Over the past five years, (NYSE: WMT) shares have climbed 70%, easily beating the 48% gain of Home Depot (NYSE: HD). Perhaps more noteworthy is that the former is near its all-time highs, while the latter is currently 25% below its peak price from December 2021. There's clearly a divergence happening with each company's performance lately. 

From an investment perspective, there are some important details to be aware of before deciding which of these top retail stocks is the better buy. Here's what investors need to know. 

After experiencing a surge in demand during the worst days of the pandemic, Home Depot's business is seeing a notable slowdown. The leadership team points to weaker consumer spending, and a shift away from goods to services, that has resulted in revenue declining 2% in the recently completed second quarter, ended July 30. And management believes sales will drop 3.5% (at the midpoint) for the full year. 

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Source Fool.com