Cramer: Macy's Guided Down 'Too Far'

Macy's Inc (NYSE: M) may have surprised some investors Thursday when it reported a better-than-expected Q2 print, which serves as an indication the struggling retailer is in the midst of a turnaround.

Jim Cramer has a somewhat different take on Macy's stock. During his daily "Mad Dash" segment, Cramer said there have been a "series of what I regard as guide-down, guide-down, guide-down, guide-down, guide-down" at Macy's. He added that eventually, the retailer would have reached the point where the guide-down has gone "too far."

Related Link: Macy's Proves It's Taking The Right Steps For A Turnaround

Cramer suggested this is exactly what happened to Macy's as the company "finally beat" in its earnings report. He acknowledged things may not have necessarily gotten "dramatically better" at Macy's, but the earnings print is an encouraging start.

Cramer continued and pointed out Macy will close around 100 of its stores, many of which are actually profitable. This indicates the company is looking to boost its overall profitability at a time when management knows "Amazon is gunning" for them.

"They are getting their act together a little bit better with 2.0 of omnichannel," Cramer said. "They are taking out a lot of cost."