Market Overview

Cramer: Retailers Just Proved They're Far From Dead

Share:
Cramer: Retailers Just Proved They're Far From Dead

Retailers are making a strong statement in their earnings report that they are far from dead, so says CNBC's Jim Cramer.

Many of the companies who reported their earnings in the past few days made it clear they're putting up strong defenses against Amazon.com, Inc. (NASDAQ: AMZN), Cramer said during his daily "The Mad Dash" segment. For instance, Gap Inc (NYSE: GPS) reported a 3 percent comparable store sales growth and said its Athletica segment is "on fire."

"When you get this number what you have to say to yourself 'is retail really dead?' Cramer said. "[Gap] is a mall based retailer to a large extent and they are putting up good numbers."

Some companies are "more dead than others," such as Williams-Sonoma, Inc. (NYSE: WSM), but the list of strong performers outnumber Williams-Sonoma and include Foot Locker, Inc. (NYSE: FL), Abercrombie & Fitch Co. (NYSE: ANF), and Ross Stores, Inc. (NASDAQ: ROST).

"Remember what Elon Musk said about Mars?" Cramer said. "I want to die on Mars but I don't want to die on impact. That's how I feel about the mall."

Finally, there's no denying the impact Amazon has shown on the retail sector, Cramer added. But many retail stocks have been brought down to a valuation which implies Amazon will "destroy everything" but the "death star cannot destroy everyone," including Gap who is putting up a "force field."

Related Links:

The Gap Is Accelerating Store Closures; Here's Why Some See That As A Positive

Analyst: Williams-Sonoma's Initiatives 'Aren't Paying Off Enough'

Posted-In: Athletica Elon Musk Online Commerce retail earnings retailersEarnings News Media Best of Benzinga

 

Related Articles (AMZN + ANF)

View Comments and Join the Discussion!

Low Market Volatility? No Problem

There Could Be 18% Upside Left In Nvidia, Analyst Says