Before-the-bell on Tuesday, Under Armour said it expected to lose roughly $50 million to $60 million during the fiscal first-quarter as a result of coronavirus outbreak in China.
Under Armour's fourth-quarter sales came in below estimates, and CEO Patrik Frisk told analysts that company sales could fall by a low-single digit percent for the fiscal year.
Shares of Under Armour fell hard Tuesday, sinking 17% as trading began to a new 52-week low.
"They really gave you no reason to own it, whatsoever," the "Mad Money" host said. "It's very rare that you have that."
Cramer said Under Armour's recent difficulties are "stunning," given the quality of the company's leadership. Frisk became CEO on Jan. 1, taking the reigns from founder Kevin Plank, who remains executive chairman and brand chief.
"I've never met a single person who has a bad word about Kevin Plank and this Patrik Frisk," Cramer said. "They're going to have to bring someone in completely from outside. They have to seal someone from Nike."
"They cannot continue this trajectory," he added. "This is terrible."
Under Armour did not immediately respond to a request for comment on Cramer's remarks.
Under Armour has struggled to grow sales for the past few years. In 2017, after more than two decades of quarterly revenue growth above 20%, the Baltimore, Maryland-based company notched its first quarterly loss.
Under Armour is competing with Nike, Lululemon and Adidas in the U.S, but those rivals have appealed to younger consumers by developing more fashionable workout gear. Under Armour, by contrast, has largely stuck to performance.
Shares of Nike are up 19% in the past 12 months, while Lululemon's stock has risen 68% during the same period. Under Armour has fallen 18%.
"You start wondering, are they just the odd-man out? Are they existentially necessary?" Cramer said on "Squawk Box." "I think there's a great company there, but it's sure not coming out."
"I really don't know what the solution is," he added.
— CNBC's Lauren Thomas contributed to this report.