Mad Money w/ Jim Cramer 7/28/25

Summary

Mad Money w/ Jim Cramer – July 28, 2025 Episode Summary

Released on July 28, 2025

Host: CNBC’s Jim Cramer
Podcast: Mad Money

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1. Trade Deals and Economic Impact

Trade Negotiations with Japan and the European Union

Jim Cramer opens the episode by discussing recent trade agreements:

• Trade Deal Achievements:
  • With Japan: Secured favorable terms improving bilateral trade dynamics.
  • With the European Union: Achieved a comprehensive deal, reducing tariffs significantly. (Cramer, 01:09)

Economic Implications:

• Market Response: Despite these wins, the Dow slipped by 64 points, Nasdaq advanced by 0.33%, and the overall market showed muted reactions. (Cramer, 07:28)
• Tariffs: A blanket 15% tariff on most European imports was negotiated, significantly lower than the initially threatened 30%. Cramer emphasizes that this reduction is strategic, aimed at balancing commerce without stifling trade. (Cramer, 14:00)

Cramer's Insights:

• “The central mission of the Trump administration's trade policy was twofold: To bring back jobs to this country and to make it easier for our companies to do business overseas.” (Cramer, 01:09)
• He highlights that America's fair play in trade negotiations has positioned the U.S. advantageously against European and Japanese counterparts.

Energy Commitments:

• European Union committed to purchasing $750 billion in U.S. energy products, potentially displacing Russian gas. This pivot is viewed as a significant strategic win for American energy sectors. (Cramer, 14:00)

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2. Stock Market Overview

Current Market Performance:

• The market has shown resilience, with consistent weekly gains post-Liberation Day lows. Major rotations from tech to industrials, finance, and transport sectors have been nearly flawless. (Cramer, 07:28)

Earnings Season Impact:

• Strong earnings reports have been a primary driver behind the rally, overshadowing the effects of recent trade deals. However, future market moves will depend heavily on upcoming earnings and Federal Reserve decisions. (Cramer, 07:28)

Upcoming Challenges:

• Fed Meeting: Anticipated to be a focal point; President Trump’s influence may lead to pressure for interest rate cuts, regardless of economic indicators. (Cramer, 07:28)
• Labor Report: Scheduled release could sway market sentiment based on strength or weakness, influencing the Fed’s actions. (Cramer, 07:28)

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3. Featured Stocks and Investment Calls

a. BlackRock (Ticker: BLK)

Caller: Robert from New York introduces BlackRock as a top investment.

Cramer's Analysis:

• Valuation: Trades at 23 times earnings, which Cramer deems reasonable given its growth prospects and low risk.
• Performance: Despite recent hits, BlackRock remains a strong buy due to its market position and consistent performance. (Cramer, 08:43 – 09:27)

Notable Quote:
“Blackrock is up in a straight line...it's a buy.” (Cramer, 09:27)

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b. Kava (Ticker: KAVA)

Caller: Robert from Illinois seeks advice on Kava’s volatility.

Cramer's Advice:

• Volatility: Acknowledges significant price swings, advising patience and holding for the long term.
• Recommendation: Wait for a more pronounced dip before considering additional buys, as current dips lack depth. (Cramer, 09:56 – 10:21)

Notable Quote:
“What matters to the market right now is earnings and the Fed meeting. Until we get through this gauntlet of a week, no one on Wall Street is going to care about trade policy.” (Cramer, 10:21)

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c. Deckers Brands (Ticker: DECK)

Caller: Harrison from Missouri discusses Deckers, maker of Hoka and Uggs.

Cramer's Analysis:

• Performance: Despite an 82% rise in 2024, Deckers' stock peaked and subsequently declined due to slowed Hoka growth projections. However, recent earnings surpassed expectations, reigniting bullish sentiments. (Cramer, 14:00 – 29:59)
• Brands: Hoka saw 20% revenue growth, and Uggs grew by nearly 19%, driven by strong international sales.
• Strategic Moves: Management’s acknowledgment of past missteps and focus on product lifecycle management indicate a positive turnaround strategy.

Notable Quote:
“Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run out of steam. But HOKA just delivered almost 20% growth for the latest quarter. So call me a believer.” (Cramer, 29:59)

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d. Tapestry (Ticker: TPR)

Caller: Matt from Harrison explores Tapestry’s blocked merger with Capri Holdings.

