"I think you need to be very careful" with the stock, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment.
Anthropologie and Free People continue to do well for the company, while its flagship store, Urban Outfitters, continues to weigh the retailer down, he said.
He added that inventory at Urban Outfitters continues to grow, and management has indicated that the turnaround is taking longer than investors had hoped.
Staples (SPLS) has also struggled. Cramer said, "It was another terrible quarter."
The company is feeling the pressure from Amazon (AMZN) because people simply aren't going to office supply stores anymore, he reasoned.
Cramer concluded that investors who want to buy into the retail space should do so selectively, with companies that have reported solid results. Some names include Costco Wholesale (COST) and Nordstrom (JWN), as well as drug store retailers such as Rite-Aid (RAD), Walgreen (WAG) and CVS Caremark (CVS).
-- Written by Bret Kenwell in Petoskey, Mich.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.