'This company is clearly troubled,' Cramer says

As geopolitical tensions mount, investors seeking to mitigate risk have been drawn to U.S. retailers, CNBC's Jim Cramer said Tuesday. But a disappointing quarter from retailer Conn's "shows you they're not all created equal. Don't presume that everything's good."

Conn's saw shares sink some 30 percent to around $31 in midday trading on Tuesday after the electronics and appliance store chain operator posted second-quarter results that missed expectations and gave a full-year outlook below analysts' forecasts.

Jim Cramer
Adam Jeffery | CNBC
Jim Cramer

"Once again, the Achilles' heel of retail is this electronics business," Cramer said on "Squawk on the Street."

While Conn's delivered strong same-store sales, credit worries were responsible for its miss, Cramer said. That some people weren't able to pay for items on credit shows Conn's customer base is weak, he said.

"This company is clearly troubled," Cramer said. "I don't want to take advantage of the decline in Conn because there's people who want out of it really badly."

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Investors might consider Kohl's and Ross Stores, though, Cramer said. Both retailers set expectations low, helping each company's stock push higher.

—By CNBC's Drew Sandholm. Reuters contributed to this report.

DISCLOSURE: When this story was published, Cramer's charitable trust did not own Conn's, Kohl's and Ross Stores.