Under Armour shares tanked 13 percent at the Wall Street open after the sports apparel and sneaker maker announced before the bell a warning on full-year earnings. UA also missed estimates on quarterly revenue, though adjusted earnings did beat expectations. The stock is down more than 50 percent this year.
"Everybody knew it was going to be horrendous," Cramer said on "Squawk on the Street." "I think this is more secular. I think the company has lost its way. The industry is much tougher."
"I may put this as the worst of the quarter," Cramer added.
Under Armour's North America sales were down 12 percent for the latest quarter amid tough competition from Nike. International revenue climbed 35 percent, the company said.
Cramer said he thinks Under Armour founder and CEO Kevin Plank is a "terrific guy," but "something happened here and it's not just Nike." Plank may come back in "some guise," said Cramer, but added, "I just don't know."