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Motley Fool Hidden Gems Investing

Why Resale is Forever

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 27 April 2024

⏱️ 32 minutes

🧾️ Download transcript

Summary

Winmark doesn’t make a lot of noise. The business speaks for itself. Winmark, a resale is a franchisor that owns concepts including Plato’s Closet, Play It Again Sports, and Once Upon a Child. The company has tripled the return of the S&P 500 since its IPO, and delivered an annualized return of 18% over the past five years. So, investors may want to pay attention to it. Motley Fool Canada’s Jim Gillies caught up with Winmark CEO, Brett Heffes for a conversation about: - The growth of Play It Again Sports and a slowdown at Music Go Round. - How Heffes thinks about capital allocation. - Building an everlasting business. Company discussed: WINA Host: Jim Gillies Guest: Brett Heffes Producer: Ricky Mulvey Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Windmark and our franchisees we are on the verge of something like truly meaningful together and we want to formalize this

0:06.7

Like not an illegal document but in a pact

0:09.7

Because what happens Jim is our most successful franchisees they understand that their business is a legacy asset in the community

0:17.4

they manage the business for themselves the community but more importantly the next generation.

0:26.1

I'm Mary Long and that's Brett Heathas, CEO of Windmark, a franchiser of resale concepts,

0:31.3

including Plato's closet, play it against sports, and once upon a child.

0:36.2

This quiet company in Minneapolis, Minnesota doesn't do earnings calls, but it smashed the market

0:41.7

since its IPO and over the last five years.

0:44.4

Windmark's efficiency can be found in this stat.

0:47.2

It's made more revenue per employee over the past year than Salesforce, Proctorer and Gamble, or Tesla.

0:54.0

So that's why stock investors may want to pay attention to it.

0:58.0

Motley Fool Canada's Jim Gillies caught up with Heffiz for a conversation about how

1:02.0

Windmark is building an everlasting company.

1:08.7

So I kind of wanted to talk a little bit about you've just reported first quarter earnings this week you've raised the

1:15.8

dividend again which has kind of become an annual thing for you I believe it's now

1:21.3

up to 90 cents a quarter for you

1:25.0

I believe it's now up to 90 cents a quarter. I would like, if you will, indulge me.

1:27.0

I'd like to read for listeners the entirety of your commentary

1:31.0

in this press release announcing Q1 earnings.

1:34.8

Performance during the first quarter was adequate, commented Brett D. Heffes, chair and

1:40.9

Chief Executive Officer. What's the phrase damning with faint Heffis chair and chief executive officer.

1:42.8

What's the phrase damning with faint praise?

...

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