Amid ongoing concerns about consumer spending and economic volatility, CNBC’s Jim Cramer evaluated recent earnings reports from major U.S. retailers, urging investors to adopt a cautious and selective strategy when considering retail equities. His analysis covered Home Depot, Lowe’s, TJX Companies, Target, and Walmart, revealing a mixed performance across the sector. n nCramer noted that the week initially appeared bleak for retail until Walmart’s strong results shifted sentiment. “For now, just know that you’ve got to be selective when you’re picking retail stocks in this environment. Not a lot of them are working,” he emphasized. n nHome Depot’s financial update fell short of expectations, prompting the company to revise its full-year outlook downward due to sluggish consumer demand and a cooling housing market. While Cramer acknowledged these headwinds, he maintained that the stock could still hold value, particularly if Federal Reserve rate cuts boost home improvement spending. n nIn contrast, Lowe’s outperformed its rival by delivering both top-line and bottom-line results that exceeded forecasts. Although the company slightly reduced its annual profit projection, it raised its sales outlook, signaling resilience in a challenging climate. n nTarget’s quarterly performance disappointed investors, missing revenue estimates and trimming the upper end of its earnings guidance. Cramer cited declining customer traffic and persistent weakness in discretionary spending as key concerns. Management confirmed ongoing softness across non-essential product categories, reflecting broader consumer caution. n nWalmart, however, stood out by surpassing expectations and raising its full-year forecast. The retailer succeeded in drawing shoppers across various income brackets, reinforcing its position as a destination for value-conscious consumers. n nTJX Companies, parent of TJ Maxx, Marshalls, and HomeGoods, delivered a standout quarter. Cramer attributed its success to a unique business model centered on acquiring surplus inventory at discounted rates, allowing it to thrive when other retailers struggle with excess stock. Unlike Target, TJX reported growth in both transaction volume and average purchase size, indicating strong consumer engagement. “In a complete contrast to Target, the company saw improvement in both the number of transactions and the average transaction amount,” Cramer observed. n
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Be selective when picking retail stocks in this economic environment, Jim Cramer says
CNBC ‘s Jim Cramer reviewed earnings this week from Home Depot , Lowe ‘s , TJX , Target and Walmart , suggesting major retailers ‘ reports so far this season have been a mixed bag. n n”With all the handwringing about the state of the consumer, this was not looking like a great week for retail until this morning, when Walmart…it shot the lights out,” he said. “For now, just know that you ‘ve got to be selective when you ‘re picking retail stocks in this environment. Not a lot of them are working.” n nCramer wasn ‘t too impressed with results from home improvement retailers Home Depot and Lowe ‘s, although he said the latter did comparatively better than the former. Home Depot ‘s earnings came in softer than expected, and the company cut its full-year outlook — citing slower consumer spending and a weaker housing market. Cramer maintained that Home Depot can still be a good stock to own, as it will be a major beneficiary of lower rate cuts from the Federal Reserve. Cramer noted that Lowe ‘s managed to post a top and bottom line beat amid an uncertain economic environment. The company also raised its full-year sales forecast, even though it lowered its full-year profit outlook slightly. n nTarget ‘s quarter disappointed Wall Street, Cramer continued, as it reported a revenue miss and slashed the high end of its earnings guidance. He pointed out that the company ‘s traffic was down, and that management reported “continued softness across the broader discretionary portfolio.” Meanwhile, Target peer Walmart beat the estimates and raised its full-year forecast as the big box retailer managed to attract more shoppers across different income levels. n nTJX, which owns brands including TJ Maxx, Marshalls and HomeGoods, delivered a strong quarter, Cramer said. He suggested the off-price chain is “playing a different game than regular retailers” because it buys excess merchandise from other companies for cheap — so it thrives when the broader industry is having trouble moving product. n n”In a complete contrast to Target, the company saw improvement in both the number of transactions and the average transaction amount,” Cramer said of TJX.