Shares of Costco Wholesale (COST) - Get Report are up 4% Friday after the company beat on earnings per share estimates but missed on revenue expectations. Excluding gas prices and the effects of foreign exchange, comparable-store sales results rose 3%.
This was a good but not great quarter, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. Costco is an AAP holding.
The company's transition from using American Express (AXP) - Get Report cards to Visa (V) - Get Report cards did not go smoothly, Cramer noted. American Express made a "horrendous handoff" and it has resulted in tough outcomes in the previous quarters. However, Costco seems to have pulled through and the results are much better now, he added.
Costco CFO Richard Galanti addressed Amazon and its effect on retail. Cramer quoted him as saying, "We don't buy that for a minute" as to whether Costco is insulated from the e-commerce juggernaut. Cramer said the CFO explained why Amazon is great and why Costco is, too, showing great confidence.
Amazon has hurt a lot of retailers, Cramer said, but it's not going to destroy Costco. They can co-exist.
At the time of publication, Cramer's Action Alerts PLUS had positions in COST and V.