Jim Cramer Says Michaels Stores Are 'In The Wrong Place On Earth'

Shares of Michaels Companies Inc (NASDAQ: MIK) tumbled more than 8 percent on Tuesday after the company reported its first quarter results.

Michaels said it earned $0.36 per share in the first quarter on revenue of $1.16 billion. Wall Street analysts were expecting the company to earn $0.35 per share on revenue of $1.17 billion.

Comparable sales rose 0.9 percent in the quarter, or 1.4 percent on a constant currency basis. Looking forward, the company to see a comp growth of 0.4 percent to 1.4 percent in the second quarter.

Michaels' stock decline caught the attention of Jim Cramer, who discussed the stock during his daily "Stop Trading" segment.

Cramer was quick to point out that Michaels previously same-store sales came in the 3 percent range, while analysts were looking for a figure of around 2.7 percent in the quarter. However, the reported number of just 0.9 percent is disappointing because Michaels' is seen as a company that "defies Amazon.com, Inc. (NASDAQ: AMZN) as it sells craft supplies that consumers typically want to see and get a first-hand look before buying."

"It doesn't matter," Cramer said. "It's in the wrong place on earth, which is the mall."

Granted Michaels does have some stand-alone stores, Cramer concluded the company's earnings print was "remarkable" - and certainly not in a good way.