Investors in the retail space might do well to think twice about picking luxury brands right now, “ Mad Money ” host Jim Cramer said Wednesday.
“I’m talking Burberry, the phenomenally good clothing company that has done so much to reinvent itself from a stuffy raincoat company to perhaps the most fashion-forward retailer that I know, at least, I like to go to, and I am sure not alone,” he said.
Burberry’s quarterly earnings showed that “the right product line isn’t selling at the same pace it has been,” Cramer said.
“To me that’s another example of the world slowing, not Burberry slowing, and it has to be noted in the same way we have seen Tiffany fall and Coach roll over.”
That’s not to say the high-end fashion retailer is lackluster, by any means. It posted 11 percent revenue growth, albeit compared to 15 percent the previous quarter — and 21 percent the quarter before that.
Analysts’ tendency to blame the results on weak China demand is too simple, Cramer said. “It’s global. If anything I believe China held up rather well, and the company plans to take the number of stores from 63 to 100.”
Instead, he was far more concerned about the company’s performance on this side of the pond.Page 1 of 3 | Next Page