HIBB - Winmark: Shares Have Gotten Too Pricey

2024-05-10 04:58:53 ET

Summary

• Winmark Corporation franchises out multiple retail concepts, including Plato's Closet, but the stock is currently very expensive.
• The company has achieved steady growth in recent years, but its fundamental growth has been slow.
• The stock is trading at high multiples and is too expensive to consider buying at this point in time.

With a few exceptions, I am not a big fan of the retail space. I find it to be highly competitive and low margin. There are some interesting companies in this market, one example being Winmark Corporation ( WINA ). Unlike a traditional retailer, it actually franchises out multiple retail concepts, the most popular of which is known as Plato's Closet. Although the company has achieved steady growth in recent years and I suspect that trend will likely continue, the stock is very expensive at this point in time....

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