Last week, retail earnings were in focus with disappointing results from Macy's (M) , J.C. Penney (JCP) , Nordstrom (JWN) and Kohl's (KSS) . Macy's posted a 5.2% fall in same-store sales year-over-year, J.C. Penney reported a narrower-than-expected quarterly loss, but revenue missed estimates. Nordstrom topped earnings estimates on both the top and bottom lines, but same-store sales declined. Kohl's posted a rise in year-over-year quarterly profit but same-store sales dropped.
The bloodbath in retail comes as competition from online retail behemoth Amazon (AMZN) continues to ramp up.
TheStreet breaks down 10 things we learned from this week's shows with Jim Cramer.
1. J.C. Penney vs. Amazon
J.C. Penney's home furnishings merchandise could be hurt by Amazon's push into the furniture space, according to Cramer.
"When you see a Penney, you say to yourself, why does it need to exist?" Cramer pondered, adding that the Sephora kiosks are a positive part of the J.C. Penney picture.
2. Nordstrom vs. Amazon
Cramer said Nordstrom (JWN) doesn't know its customer as well as Amazon does and that contributed to Nordstrom's lackluster quarterly results.
"Right now Nordstrom is doing not that horrible, but their stock is reflecting that it will do worse," Cramer said. Nordstrom shares are down 13% since the start of the year.
3. Macy's Is Very Challenged
"Macy's is very challenged," Cramer said. "The stores look terrible." Cramer said the stock may be bottoming, but it's unclear how much upside there is.
As for Kohl's, Cramer said they have a very good business with Under Armour (UA) and "that's helping them."
READ MORE: Our 'Trading Strategies' Panel's Top Picks
4. Dick's Sporting Goods Is Well Managed
Cramer said Dick's Sporting Goods (DKS) is a "very well run company." But accounting issues hit shares of the stock on Friday.
"They had a computational error that overstated their Ebitda by $23 million," he said.
5. GE's "Very Powerful" Downgrade by Goldman Sachs
Cramer said General Electric's (GE) downgrade by Deutsche Bank was "very powerful," and it's all about cash flow.
"[GE] did not have good cash flow," Cramer said. "If the cash flow bounces back, then you shouldn't worry about GE."
GE is a holding of Action Alerts PLUS.
6. Wells Fargo Needs 18 Months to Recover From Disaster
With Chipotle, it was the E. coli outbreak, and Wells Fargo suffered from its fake bank account scandal.
Cramer said Action Alerts PLUS is staying long on Wells Fargo as the bank benefits from Federal Reserve interest rate hikes.
7. Apple's Investment in Corning
8. Apple's $800B Market Cap Is About Services Revenue
Last week, Apple's market cap eclipsed $800 billion--a feat no U.S. company has ever completed.
With that, Cramer is bullish on Apple's services revenue.
"People have dramatically underestimated how big the services revenue is going to be," Cramer said.
9. Snap's Evan Spiegel Needs Humility
Last Wednesday Snap (SNAP) , the parent company of Snapchat, posted its first earnings report since its debut as a public company back in March. And the numbers were not great.
While Cramer was impressed with Snap's engagement, he said CEO Evan Spiegel's arrogance on the conference call was a negative.
"You need humility when you miss the numbers," Cramer added.
10. Valeant Is Not a Good Short
Cramer noted that Valeant Pharmaceuticals (VRX) shares have fallen so much, that there are no sellers. "It's like everyone who's left is saying they're willing to own it," he said.
Jim Cramer and Real Money columnists discuss the latest from President Donald Trump and the GOP efforts to repeal and replace the Affordable Care Act. See which stocks they are discussing and get his insights or analysis with a free trial subscription to Real Money.