Updated from 11:13 AM EDT.

NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report and Dollar General (DG) were tumbling in midday trading on Thursday after both discount retailers reported weak quarterly results.

Dollar General also reiterated its full-year guidance for earnings per share falling between 10% and 15%.

"I thought that was interesting that they reiterated given the fact that how really kind of subpar it was," TheStreet's Jim Cramer said of the quarter on CNBC's "Squawk on the Street" this morning.

Cramer added that the discount retailer also cited "unseasonably mild spring weather."

"What does that mean, you bought less Velveeta?" Cramer wondered. "No one else cited the unseasonably mild spring weather of the companies that I deal with...I thought that was curious. It raised eyebrows."

Dollar Tree and Dollar General posted "very disappointing" numbers, Cramer added in the above video, saying that if consumers are feeling better they tend not to shop at dollar stores.

Additionally, Cramer said that dollar discount retailers are being pressured by Walmart Stores (WMT).

Walmart CEO Doug McMillon "is upending the whole retail world. Walmart is driving some everyday low prices like they did in the old days when they put out of business a lot of companies," Cramer noted.

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The retail giant has raised wages for workers so they do not go to a competitor. The company has also made it so that consumers are "very conscious" that it has cut prices, according to Cramer.

Walmart is "livelier. They kept the employees for once," Cramer stated.

Cramer also mentioned Walmart's recently announced acquisition of e-commerce company Jet.com.

"I am sure that's going to be algorithmically a real challenge for Amazon. A real challenge," Cramer contended.

"I am very impressed with McMillon," Cramer said.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on Dollar Tree stock.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in net income, solid stock price performance and growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DLTR

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