Cramer: Don’t write off Costco, and here’s why

Cramer: Here's what's going on with Costco

Despite the fact that Costco Wholesale delivered mixed quarterly results on Wednesday, CNBC's Jim Cramer said Thursday investors should not give up on the stock.

"This is a snap judgment by the market," Cramer said on "Squawk on the Street," referring to the stock being lower in early morning trading. "People are very confused about this because people think that Costco is an American company, but they have 673 warehouses, only 474 in the U.S. … so you have a real dollar issue here."

The retailer delivered quarterly earnings of $1.17 per share, slightly above consensus estimates, but posted revenue of $25.52 billion, below expectations. The company also reported a 1 percent drop in same-store sales.

Read More Costco third-qtr comparable sales fall 1 percent

Still, Cramer added that membership income came in line with most Wall Street estimates at $584 million. "To me the most important number for Costco is always membership income."

The dollar index, which measures the greenback's performance against a basket of currencies, was slightly higher in early morning trading, but has gained more than 4 percent in the last month.