Savings from lower gasoline prices have not boosted retail spending as much as investors would expect, CNBC’s Jim Cramer said on Thursday.
“I didn’t think [Kohl’s] was as bad as it was doing because a lot of people feel, including me, that at a certain point lower gasoline should help,” said Cramer on “Squawk on the Street.” “This plus Ralph Lauren tells you that lower gasoline is still not a factor. It is spotty in retail.”
Department store chain Kohl’s, with the ticker symbol KSS, cut its full-year earnings estimate, citing weak sales during the holiday quarter and “significantly” lower gross margins.
The company’s stock fell more than 17 percent at one point to below $42 in morning trading, pulling down shares of other retailers.
“Kohl’s did not give you a kiss,” added Cramer.
Sales at established stores rose 0.4 percent in its fourth quarter, Kohl’s said, adding that sales were “very volatile” and “less than planned” due a slow start in November and weak demand for winter products in January.
Upscale retailer Ralph Lauren reported a bigger-than-expected decline in holiday-quarter established store sales on Thursday, while Macy’s Inc. posted similar results in January, both blaming the warmer-than-usual quarter and a dearth of tourists.
“This was a shocker. I am just blown away by how bad Kohl’s was this morning,” said Cramer.
— Reuters contributed to this report.
