold; institutional investors own 73.32% of the stock, which has a market cap of $1.47B and a P/E of 36.47.

Winmark (NASDAQ:WINA - Get Free Report) posted its quarterly earnings results on Wednesday. The specialty retailer reported $2.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.70 by ($0.20), FiscalAI reports. Winmark had a negative return on equity of 102.34% and a net margin of 48.40%.The firm had revenue of $20.85 million for the quarter, compared to the consensus estimate of $21.09 million.

Winmark Stock Down 1.7%

Winmark stock traded down $6.90 during mid-day trading on Wednesday, hitting $410.10. 47,699 shares of the stock were exchanged, compared to its average volume of 90,260. Winmark has a 12 month low of $323.60 and a 12 month high of $527.37. The firm's fifty day simple moving average is $439.98 and its two-hundred day simple moving average is $434.87. The stock has a market capitalization of $1.47 billion, a price-to-earnings ratio of 36.47 and a beta of 0.69.

Winmark Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Wednesday, February 11th were issued a dividend of $0.96 per share. The ex-dividend date was Wednesday, February 11th. This represents a $3.84 annualized dividend and a yield of 0.9%. Winmark's dividend payout ratio (DPR) is presently 33.95%.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded shares of Winmark from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 30th. One research analyst has rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of "Hold".

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WINA. Tower Research Capital LLC TRC increased its stake in shares of Winmark by 19.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 213 shares of the specialty retailer's stock valued at $80,000 after acquiring an additional 34 shares in the last quarter. Smartleaf Asset Management LLC increased its stake in shares of Winmark by 48.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 355 shares of the specialty retailer's stock valued at $133,000 after acquiring an additional 116 shares in the last quarter. Gabelli Funds LLC bought a new stake in shares of Winmark in the 3rd quarter valued at $224,000. Mission Creek Capital Partners Inc. bought a new stake in shares of Winmark in the 4th quarter valued at $231,000. Finally, DRW Securities LLC acquired a new stake in Winmark in the 4th quarter valued at $234,000. Institutional investors own 73.32% of the company's stock.

Winmark Company Profile

Winmark Corporation NASDAQ: WINA is a franchisor of retail resale stores, specializing in the resale of apparel, sporting goods, children's and maternity clothing, toys, and entertainment media. Through its portfolio of well-known brands—such as Plato's Closet, Once Upon a Child, Play It Again Sports, and Style Encore—Winmark provides aspiring entrepreneurs the opportunity to own and operate neighborhood resale businesses. The company supports its franchisees with site selection, store design, training programs, and ongoing marketing assistance, emphasizing a turnkey approach to retail entrepreneurship.

Each of Winmark's franchised brands targets a distinct consumer segment.

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