CNBC’s Jim Kramer said Friday that although the retail sector has had a tough week, there are still many winners standing out in the face of the deluge of plummeting stocks.
“The big four aren’t the only retailers reporting this week, and it’s surprising that some of the smaller players actually performed well,” the “Mad Money” host said, referring to retail giants Walmart, Home Depot, Target and Lowe’s.
“While retail is really horrible right now, it’s not uniformly horrible. Most stores may be struggling, but you have a few that are doing well. And I’m telling you TJX is definitely a buy, [BJ’s Wholesale] I’m fine, Foot Locker is good for the trade,” added later.
Kramer’s comments come after several retail giants announced their quarterly earnings this week. Target and Walmart both reported disappointing results as they saw their stocks fall, while Home Depot and Lowe’s performed better.
“These big box chains are being eaten alive by inflation and changing consumer preferences — people are no longer spending like we’re in an epidemic, they’re spending like we’re back to normal,” Kramer said, noting that this has led to an increase in inventory for retailers. Retail these.
While that’s bad news for names like Target and Walmart, it’s a tailwind for discount retailers like BJ’s and TJX, which operates TJ Maxx and Marshalls, Kramer said.
TJX preys on other retailers’ weakness – it’s like an eagle. For several destinations, they could not get much goods because no one had excess stock. …when you see Walmart and Target struggle like this, you know TJX won. “I’m having trouble getting a good product,” he said.
For Foot Locker, Cramer said his better-than-expected quarterly earnings put him in a more comfortable place than many of his big peers.
“It is clear that these people have a better handle on the current retail space than most other operators,” he said.
Disclosure: The Kramer Charitable Fund owns shares in Walmart.
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