Winmark Corp. the parent of Play It Again Sports, announced net income for the quarter ended March 31, 2018 of $6.96 million, or $1.69 a share, compared to net income of $5.6 million, or $1.25, in the first quarter of 2017.
Brett D. Heffes, chief executive officer, stated, “The first quarter of the year was highlighted by continued positive trends in our franchising business. Our improved operating results combined with a decrease in tax expense due to the reduction in corporate tax rates yielded exceptionally strong growth in earnings per share.”
According to the company’s 10-K filing, Play It Again Sports had sales of $223 million in 2017, down from $228 million in 2016. The chain generated total royalties and franchise fees of $9.3 million last year.
Founded in 1988, Play It Again Sports stores buy, sell, trade and consign used and new sporting goods, equipment and accessories for a variety of athletic activities, including team sports (baseball/softball, hockey, football, lacrosse, soccer), fitness, ski/snowboard and golf, among others. It closed the year with 476 stores, opening 14 locations and closing six. Twenty-six locations were up for renewal at the year’s close.
At March 31, Winmark had 1,223 franchises in operation under the brands Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. An additional 59 retail franchises have been awarded but are not open. In addition, on March 31, 2018, the company had a lease portfolio of $41.9 million.