NEW YORK (TheStreet) -- Some retailers simply execute better than others, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. And that's evident in Gap's (GPS) disappointing earnings results.
On Friday, Gap shares fell slightly more than 5% after it missed on third quarter revenue and earnings per share estimates, and provided weaker-than-expected full-year guidance. Gap has a market cap of $17.5 billion.
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"They just don't have it," Cramer said on CNBC's "Cramer's Mad Dash" segment. Gap doesn't have the right assortment and merchandise, and is failing to execute at a high enough level.
While video game companies like Take-Two Interactive Software (TTWO) and Activision Blizzard (ATVI) are doing well, as is home entertainment retailer Best Buy (BBY) , GameStop is struggling due to video games moving away from a physical disk and into a downloadable form.
"There's a big bull market in footwear," he said, as Foot Locker beat on revenue and EPS estimates. Cramer also pointed out that Nike (NKE) boosted its dividend by over 16% on Thursday, after topping analysts' estimates in the most recent quarter.
-- Written by Bret Kenwell
TheStreet Ratings team rates GAMESTOP CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAMESTOP CORP (GME) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: GME Ratings Report