Tiffany needs to change its luxury-oriented business model to capitalize on lower gas prices, CNBC's Jim Cramer said Friday.
"Tiffany is a classic example of what doesn't work versus say Darden," Cramer said on CNBC's "Squawk on the Street." "Let's say you're pumping [gas] and it was costing you $80, and now it cost $60. You can't take that additional $20 and buy a Tiffany diamond ring. You can go buy a ... more expensive craft beer, but you're not going to buy Tiffany."
Cramer made his remarks after the jewelry company posted fourth-quarter earnings of $1.51 per share, in line with analysts' expectations. Nevertheless, it also reported that quarterly sales declined 1 percent, sending its shares down more than 3 percent late Friday morning. Tiffany's stock is down about 20 percent for the year, according to FactSet.
"Tiffany is the least levered of any company in retail I follow to lower gasoline prices. It just doesn't work, and it's got a lot of issues. It's a well-run company, but it's not a winner in an environment where people have more money and can buy more stuff at Ross Stores," Cramer said.
He said Nordstrom, another high-end retailer, has been able to capitalize on weaker oil prices with its off-price Rack stores. "Nordstrom has pivoted and is more levered toward gasoline."
DISCLOSURE: Cramer's family trust did not own any of the stocks mentioned in this article at the time of its publication.