The repercussions of the dramatic decline in department stores have reverberated deeply into the retail sector, and Jim Cramer says this cannot be dismissed as a one-time-only incident.
"The implications here are horrendous for a host of different companies," the "Mad Money" host said.
Perfume and make-up have stood strong as the best segments for stores like Macy's. When Cramer listened to the conference call for Estee Lauder, he realized the struggles of the department store have cut into the company's growth.
The conference call made Cramer want to recommend Ulta Beauty, which was cited by Estee Lauder as one of its best venues. However, he couldn't ignore that department stores were mentioned repeatedly as a source of weakness for Estee Lauder.