Cramer's Analysis:

• Merger Blockage: The FTC blocked the $8.5 billion acquisition, leading to significant stock appreciation as Tapestry refocused on core brands.
• Stock Performance: Up 69% for the year, driven by strategic buybacks and divestitures, such as selling Stuart Weitzman.
• Future Prospects: Emphasis on the Coach brand and turnaround efforts for Kate Spade suggest sustained growth, though high expectations make it a higher-risk investment.

Notable Quote:
“If you like the story, you got my blessing. Put on a small business position for the quarter because from my perspective, Tapestry's management knows exactly what they're doing and they're doing it well.” (Cramer, 38:43 – 38:36)

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e. Lululemon (Ticker: LULU)

Caller: Matt seeks advice on buying more Lululemon shares to lower his cost basis.

Cramer's Response:

• Perspective: Acknowledges the stock’s significant downturn but suggests potential for recovery given investor’s long-term horizon.
• Recommendation: Encourages adding positions cautiously but advises patience due to the stock’s volatility. (Cramer, 30:09 – 30:21)

Notable Quote:
“It's down so low, I would be willing to take a flyer. Why? Because you're young, got your whole life ahead of you.” (Cramer, 30:21)

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4. Lightning Round: Rapid-Fire Stock Picks

Key Mentions:

• Palantir (Ticker: PLTR): Cramer remains bullish, projecting continued upward movement despite recent declines. (Cramer, 39:10 – 39:19)
• Chubb (Insurance, Ticker: CB): Chooses Chubb over Bright House Financial for potential insurance sector gains. (Cramer, 39:44 – 40:07)
• Hecla Mining (Ticker: HL): Advises against reaching for this stock despite SEC filings indicating potential instability. Recommends Agnico Eagle and Pan American for stability in precious metals. (Cramer, 40:07 – 41:18)

Notable Quotes:

• “I think it's going to be blue collar jobs where people have steady income and that place really helps.” (Cramer, 41:18)
• “A high dividend doesn't mean safety. Sometimes it means danger.” (Cramer, 42:36)

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5. Dividend Pitfalls: The Dow's Dividend Cut

Case Study: Dow Chemical (Ticker: DOW)

Overview:

• Dow cut its dividend from 70 cents per quarter to 35 cents, saving approximately $1 billion annually. (Cramer, 42:36)
• Reason: Prolonged downturn in chemical grades due to oversupply and weak global demand.

Cramer's Takeaways:

• High Yield Warning: A high dividend yield often signals underlying issues rather than safety, as evidenced by Dow’s dividend cut.
• Investment Strategy: Avoid reaching for high yields without assessing the sustainability of dividends. (Cramer, 42:36 – 47:24)

Notable Quote:
“A high dividend doesn't mean safety. Sometimes it means danger. If a stock's yield looks too high, it probably is.” (Cramer, 42:36)

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6. Conclusion and Final Insights

Jim Cramer wraps up the episode by emphasizing:

• Focus on Fundamentals: Earnings, management strategies, and sustainable growth are paramount over headline trade news.
• Cautious Optimism: While strategic trade deals and strong earnings present opportunities, investors should remain vigilant about market volatility and macroeconomic factors.
• Diversified Approach: Diversifying investments and avoiding overreliance on high-yield stocks can mitigate potential risks.

Closing Remark:
“If you reach for yield or regard it as a defense, there's a good chance going to let you down. I like to say there's always a bull market somewhere, and I promise you I'd find it just for you right here on Mad Money.” (Cramer, 42:36 – 47:24)

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Notable Quotes with Timestamps

• “The central mission of the Trump administration's trade policy was twofold...” (07:28)
• “Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run out of steam.” (29:59)
• “A high dividend doesn't mean safety. Sometimes it means danger.” (42:36)

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Note: This summary excludes advertisements, intros, and outros to focus solely on the core financial discussions and investment insights provided by Jim Cramer during the episode.

Transcript

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[Jim Cramer]

Stay ahead.

