Mad Money Spotlight: Cramer Slogs Gildan

But Gildan wasn't always so crummy. Between 2003 and 2006 Gildan was the perfect growth stock, Cramer said. The business model worked: it was a low-cost maker of promotional t-shirts and fleeces, beating out the competition by offering more attractive prices.

The blank t-shirt business, however, ran out of room to grow. And now with its core customers cutting back, these personalized t-shirts are simply unnecessary.

In May, Gildan posted an 83% plunge in second-quarter earnings, missing analysts' expectations.

Hanesbrands didn't have a much stronger first quarter, losing $19.3 million. But Hanes predicts sales could make a turn for the better as retailers resume more robust ordering. This hope doesn't seem to exist at Gildan.

Cramer said even if companies start buying tees with logos again from Gildan, the growth story is played out. Investors should take the opportunity to sell the company into strength, as shares of Gildan closed up 3% to $17.28 on Thursday.

>To order reprints of this article, click here: Reprints