Jim Cramer says he doesn't like comparing any company to struggling retailer J.C. Penney, but Coach's disappointing fourth quarter forced his hand.
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.
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"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."