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. Other building friends, I'm just trying to make you a little money. My job is not just to entertain you, but to educate and to teach you. So call me at 1-800-743- CNBC or tweet me. Jim Cramer. We've now got two trade deal wins on our hands. Last week's deal with Japan and this weekend's deal with the European Union. Despite the market's muted response, Dow slipping 64 points as me inching up 0.02%. Nasdaq advancing point three. 33%. I think our country ran the table on both. First, let me just say I play with an open hand. I've never been a free trader. Never. That didn't work for a whole group of angry people in this country who sold their jobs exported to other lands. I know the era of free trade brought down the cost of a lot of things like clothes, like electronics. That certainly changed people's lives for the better. It was egalitarian. We were able to spend much less of our budgets on so much stuff that used to be genuinely expensive when I was a kid. And that's not nothing. But it also led to the de industrialization of vast swaths of America. And a substantial part of the electorate felt the sting, not just the virtue of free trade. The central mission of the Trump administration's trade policy was twofold. To bring back jobs to this country and to make it easier for our countries to do business overseas. See, the dirty secret of free trade is that America was the only country that ever played fair with this stuff. I think the president is winning on both counts. He has a much better hand than these countries and possibly the countries after this, because many of the countries in question have used our market as a dumping ground while buying very little from us. When the president comes in to negotiate, he has nothing to lose. Hence why he's getting his way. With a 15% tariff in European goods. Not so high as to preclude commerce, but high enough to make a difference. These countries won't be flooded with our stuff. They'll still be reluctant, but it looks like something will get bought, including the usual Boeing planes as well as American natural gas. More on that later. Meanwhile, we'll get the tariff money and so far frankly, the cost of these tariffs mostly eaten by the manufacturers themselves. At some point though, I guess they'll be passed on the consumer. Not yet though. Our government showed some real shrewd behavior when it got the European Union to commit to buying $750 billion in energy products from us. That should box out Russia. Even when the war in Ukraine ends, which is a big deal, because I was worried that Europe would just go right back to Russians for gas. Looks like that might be off the table. Then there are the totally opaque gifts from Europe and Japan. So 600 billion from Europe and 5,50 billion investments, loans and guaranteed back loan guarantees from Japan to help support Japanese companies investing in the US not benefit ends up helping our country in some way that's productive. Although there's no real enforcement mechanism with this stuff, we don't know what the strings attached really have to say. It's certainly better than not having these commitments though. Maybe the money can be used to fix our nation's crumbling infrastructure. Who knows. So if these trade deals are so good, then you have to ask yourself why is the market screaming higher? Why was the Dow down today? Great question. Let's answer it first. This is already a fabulous market. It's gone up almost every week since the post Liberation day lows. The rotations from tech to industrials to finance transports, almost perfect. I mean just wow. The earnings so far have been excellent. Totally justifying the rally. The the trade deal with Europe might have meant much more, but earnings season has its own pull. Quite apart from the event driven futures that blunted the advance. Don't get greedy. We are making a ton of money here. Second, there was this pressure article I read this morning about tariff on wheat. There's been drama, there's been brinkmanship, there's been old fashioned Donald Trump wheeling and dealing to the point where it almost feels like we're watching a nation sized episode of the Apprentice. But now we get the drill. You get assigned a number, percentage, some level of ridiculously high tariff. Then you work it down to 15% throwing some sort of sweetener like a natural gas Buy or a big investment and then you cut a deal. It's a colossal game of chicken that turned into some reasonable, rational decision making. We hear every winner. So at this point we just say good. We already freaked out about the terrifying Liberation Day, right? Those tariff announces just, they were frightening. We already rebounded from those lows once we realized that that was just a negotiating position. At this point, nobody's buying stocks off any trade announcements unless something's radically different, and it hasn't been. Now, they shouldn't be radically different. These are really big deals. But. But very few understand them. I don't even know if the White House understands what it gets when Japan and Europe promise those billions. Sovereign wealth fund, maybe Bitcoin reserve, new factories, robots, who knows? Certainly not me. Maybe the Japanese. The Europeans don't even know themselves. Oh, and let's remember the serial nature of this tariff story, which is so daunting. We nailed down one. We have to then focus on another. EU is huge, but now there's China. There's always a big one ahead. Canada will be very big. Mexico will be very big. We'll be doing this for months and months, hence the ennui. It's just maybe too much. There are only four weeks a year where earnings can beat general news, and this is one of them. When Amazon, Apple, Microsoft and Metal all report in one week, they're big enough to defeat the broader news flow. Even if the news is positive. In the absence of big earnings, the EU announcement might have had more impact. But not this week for the Fed meeting. Normally, a Fed meeting where you don't expect a cut is a yawner. But our president, who had the Fed chief walking around a hard hat checking out the renovations, the Federal Reserve, he'll make sure it's anything but a yawner. Regardless of the overall strength of the economy, we're going to see a level of presidential hectoring that will be painful for the markets. No chance to celebrate the EU deal with that ahead of us. Fifth, we got the labor report on Friday, and if it's weak, the President will demand an immediate intermediate rate cut. If it's strong, well, the President will probably still demand a rate cut. In other words, this week is a total gauntlet. The problem with the tariff story is that it's becoming a gigantic distraction from a terrific stock market where only Dow, which is a chemical company and Charter a cable company, have sincerely disappointed. We do have a lot of meme activity, which is always worse, and given how noisy and excessive they are, but it was tamped down today. Putting it all together, given the run we've had, given that we've seemed to have a template that our trading partners can live with. Given that we have China coming up, China, which probably will want the same rate as everyone else. Well, might be difficult. But the bottom line right now we're presuming these tariffs don't matter. What matters is earnings, unemployment, the Fed meeting and you know what? Dead last tariffs. Now, it may be a disappointment to the White House. It could be fraught. It won't be assuaged by a $600 billion from the EU or 550 billion from Japan. This week is a beast of its own. And nobody on Wall street is going to care about trade policy until the week is over. Can I go to Robert? New York, please. Robert.

