GO
Loading...

Holiday Trouble for the Retailers?

Monday, 22 Nov 2010 | 6:41 PM ET

As Black Friday approaches, Cramer’s expecting the talking heads to squawk endlessly about the woes of retailers this holiday season. They’ll say the stores have no choice but to offer outrageous discounts to draw customers through their doors. After all, the consumer’s weak and unemployment’s still close to 10 percent.

No Huddle Offense
Cramer takes a look at how business will be this holiday season.

“And they will be wrong,” Cramer said.

A quick review of any of the conference calls last week—Home Depot , Urban Outfitters , Target —showed evidence of what should be the best holidays these companies have seen in years. None of them, Cramer said, save just Sears and Jones Group, had a negative thing to say.

The “Mad Money” host pointed to declining credit problems at Target, strong sneaker sales at Footlocker and Nordstrom’s lean inventories. Against this good news were maybe a half dozen articles about how TVs were being discounted, all of them linking television sales to the possibility of a humbug holiday.

But investors need to steal themselves to this, Cramer said. Hedge funds may try to rumor down the sector, the retailers themselves may try to make it sound like they’re giving away merchandise to bring in more customers, but that will be far from the truth.

‘The retailers are ready, and not even online, which will be incredibly powerful, is going to hurt them,” Cramer said. “Retail stocks—they’re going higher.”

When this story published, Cramer's charitable trust owned Home Depot.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
FL
---
HD
---
JWN
---
SHLD
---
TGT
---
URBN
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.