Shares of shoe retailer Foot Locker (NYSE: FL) took a bath following its second quarter 2019 results. The company looked to have cracked the code for brick-and-mortar store success, but it reported negative foot traffic at its stores in all geographies -- here in the states and abroad.
Yet it wasn't all bad. Management said business picked up as spring gave way to summer, and foreign currency exchange rates were the primary reason revenue went backward instead of forward. With the top team at the shoe chain reiterating its positive guidance for the year, this looks like a pretty cheap dividend stock.
Sporting goods and apparel stores have been under assault. According to data from the U.S. Census Bureau, both categories have struggled the past few years under the weight of online-only retailers -- not to mention online direct-to-consumer efforts from the likes of Nike, Adidas, and Under Armour. Through the end of July, sporting goods and apparel store sales are down 5.2% and 0.5%, respectively, even as overall consumer spending continues to rise over 3% year over year.