[Caller (Robert)]

Jim, how you doing? I want to first thank you very much. A special week. It's my birthday week and I want to thank.

[Jim Cramer]

Happy birthday, Robert.

[Caller (Robert)]

Oh, happy birthday to me. Happy birthday to me. Thank God for Jim Cramer. He's made me loads of money.

[Jim Cramer]

They're singing that song everywhere and that's what I love about this great country. Go ahead.

[Caller (Robert)]

Okay. Jim, it's great to speak to you. Anyway. This next stock is a global investment management firm and a major provider of financial technology. They act as a fiduciary for their clients, managing assets for a wide range of institutional and individual investors. They have a market cap chip over 170 billion, making it the world's 96 most valuable company. Wall street analysts are optimistic and so am I that this company will continue to keep having double digit growth. You told us to buy this and you said long term. Hold December 2nd. Go to the videotape. 2024 and May 2nd, 2025. I wish they would split this stock. Jim, Larry Fink is brilliant. BlackRock.

[Jim Cramer]

Yeah, thank you for that. Thank you for that birthday wish too. I think it's terrific. All right. Blackrock is up in a straight line. Robert, as we know, it got hit. It should have gotten hit as aggressively. It did. It only sells at 23 times earnings. I say only because it is tremendous growth and there's very little risk. So I think it's a buy. It's come back. It was, it was just this week. It got to 11:30. It's at 111 17. It is. And thank you for those kind words. Now we're going to stick with another opera. We're going to go to the Midwest. Robert. Robert in Illinois. Robert.

[Caller (Robert)]

Hey, Jim, got a question about Kava. I've held it for a while. I make quite a bit of money last year on it, but it seems to be going in really large chunks. The other day it was down five points one day and back up almost two points the next day. Their earnings are coming up the end of this month I think. Is there any reason for this wild swing? It's kind of tape down.

[Jim Cramer]

Yes. It's what I call it's a terrible trader and there's been these big chunks that come for sale and you have to just close your eyes. You can't watch the trading because it's very, very unnerving and you want to hit it on a real dip which don't have right now because it was down to 70 earlier this year. Wait for a more of a dip for Kava. But I think it's a great long term position. What matters to the market right now is earnings and the Fed meeting. And until we get through this gauntlet of a week, no one on Wall street is going to care about trade policy on man Tonight, in yesterday's trade deal, the announced its plan to purchase $750 billion worth of US energy. I'm revealing potential winners from this investment. Then what the heck is going on with Deckers? The company buying HOKA is sprinting higher and I'm breaking down the earnings report. That is me changing my thesis on the name. And another fashion retailer, Tapestry, has found its footing on Wall Street. I'm digging the situation and seeing if this one still has legs. So stay wet creamer.

