Play It Again Sports parent, Winmark Corporation, posted a 2.4% decrease in net revenue for the first quarter to $7.0 million from $7.1 million last year. Revenues from merchandise sales were $1.3 million, down 42.3% from the $2.2 million posted during the year-ago quarter. Franchise fees were up 13.2% to $215,000.
Gross margin at 82.2% of sales was up 910 basis points from 73.1% during the same quarter last year. SG&A expenses were 62.0% of sales, up 540 basis points from 56.6% of sales last year.
Winmark was able to take the back-end efficiencies and turn the revenue dip into a 59.1% net income increase for the quarter at $1.1 million (or 18 cents per diluted share), compared to net income of $699,900 (or 11 cents per diluted share) in the first quarter of 2005.