Jim Cramer on Gap: "I Know This Stock's Inching Higher After a Quarter I Felt Was Pretty Good"

The Gap, Inc. (NYSE:GAP) is one of the stocks Jim Cramer mentioned in his latest comments. Cramer showed optimism in the company’s quarter, as he said:

“Glum people don’t go out to dinner, do they? They hunker down and stay home, all bummed out, eating ready-made salads and whatever else they can afford from the supermarket without breaking the bank. That’s been a problem for millions of people with the federal employee furloughs and the food stamp cuts, stuff that makes us look like a banana republic. Except I think that that’s an insult to the apparel chain, which is part of a broader turnaround at The Gap, by the way. I know this stock’s inching higher after a quarter I felt was pretty good.”

The Gap, Inc. (NYSE:GAP) sells apparel, accessories, and lifestyle products for men, women, and children under brands like Old Navy, Gap, Banana Republic, and Athleta. During the August 28 episode, Cramer made some comments about the stock. He stated:

“What’s happening with the stock of GAP this evening? After the close, the retail chain, that also owns Old Navy, Banana Republic, and Athleta, reported what, let’s call it, a mixed quarter. GAP posted a 2-cent earnings beat off a 55-cent basis; revenue came in slightly weak… same store sales up just 1%, some were looking for 2. On the other hand, management looks like it’s making real progress on the once ailing Banana Republic.

But then, management also forecasted problems with President Trump’s tariffs, and I think that’s going to be a drag on the company’s margins, and I think it because I said anything that’s involving tariffs just gets people really scared. But you know what? The stock rallied after hours because the conference call was terrific. I loved it. Right now, Wall Street only seems to care about the impact of the tariffs on retail. That will not stay the same. There’s some palpable signs of return here.”

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Disclosure: None. This article is originally published at Insider Monkey.