Winmark Corporation (WINA) has reported  an 18.71 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $5.42 million, or $1.22 a share in the quarter, compared with $4.56 million, or $1.06 a share for the same period last year.

Revenue during the quarter grew 8.92 percent to $17.62 million from $16.18 million in the previous year period. Gross margin for the quarter expanded 17 basis points over the previous year period to 95.95 percent. Total expenses were 48.16 percent of quarterly revenues, down from 50.32 percent for the same period last year. This has led to an improvement of 215 basis points in operating margin to 51.84 percent.

Operating income for the quarter was $9.14 million, compared with $8.04 million in the previous year period.

Earnings growth during the first quarter was driven by an increase in customer activity within the Company's lease portfolio and moderate royalty growth in the franchise business. Brett D. Heffes, chief executive officer, stated "Earlier this year, we announced our initiative to partner with emerging franchisors and entrepreneurs who can benefit from Winmark's experience in establishing, growing and managing successful businesses. We have made meaningful progress on this front, and believe that Winmark Franchise Partners will provide us with opportunities for additional growth."