[Mad Money Producer]

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[Jim Cramer]

Like I mentioned earlier, yesterday we found out the White House reached this wide ranging trade deal with the European Union with a blanket 15% tariff on most European imports, much lower than the 30% number that President Trump had previously threatened. The news didn't have much impact on stocks today, but I think that's a mistake because when you dig down to the details, there are some big positives here. For example, the EU agreed to purchase 7 and $50 billion worth of US energy, or 250 billion per year for three years. Basically, Europe wants to shift from Russia to the United States is one of their top sources of natural gas because they can't afford to be held hostage by Russia. And if Europe is going to be buying a lot more natural gas from us over the next few years, that's enough lead time to make some bets on the companies that will likely win that business. I've got eight potential winners from the European Energy let's start with a couple of natural gas producers themselves. The first and most obvious, and we've had them on many times, is Equity, the exploration production company Top operations the Appalachian Basin spanning Pennsylvania, West Virginia and Ohio since acquiring a pipeline company called Equity Trans Midstream last year. Equity calls itself, quote, America's only large scale vertically integrated natural gas producer, end quote. And it's the first name I think of these days when I'm on a pure play on natural gas gas production. While the stock didn't bounce today, mainly because the price of natural gas tumbled nearly 3%. It's been a great long term performer, up 51% over the past 12 months. Frankly, equity is a stock I like even without this new EU deal. And this news is just a bonus. Now the other natural gas producer I'm going to give you is a little more, let's say, I would say out of favor. How about that? Is Kotara Energy currently the only energy sector stock in my trial? Trouble Trust. Honestly, I like Kotara more for its optionality than for its natural gas exposure. Specifically, they have the ability to emphasize either crude oil or gas production depending on market market conditions. But if this trade deal with Europe does have the effect of sustainably higher natural gas price in the United States than Qatar can easily lean into that side of the business. But it doesn't hurt. The stock supports a bountiful 3.7% dividend yield. But it does bother me right now the oil business is not doing well for them. Hey, speaking of good yields, some of the best natural gas oriented pipelines have huge benefits. And they're winners too. If Europe imports a lot more liquefied natural gas from us. From the U.S. wow, listen to this energy transfer LP. Okay, now you called me about that a lot of times. Is one of the largest players in the space. Fighting natural gas gathering, compression, treating, storage, transportation and marketing services. With nearly 107,000 miles of pipeline, 235 billion cubic feet of storage capacity and more than 70 natural gas processing and treatment facilities, this is another great long term performer. Stocks roughly tripled over the past five years after digest a lot of debt. Plus, while you wait for the potential EU trade benefit to kick in, you can sit back and collect big fat dividends. The energy transfer dividend gives you a yield of 7.5%. Now if you look for another natural gas oriented pipeline company with some growth, there's one oak. These guys have particularly strong presence bringing natural gas to the Gulf coast, which is where most of our existing natural gas export infrastructure currently sits, the yield isn't quite as strong here. Right now, 1Oak units pay a dividend that yields just over 5%. But with one currently down over 30% from its highs late last year, this one could potentially have more upside than energy Transfer. Next you want some exposure to the companies that make it possible for our country to ship natural gas across the ocean. Now these are the liquefied natural gas place and this is what a lot of people are most excited about. The top dog in this space is Cheniere Energy. LNG is the symbol which has been producing and exporting liquefied natural gas from its Sabine Pass facility in Louisiana for nearly 10 years now, and also has a second working LNG facility in Corpus Christi, Texas. Now, Chenier is the largest LNG producer in the country and already sends a ton of its gas to Europe. It's the obvious winner from this European trade deal, which is why its stock jumped over 3% or 1.4% today. I think it should have gone higher. Doesn't mean it's not done. If Europe really follows through, these guys could have a lot more business. The other LNG exporter that investors seem to be liking today was a real controversial one. Venture Global, which just came public in January of this year and initially like a gigantic bust, but with its stock Falling from an IPO price of 25 all the way down to 675, its lows in April for rebounding to around 15% today, this one's getting attractive. Venture Global was controversial because they did something a little shady. They sold LNG cargoes at high spot prices a couple of years ago, even though they'd previously agreed to lower price exports with the first customers they'd sign. All that said, this does seem to be a potential beneficiary from the trade war news because last year Venture Global signed a deal to send liquefied from Louisiana to Central and Eastern Europe via a receiving terminal in Greece. And that's why the stock shot up over 4% today. Just remember, a lot of their production is still locked up in these lower priced contracts. And there's only so much potential upside here for Venture Global. Finally and quickly, because this isn't my favorite part of the liquefied natural gas food chain, there are a couple of companies involved in the actual transportation of LNG across the ocean and the unloading of LNG once it reached its destination. Take Flex lng, which we recently covered after a caller asked about it and I couldn't answer. Flex LNG has a fleet of 13 ships. Now, they're specifically designed to transport liquefied natural gas. At the time I was focused on the sky high dividend, which currently yields more than 12%. Sometimes that's a red flag, but I think Flex's LNG dividend is safe as they have a bunch of long term agreements with their customers. Finally, let's not forget another one that I talked about a lot which is called Accelerate Energy. That's X, not a AC. That's a company that has 11 specialized structures and they're called floating storage regasification units. In a nutshell, these things turn LNG back into regular natural gas once it reaches its destination. They are ideal to help countries without significant existing infrastructure except cargoes LNG more quick this this is I covered excellent energy when it came public just over three years ago, but not much since then. Mainly because the stock hasn't done much since the ipo. But if the EU wants to speed up the process of receiving its agreed to allocations of liquefied natural gas from the United States then accelerates, business could see a really nice bump. So here's the bottom line. People will keep debating the merge of this trade deal with Europe, but I think the Energy Purchase Committee represent a major positive for American companies in the natural gas food chain. Like the eight I just mentioned, you've got what I call visibility toward these. Now you should do your own homework and see if any of these are right for you. But I hope this helps you know where to look. That money is back after the break.

