JWM, M, KSS, JCP: Jim Cramer's Views

Jim Cramer shares his views on Nordstrom's quarter and apparel woes. Nordstrom, Macy's, Kohl's and J.C. Penney are among the stocks discussed here.
By Jim Cramer ,

NEW YORK (Real Money) -- Jim Cramer shares his views every day on RealMoney.Click here for a real-time look at his insights and musings.

Asleep in Seattle: Nordstrom's Clueless Quarter

Posted at 9:06 a.m. EDT on Friday, Nov. 13, 2015

The Nordstrom (JWN) - Get Report quarter was devastating. Clueless. Just disheartening.

It was like listening to the executives of a personal computer company telling you not to worry about cellphones. Or like listening to dinosaurs telling you not to worry about the ice age.

I write those damning things because Nordstrom didn't even seem fazed by what just happened to them. Management simply accepted the fact that there wasn't a lot of traffic at the mall so they didn't do well. They acted like if they somehow put better merchandise in the stores it would solve the problem. They made a point that they got inventories under control so don't be too worried. They opined that they are merchants not economists and that it was all about fashion.

It's not, though. Not at all. It's about relevance. It's about who is going to the mall. Or more important, who isn't. At one point Best Buy (BBY) - Get Report was just a showroom for Amazon  (AMZN) - Get Report. Now the whole mall is a showroom for Amazon and that includes Nordstrom.

Now it is true that not all of Nordstrom is doing badly. The places where they offer the most compelling bargains did well, their off price and their web offerings. But basic Nordstrom? Wow, terrible.

What was really odd was that the downturn had nothing to do with the weather. They didn't mention it once. They simply just talked traffic. They even said that for what it was worth, coats did well!

Again, like with Macy's (M) - Get Report, I think this was the crossover quarter. This is the quarter where the cellphone replaced the mall. We are now living in a digital, mobile first world. Nordstrom needs to hire some incredibly smart, young people and populate them throughout the organization and get to the bottom of what the heck can be spared and what must be junked right now before it is too late. The idea of "build it they will come" is gone, even for a merchant as fine as Nordstrom.

The most devastating line on the call? When Jamie Nordstrom says "we're in the fashion business and there is an ebb and flow" to it.

No, you have to be in the technology business that includes a fashion component because there is no more flow, just ebb.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.

It's Been a Hard Day's Night for 2 Big Stores

Posted at 5:52 p.m. EDT on Thursday, Nov. 12, 2015

What a nasty night after a ridiculously hard day. All day today, I heard that maybe I am too "pro" Terry Lundgren at Macy's (M) - Get Report and that he has lost his touch. His company is challenged, of that there is no doubt.

But I think the incredible egg that Nordstrom (JWN) - Get Report laid this evening may cause people to wonder who has lost the edge, especially when the miss from Nordstrom is one of those quantum affairs that the company should have told you about in advance ... unless they were playing the hope game, which, of course, is rarely rewarded.

My theme is overpunishment these days, and I think that if someone were to wait a few days after the momentum people clear out, Nordstrom might be a buy, but I am totally cognizant that without cold weather the mall's going nowhere, and Nordstrom is in the mall.

It's difficult to really put your finger on what Nordstrom and Macy's did wrong because they are, alas, two very different kinds of stores. Macy's thrives on promotion. Nordstrom is all about tone and service and touch. Macy's has spent a lot of money on its online offerings, but Nordstrom exceeds anyone in spend. Nordstrom's got the hottest off-price biz of the major department stores.

So you can only conclude that there's something very wrong in the group and that while Kohl's (KSS) - Get Report didn't disappoint and J.C. Penney (JCP) - Get Report put up good comps, lower gasoline and steadier employment are not leading to more clothes shopping and we are dramatically overstored when it comes to apparel.

One thing is for certain, you would think the short-term sellers are out of these retailers after the pummeling they've gone through. But that's certainly not the case. I had kind of figured that pretty much any number within the ballpark could trigger a rally, but this number wasn't even in the surrounding parking lot.

Of course, tonight is jarring not just because of Nordstrom. Cisco (CSCO) - Get Report had been holding up well, but that's unraveling on some weaker guidance. Action Alerts PLUS has a small position in the stock and we want to get bigger, but I think the operative term here about Cisco and so many other stocks is, "We are staying patient and will buy when it can make a difference."

It's amazing that one week ago we got the kind of employment news that everyone has dreamed of for eight years -- everyone, that is, except those who own stocks.

The positive real-life scenario is playing as negatively as possible in the stock scenario. Somehow I don't think it's done rolling over. Between Cisco and Nordstrom, there is way too much to extrapolate from and none of it will be good.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long CSCO.

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