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Initially investors in Williams-Sonoma (WSM) reacted poorly to the kitchenware and home furnishing company's in-line earnings per share results and miss on revenue expectations. But the shares, which fell after the earnings report late Wednesday, are up 2.2% Thursday.

That's why it's important to listen to the conference calls, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.

The company's West Elm brand posted comp-store sales results of 15.8%, which appears to be easing concerns of its other brands, Cramer said. Williams-Sonoma has also found success in its online business. "They've done a fantastic job," he said, adding that back-to-school and Halloween sales are strong now, too.

Investors expected bad results, but the company didn't do as poorly as people thought. That's why its stock is on the move, Cramer explained.

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Cramer said he still likes Lululemon Athletica (LULU) , which reports earnings next week. Analysts at Oppenheimer said this could be a breakout quarter, he added.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.