The earnings alone weren't that negative, but the conference call was "dreadful," TheStreet's Jim Cramer pointed out on CNBC's Squawk on the Street this morning.
Most concerning to Cramer were co-president Blake Nordstrom's comments on the call.
"(F)rom an earnings perspective, our expenses have grown faster than sales to support our multichannel growth," Blake Nordstrom said.
In other words, Nordstrom is spending a lot of money to try to compete with e-commerce giant Amazon.com (AMZN) and it's not sure that it's working, Cramer explained.
Nordstrom has spent billions to improve its online business and Amazon.com continues to eat everyone's lunch, dinner and probably all-day breakfast soon, he continued.
Amazon.com "really wrecked the model," Cramer said.
Investors should stay away from not just Nordstrom, but apparel and department stores in general, Cramer contended.
Before the market open, outdoor apparel and sportswear company VF Corp. (VFC) similarly reported a 2015 fourth-quarter earnings and revenue miss.
"People are saying, if it's in the mall, it ain't happening," Cramer noted.
He had planned to go shopping himself this weekend, but said he's now too depressed to visit stores and will shop right from his tablet instead.
Separately, TheStreet Ratings team rates Nordstrom stock as a "hold" with a grade of C+.
Nordstrom's strengths such as its revenue growth, notable return on equity and good cash flow from operations are countered by weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: JWN
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 article's author.