[Mad Money Producer]

Coming up, has the recent decline in Decker's brands given investors an opportunity to get running a start or a sign to give it the boot? Kramer's taking a closer look next.

[Schwab Market Update Host]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

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[Jim Cramer]

All right, what the heck's going on with this? Deckers brands this maker of the wildly popular Hoka running shoes and the seemingly timeless Uggs boots and had a phenomenal year. In 2024 its stock was up 82%. But then it peaked at 224 in January. It's mostly downhill ever since 112 and changes today. At first the problem was Hoka. When Deckers reported at the end of January, management gave Soft guidance and the previously red hot HOKA was said to be slowing. As a result, Deckers fell 58% from its highs in January to its place post Liberation day lows even after the stock rebounded from those lows ahead of the quarter last week. Now, tankers were still down 48% for the year going into the print, making it one of the worst performers in the S&P 500. But when the company reported last week it delivered an excellent set of numbers and the stock shot up more than 11% in a single session last Friday. So we have to ask ourselves, has Deckers turned to sell three Ram, or is it too soon to circle back to this one, as the stock's nearly 4% decline today would suggest? Okay, first you need to understand is that going into the quarter expectations were incredibly low. That's what happens when a stock gets cut in half. And once expectations get low enough, it's easy for them to be beaten. For example, the analyst looking for 9.1% revenue growth. But Deckers blew that out of the water with a 16.9% revenue growth. While some of that upside was due to the timing of shipments, companies delivered better than expected margins, which translated to a magnificent 25 cent earnings beat off of a 68% basis. But what really got investors excited was the key driver of this outperformance. Remember earlier this year, Wall street basically gave up on the Hoka brand, which is incredibly important as it outcounts roughly 2/3 of the company sales going to the quarter. The analysts were looking for 11.4% revenue growth from Hoka, down substantially from the year before. But Decker shot the lights out with its running shoes. That hoka put up 20% growth. I mean, took a ton of market share. Well, much of Hoka's strength came from its wholesale business, which surged 30% year over year, fueled by a strong performance in international markets, especially in Europe, the Middle east and Asia. I'm sorry, in Africa. While Deckers is based in the U.S. both Hoka and UGG have deep international roots. Sales outside the United States make up almost half the business. In an environment where management still describes US demand as choppy, this strong international performance, it matters. While the growth from Hoka was enough to get investors excited by itself, Uggs also turned in an impressive quarter to the world's famous boots. Company put up nearly 19% revenue growth, also gaining market share. Uggs benefited from strong international growth as well as 30% increase in wholesale, much higher than the measly 6% growth that Wall street was looking for. What a beat. Also, believe it or not, Uggs benefited from their men's footwear business. Men's footwear grew at a double the rate of the overall brand thanks to its sandal and sneaker styles. Now I don't even know they make sandals and sneakers. I thought this brand was all boots. I just bought some by the way on Amazon Prime. Nice. To top it all off, Deckers repurchased $183 million of its own stock last quarter, which is a stock strong show of confidence management. They have still 1.7 billion in cash equivalents. They can put the work that decided to buy more more stock back. That could be positive. Clearly, Deckers had a much better than expected quarter. But it takes more than one thing, one thing to turn things around here. Wall street gives up on your