Winmark Corporation, parent company to the Play It Again sports consignment chain, posted strong net revenue gains for the third quarter, but saw increases in leasing and interest expenses hold any advance on the bottom line in check.

Net revenues increased 15.1% to $7.2 million for the third quarter from $6.3 million reported during the same quarter last year. Royalties and leasing fees accounted for much of the growth, up 13.5% to $4.8 million and 338% to $523,100, respectively, while sales of merchandise revenues held relatively flat at $1.5 million.

Gross margins increased 90 basis points to 19.1% of sales with a 10 basis point rise in SG&A expenses to 58.1% of sales hampering that slightly. The real story though, was an increase in leasing expenses to $84,500 from $600 last year and an interest expense of $307,900 that did not occur in last year’s quarter, slowing down any possible bottom line growth. Net income for the third quarter was $838,200, or 14 cents per share diluted, down 9.5% from $926,100, or 14 cents per share diluted, in the third quarter of 2005.