Updated from 10:38 AM EDT.

NEW YORK (TheStreet) -- Shares of Macy's (M) - Get Macy's Inc Report were spiking 17.44% to $39.97 in late-morning trading on Thursday after the retailer posted higher-than-expected earnings and revenue for the 2016 second quarter.

"I like the dynamic nature of some of these retailers" TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

"I thought (Macy's CEO) Terry Lundgren just said 'listen we're not going to sit there and just take it. We're going to take tough action, even if it means closing stores that make us money,'" Cramer added.

Macy's said this morning it would close 100 department stores to focus on its top-performing locations.

This tough action is what Cramer noted he has been looking for from some of these "American merchants who seem to be just kind of taking it on the chin."

"I'm not saying things have gotten dramatically better, but I am saying they're doing some self-help," Cramer said of Macy's.

"These stores are making money, so what they're saying is we're going for profitability," Cramer added, referring to the store closures.

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Macy's is a trading buy, Cramer said in the above video.

Shares of fellow department store Kohl's (KSS) are jumping 12.2% to $42.68 this morning after the company beat earnings expectations.

Cramer mentioned that Kohl's is encouraged by the performance of juniors and young men's apparel.

Nordstrom (JWN) is scheduled to post its second quarter earnings after today's closing bell, while J.C. Penney (JCP) is set to report its quarterly results before Friday's market open.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Macy's stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity.

But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

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: M

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