Cramer: Plenty Of Room For Amazon Prime And Costco Members To 'Coexist'

Jim Cramer felt it appropriate to wear a Kirkland-branded tie on Friday. For those who aren't familiar, Kirkland is the private label brand of Costco Wholesale Corporation COST and the company just reported a "mighty quarter."

Before discussing Costco's earnings, he suggested investors "ignore" Costco's "hideous" chart in which shares moved below the $150 level in May to near $170 per share in August only to reverse below the $150 level yet again this month.

Cramer pointed out there are two major takeaways from Costco's earnings report.

The first issue is in regards to Costco's branded credit card shift away from American Express towards Visa. Cramer suggested American Express "left this thing in tatters" and made it "really hard for Visa and Costco."

Related Link: Visa Co-Branded Card Off To A Good Start At Costco Wholesale

Cramer said earnings results could be the first quarter that Costco lapped the "horrendous hand off" from American Express so now "things will look better" moving forward, at least on the credit card front.

Moving on, Cramer highlighted a conversation on the conference call between Costco's CFO Richard Galanti and Oliver Chen, an analyst at Cowen.

Chen asked for some commentary regarding the belief that Costco is "Amazon.com, Inc. AMZN proof."

Galanti responded that Costco's management doesn't believe for a minute that it's immune from Amazon's growth.

"He says that Amazon is winning in a lot of things and that Prime is fantastic," Cramer said of Galanti. "But at least he addressed it. This is the elephant in the room for every retailer."

Finally, Cramer suggested there is plenty of room for Amazon Prime and Costco members to "coexist."

Image: Mike Mozart, Flickr