main growth. Different driver. Even though I think this quarter was a real reputation. The bear thesis of course, management didn't shy away from acknowledging the mistakes that have been plaguing the company in recent quarters quarters and what they needed to do to fix those problems. They talked about doing a better job of managing product lifecycles. So they're launching new products when the new products were wanted, ideally aligning with key shopping periods. They were very, very out to their own before this doing what they wanted. Now this had been a sticking point for investors because HOKA launched, you get this, the Bonding nine and the Clifton ten within three months of each other. They that's not how you release new products. These guys also released the Bonding nine in mid January, which is very weird timing. Almost nobody tries to launch anything right after the holiday season messed up. Still, it's always good to have a management team that can acknowledge and learn from the mistakes, which is what Deckers is now doing. Some executives just go into denial even when their stocks get cut in half. Plus, as it turns out, even though the new shoes from HOKA were launched at the wrong time, they're now selling very well. Same goes for the newly released Arahi 8 model. At the same time, management wants to improve their direct to consumer business. Much of the strength this past year quarter came from the wholesale side, with Decker's direct to consumer business lagging behind. Still, management pointed out that on the consumer side they still, quote, they see continual sequential improvement from April to May to June, end quote. On a broader level, management noted that they're seeing a quote, continued shift in US consumer shopping preferences toward in person retail experiences, end quote. And that while customers tend to insert to search for deals online quote Brick and mortar stores remain the primary venue for full price sales, end quote. As a result, Deckers is looking to, quote, selectively expand our own retail locations in key cities around the world, end quote. In other words, take advantage of these trends. That makes sense to me. If you want to sell full price footwear, you need to let people try the shoes in person. By the way, that's exactly what Footlocker found out. It's what Nike found out. So many people just they relied on direct to consumer. It doesn't work. Beyond the quarter that was just reported, management sales and earnings guidance was in line with consensus estimates. Not super impressive, but a notable improvement from the disappointing forecast that tanked in stock back in January. And finally, one of the big overhangs I previously flagged. President Trump's high tariffs on Vietnam, where Deckers does a ton of manufacturing, has now been resolved. We reached a deal with Vietnam and now I have 20% tariff. Deckers says that with mitigation efforts it only represents $110 million hit. Only being a little relative. So where do I stand on Deckers now? Last time I talked about this when I said the stock looked cheap at 17 times earnings even with the Vietnam overhang. Now there's no more overhang and they just report tremendous quantity quarter. Yet the stock only trades at just under 18 times this year's earnings estimates. You're practically getting the quarter and the lower tariffs from Vietnam for free. As for the nearly 4% decline today, we think it was related to an upgrade of Nike from intellectual JP Morgan retail analyst Matt Boss who said that the leading footwear and apparel company was poised to make a major recovery. That may be the case, but we're not convinced that it's going to be at the expense of of Deckers and the Hoka brand. At least based on what quarter just reported. Quarter bottom line. Decker saw its stock collapse earlier this year because everyone thought that HOKA had run out of steam. But HOKA just delivered almost 20% growth for the latest quarter. So call me a believer. I think this one has got more upside. Harrison, Missouri Harrison.

