Pass on Bed, Bath, and Beyond, Says Cramer

NEW YORK (TheStreet) -- Lindsey Bell interviews Jim Cramer regarding Bed, Bath and Beyond's disappointing numbers. A full transcript appears below:

Lindsey Bell:
Bed, Bath, and Beyond...they missed earnings estimates last night. Now, earlier this week, you were excited about the busyness you saw in one of the stores.

Jim Cramer:
Yeah. You know, I guess that's anecdotal, right.

Lindsey Bell:
Yeah.

Jim Cramer:
What I've been saying about Bed, Bath was it had a remarkable recovery from its previous quarter...the stock did.

Lindsey Bell:
Just the stock.

Jim Cramer:
But there was no sign the company did.

Lindsey Bell:
Right.

Jim Cramer:
So stock goes from 73 to 59 then comes back to 70. That is too much of a move and now you're seeing the correction to the correction. This is a company that's going from five percent comp to three and a half...not enough comp acceleration numbers, like Limited...recommended this morning. I cannot be in a decelerating comp situation. It's never paid off for me. So I like the store but it's not enough.

Lindsey Bell:
They also had to pay for that comp with coupons.

Jim Cramer:
I know.

Lindsey Bell:
Are they going to be able to get away from coupons?

Jim Cramer:
And they do a lot of couponing. I mean, they are a big coupon company. JCPenny tried to get away. I coupon when I'm at Bed, Bath and look...the shelf life of this company may have run out for now. I don't think it's been Amazon but I just think it's got...you know Target's come on strong. Walmart's come on strong. They've been making a series of acquisitions to try to make it so that things are better and it's like, okay, well, you know, I don't want it right now and that's how I feel. I don't want it.

Lindsey Bell:
You don't want it. But what's the lag here? I mean, Home Depot's doing great. We're seeing numbers improving in the housing market. Shouldn't Bed, Bath, and Beyond be improving?

Jim Cramer:
Yeah. I agree it should be. I love their stores but the numbers are the numbers, Lindsey, and you know, Home Depot's got a nice turn - I own that for ActionAlertsPlus.com. I thought that maybe we should buy Bed, Bath.

Lindsey Bell:
Yeah.

Jim Cramer:
I talked about it with Stephanie Link, Research Director, but the more I think, the more I just say, there's others...there's better ones. Sometimes it's not a severe judgment.

Lindsey Bell:
Okay.

Jim Cramer:
It's just a judgment.

Lindsey Bell:
It has something to prove now.

Jim Cramer:
Yeah. Good point.