Better Buy: Foot Locker vs. Dollar General Stock
Investors have recently backed away from some formerly high-flying specialty retailer stocks. There is less enthusiasm for companies like Dollar General (NYSE: DG) and Foot Locker (NYSE: FL) today, mainly because their sales growth rates are slowing. Shrinking profit margins are putting pressure on these businesses, too.
Yet while those obstacles have helped both stocks become cheaper by about 30% so far in 2023, one seems like the clearer choice for investors seeking a rebound story. Let's take a closer look.
Both companies missed management's short-term growth targets this past quarter, but Dollar General reported better sales metrics. Comparable-store sales rose 2% and overall revenue improved 7% thanks to the addition of new stores in the selling footprint. Executives said in early June that these results reflected a more challenging selling environment characterized by lower customer traffic and more constrained spending patterns.
Source Fool.com
