Winmark Corp (NASDAQ: WINA)

Winmark Corporation is a nationally recognized franchisor that operates five resale retail brands focused on buying and selling used goods. The company promotes sustainability by extending the life of clothing, toys, sporting goods and musical instruments through its franchise network. Founded over three decades ago, Winmark has refined a franchise model that emphasizes value oriented merchandise and community based reuse. Its mission statement, Resale for Everyone, reflects the goal of making second hand shopping accessible to a broad consumer base.

Winmark generates revenue primarily from ongoing royalties paid by franchisees, calculated as a percentage of their gross sales, and from initial franchise fees for new store openings. Additional income comes from centralized purchasing services that supply franchisees with new inventory and from the sale of point of sale systems and training programs. In 2025, royalties and franchise fees accounted for approximately 90.5% of total consolidated revenue, highlighting the dominance of the franchising model. The company also earns modest proceeds from the resale of returned goods and from ancillary services such as advertising fund contributions, though these represent a small fraction of overall income.

The company operates through the following segments: Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. As of December 27, 2025, the franchise system comprised 1,378 stores spread across the United States and Canada.

• Plato’s Closet: This segment franchises stores that buy and sell gently used clothing and accessories aimed at teenagers and young adults, offering sellers immediate cash or store credit and buyers prices well below new retail.

• Once Upon A Child: This segment franchises stores that buy and sell used children’s clothing, toys, furniture and equipment, with a smaller selection of new items for infants through age twelve, and enables parents to trade outgrown goods for credit or cash.

• Play It Again Sports: This segment franchises stores that buy, sell and trade used and new sporting goods, equipment and accessories for activities such as team sports, fitness, skiing, snowboarding and golf, while also providing repair services and seasonal product adjustments.

• Style Encore: This segment franchises stores that buy and sell used women’s apparel, shoes and accessories, and to a lesser extent men’s items, focusing on fashion forward pieces at discounted prices.

• Music Go Round: This segment franchises stores that buy, sell and trade used musical instruments, speakers, amplifiers and related electronics, with a limited selection of new products, and supports local musicians through trade in options and repair services.

Winmark holds a strong position within the resale retail industry as a leading franchisor of second hand stores. It competes with major retailers such as Walmart, Target, Dick’s Sporting Goods and Guitar Center, as well as online platforms like eBay, Poshmark, thredUP and Facebook Marketplace. The company’s differentiated brand portfolio, comprehensive training and ongoing operational support give it a competitive advantage in attracting and retaining franchisees. Additionally, its focus on sustainability appeals to environmentally conscious consumers and helps differentiate its stores from traditional second hand shops.

Winmark’s customers consist of people who bring in used clothing, toys, sports equipment or musical instruments to sell for cash or store credit. The same individuals and others purchase affordable second hand goods from the franchise stores, ranging from teenagers seeking trendy apparel to parents looking for children’s items and athletes searching for sports gear. The franchise system serves both urban and suburban communities across the United States and Canada, with a notable presence in college towns and family oriented suburbs.