Overview

• U.S. resale franchisor's Q2 revenue rose yr/yr

• Q2 net income and diluted EPS declined slightly from prior year

• Company cites investments in technology and Plato’s Closet Ad Fund launch as factors

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods in the press release

Result Drivers

• TECHNOLOGY AND INNOVATION SPENDING - Co said increased investment in technology and innovation initiatives affected results

• PLATO’S CLOSET AD FUND - Co cited spending ahead of the Plato’s Closet North American Ad Fund launch as a factor in Q2 results

• HIGHER OPERATING EXPENSES - Selling, general and administrative expenses increased yr/yr, reflecting investment activity

Company press release: ID:nBw4Kq7C8a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue		$21.96 mln
Q2 EPS		$2.81

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Winmark Corp is $545.00, about 44.7% above its July 14 closing price of $376.66

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 35 three months ago

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