That companies are reporting fewer people visited shopping malls in the third quarter could signal sluggish holiday shopping sales, CNBC's Jim Cramer said Tuesday.
"This reduction in mall traffic is playing havoc with the companies that just thought, 'Well, you know, you build it, they come,' " Cramer said Tuesday on "Squawk on the Street." "It is not happening. There is a real reduction, and it's starting earlier than ever. The holiday season, so far, doesn't look good for mall [retailers]."
Cramer's comments came after the luxury goods maker delivered disappointing guidance. Yet Kors reported earnings of $1 per share for its second quarter, 11 cents above estimates, with revenue above forecasts, as well.
Still, Cramer said the lower guidance "is not what you want to hear, and the stock has to go lower."
In midmorning trade on Tuesday, KORS fell roughly 30 percent from its record price of $101.04 set on Feb. 25. KORS is down 13 percent year-to-date.
—CNBC's Giovanny Moreano contributed to this report.
DISCLOSURE: When this story was published, Cramer's charitable trust did not own Michael Kors. It did, however, own shares of Starbucks.