Winmark Corporation, publicly traded on NASDAQ under the ticker WINA, experienced a notable 4.6% increase in its stock value during after-hours trading Wednesday evening. This move was triggered by the announcement of the company’s forthcoming addition to the S&P SmallCap 600 index.
Starting before the market opens on Monday, January 26, Winmark is set to take the place of Guess? Inc. (NYSE: GES) within this benchmark index. This switch coincides with the anticipated acquisition of Guess? by Authentic Brands Group LLC and the Rolling Stockholders, a transaction pending completion subject to final conditions.
Being named to a significant index such as the S&P SmallCap 600 commonly results in elevated investor awareness and boosts trading volume. This effect derives from index funds that track the S&P SmallCap 600 needing to procure shares of the newly inducted companies to mirror the index composition.
Winmark's business model centers around franchising in the resale retail domain, empowering entrepreneurs to operate retail outlets featuring gently used goods. Its franchise portfolio boasts respected brands including Plato’s Closet, Once Upon A Child, Play It Again Sports, Music Go Round, and Style Encore.
In addition to its franchising activities, Winmark operates a complementary equipment leasing segment under the name Winmark Capital. The company champions principles of the circular economy, facilitating the reintegration of millions of pre-owned items into community markets through its operational framework.
Within the S&P SmallCap 600 index, both Winmark and Guess? are categorized under the Consumer Discretionary sector.