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Jim Cramer on Lululemon, RH, GameStop, and Signet

Jim Cramer discusses Lululemon, RH and GameStop earnings as well as his concern around the market volatility.

Wall Street is still concerned about the Delta variant. Investors have taken on a more cautious stance on risk amid signs of a pullback in the recovery of the pandemic. 

Jim Cramer's Warning on Volatility 

Cramer's got a warning to investors around the market. He detailed his thoughts in a Real Money column late Wednesday, Sept. 8.  

"I don't want to waste your time. The reasons I want you to be ready for volatility -- a Wall Street code word for a selloff -- are myriad and I want to tick them down right now," Cramer wrote in his Real Money column. "First, I am a huge believer that the stock market is driven not just by the Fed, although I know most in the media think the Fed is all that matters, but about how companies are doing. Earnings, sales, the pedestrian day-to-day stuff is what I care about, because it's what drives the vast majority of individual moves."

"The numbers, the reports, have been phenomenal for ages. We have been spoiled by earnings surprises seemingly forever, positive earnings surprises," he continued. 

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How Is the Jewelry Industry Faring?

Cramer, on Mad Money last night, "spoke with Gina Drosos, CEO of Signet Jewelers (SIG) - Get Signet Jewelers Limited Report, the retailer with shares that have risen 318% over the past year, despite falling 4% Wednesday after the company reported stellar earnings."

"Drosos said the team at Signet really delivered and it's clear that their new strategies are working. Despite the pandemic, customers are loving Signet's initiatives like virtual jewelry consultants, she said, and there's more momentum and optimism than ever," TheStreet's Scott Rutt wrote. 

Lululemon's Earnings

For the quarter ending in July, the company earned $1.65 pre-share as revenues surged 61% from last year's pandemic trough to around $1.45 billion.

It also said that it sees full-year earnings in the region of $7.38 to $7.48, on sales that could reach $6.26 billion, even as supply chain disruptions add stress to the group's logistics over the second half of the year.

"Lululemon  (LULU) - Get Lululemon Athletica Inc (LULU) Report remains in the early innings of our growth story and I continue to be inspired and excited with the momentum we’re seeing across the business," CEO Calvin McDonald told investors on a conference call late Wednesday. "Results of this caliber enable us to now develop our next five-year growth plan and we’ll come back to you next year with an updated view of what the future can hold."

"We are monitoring this closely and leaning into the agility of our supply chain. The strength of our planning and allocations team and the powerful partnerships with our vendors to help mitigate the risks where we can," he added. "Our business was particularly strong in quarter two and our guidance calls for momentum to continue in the back half of the year. But I think it’s fair to say that our business would have been even stronger without these challenges facing the industry."