NEW YORK (TheStreet) -- After a disastrous earnings report from Bed Bath & Beyond (BBBY), TheStreet's Jim Cramer compared the company to another retailer: Macy's (M), a holding in his charitable portfolio, Action Alerts PLUS.
Macy's has a solid Internet strategy that actually helped boost its earnings, and the company recently guided higher for fiscal 2015, Cramer said. Bed Bath, by comparison, has "no Internet strategy to speak of," and that's why the company relies on coupons to drive sales.
Mall traffic was down this holiday season, crippling many retailers such as Bed Bath while the focus on technology drove Internet sales for others, including Macy's, Cramer said.
Cramer's bottom line was this: The BBBY conference call was somewhat "sketchy" and did not shed light on identifying the real problems at the company. The stock has become so inconsistent that he and Stephanie Link, AAP co-manager, have "no faith" in it.That's a shame, he concluded, because BBBY has a such a great business concept. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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