Better Buy: Nike vs. Stitch Fix
Retail stocks have underperformed the broader market during the COVID-19 outbreak. Not surprisingly, April data from the U.S. Department of Commerce showed a colossal drop in sales at clothing stores of nearly 90% year over year. However, non-store sales were up 21% year over year, reflecting the advantage that e-commerce has in this environment.
Nike (NYSE: NKE) and Stitch Fix (NASDAQ: SFIX) are two retail stocks that should survive the shutdown and emerge stronger on the other side. Both companies have plenty of cash to cover near-term expenses, and both have a growing online presence. We'll compare these companies' competitive position to determine which stock investors should buy today.
Image source: Nike.https://news.nike.com/news/nike-media-resources
Source Fool.com
