The luxury handbag maker reported "substantially lower" foot traffic at its North American stores Wednesday morning, when it announced fourth-quarter profit and revenues losses. Coach shares dropped sharply, more than 6 percent, in the first hour of trading Wednesday, because of the worse-than-expected earnings.
(Read more: Coach reports lower profit, shares fall)
"Really scrambling on this," Cramer said on "Squawk on the Street." "I hate to ever make an analogy to a company that we all hate because they told us that things were fine and then they raised capital. This has a JC Penney feel to it. … I'm not saying Coach is in trouble. I am saying that this is not a buying opportunity."