Cramer's Morning Take: Foot Locker 5/19/23

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. Look, I want to address right now Elvin, okay, Foot Locker, let's just go right there.

I expected a bad quarter, we said a bad quarter. I didn't expect this bad quarter. However, I look at what made me want to be interested in it was the trajectory of Ulta, and how this happened exactly when she started with Ulta. She is saying, keep the faith, she saw a dramatic weakness at the end of the quarter, particularly among the lower income people. And look, is it me a culprit at the time? I will say this, I don't like what happened.

But, because there's no way, if you like it, you're obviously not a serious person.

But, it happened in Ulta, and then never looked back, and I didn't want to miss that.

Jeff Marks (0:48)

Right, we have a chart of Ulta, if we can look back and see it too. But I do want to point out, so remember she bought stock shortly after the investor day, and that was just a sign of confidence in her lace-up. Yep, so you can see very early on.

Jim Cramer (1:02)

And I did not want to. That's actually a very big drop, just so you know.

Jeff Marks (1:06)

So she joined Ulta, she became CEO July 2013 That quarter happened in, it was the December, they reported in December.

Jim Cramer (1:13)

Same thing, it went from, believe it or not, this is 118 to 93

Jeff Marks (1:18)

They missed in Lower Gardens back then. That's what I was afraid of missing.

Jim Cramer (1:22)

We should never be afraid of anything. The lesson is that we were a small place hold, but it should have been a watch, not a place.

My bad.

Jeff Marks (1:31)

Yeah, absolutely. But again, she did buy stock, a nice sign of confidence right after the investor day, but things have slowed down meaningfully in the last month and a half.

Jim Cramer (1:41)

Sarah interviewed her, Sarah Eisenhart, our partner, said, look, what she's saying is, this is exactly where I want to be.

Jeff Marks (1:49)

Right, she's getting out of the malls. She's moving off malls. She's exiting and she married Dylan, exiting underperforming stores.

Jim Cramer (1:56)

Right, it's just taking a little longer.

Jeff Marks (1:58)

It's all going to take longer.

Jim Cramer (2:00)

And by the way, it's not like Target was great. It was not like Walmart was great about Apparel. But I don't ever dodge you. I did not want her to do this.

And Sarah said she knew exactly what she said when she came on our show. She was too bullish.

And I talked in the club call the other day about believing. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning meetings every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:36)

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