[Caller (Robert)]

Hi Jim, it's so great to talk to you. We are big fans of you in the show. My name is Matt and my son Harrison has a question for you.

[Jim Cramer]

Hey Jeff.

[Caller (Robert)]

I have 3 shares of Lululemon with an average cost basis of 236 shy. Buy another share to bring my cost basis down.

[Jim Cramer]

Wow. You know Harrison, I mean I don't want to like. Harrison's obviously got horse sense. This is a really tough question. Because it is the one of the five worst performing stocks, I think, this year. I'll tell you this, it's down so low, I would be willing to take a flyer. Why? Because you're young, got your whole life ahead of you. I think it's worth it to see Lululemon down 42% this year. Says to me, I want you to buy one share. But then you got to wait, Harrison, because I don't want you to get married to Lululemon. And thank you for the call. Let's go to Bill and Masters. Bill.

[Caller (Robert)]

Jimbo, I've been watching this equity for the last 18 months favorably about it in the past, and all I see is higher lows and higher highs. Isn't that Yahtzee in Dick's Sporting Goods?

[Jim Cramer]

Okay, look, here's where. Here's what I didn't try hard enough. When Dick's bought Foot Locker, I should have just said buy, buy, buy. Instead, it's all the way back. It's kind of like the two that I've been most regretting. That I didn't pound the table deliberately enough and I didn't pound the table Dicks enough. Dick's is still good. They obviously knew what they were doing when they bought Foot Locker. Great relationship, by the way. Now with Nike. Listen, I think Deckers is a this big call for me. It's a bargain. Its current valuation, given the quarterly. Disappointed. I think it's got a lot more upside ahead now. There's plenty of money ahead to. Tapestry's acquisition of Capri holdings was blocked by the Biden administration's FTC, but the stock is soaring a lot. 150%. What gives other than thank you, FTC? I'm sharing. What's driving the move higher then Dow Inc. Cut its dividend last week. You know what? I think this could serve as a warning about reaching for yield. I'm throwing some red flags on a few names and all your calls. Rapid Fire, Tonight's edition of the Lightning Round. So stay with Kramer. Late last year, the Biden administration's Federal Trade Commission blocked yet another merger. Tapestry's $8.5 billion acquisition of Capri Holdings. The deal would have united six fashion accessory brands, varying sizes, under one roof. Tapestry's coach, Kate Spade, Stuart Weitzman, and Capri's Michael Kors, Versace and Jimmy Choo. The FTC argued that this would create an excessively concentrated player in the quote unquote accessible luxury handbags market. And the judge agreed. But if anything's happened ever since that Merger was blocked in October, Tapestry stock Is shot up 148%. It's now up 69% for the year, with a big breakout over the past couple of months. So what the heck is driving this amazing move in a stock that previously has spent the better part of the past decade, decade trading sideways first and foremost, as much as Tapestry, which, by the way, it's the old Coach, wanted to acquire Cap Holdings. Wall street always hated this deal. Tapestry was going to have to borrow a couple billion dollars, overstretching an already stressed balance sheet, all to pay for a company that consistently been a much worse operator. Coach has been working very well, but Tapestry's other two brands have struggled, and people were worried that the whole business would be derailed if they added another basket of declining brands like Michael Kors. Back when the Capri deal was announced In August of 2023, Tapestry stock fell almost 16% on the news, then languished for over a year as the deal was in limbo. So when that federal judge officially blocked the deal last October, Tapestry valued almost 14% in a single day. Recently, the companies vowed to appeal the decision. But about a month later, mid November last year, they gave up on it for good. And then Tapestry jumped another 13% that day. After officially giving up on the Capri deal, Tapestry did a couple of very smart things. They redeemed the deal, debt easing any balance sheet concerns, and they also announced that they'd be adding $2 billion to the buyback. Take the 2.8 billion at the time. A couple of weeks later, late November, they announced that they'd actually been doing a $2 billion accelerated share repurchase program. At the same time, Tapestry had a market cap of roughly $13 billion. The imagine was talking about retiring roughly 15% of the shares outstanding on a pretty rapid timeline. And if you shrink your share count by 15%, then your earnings per share increases significantly. So all the analysts who follow this thing had to raise their estimates, raise their estimates, raise. The rest was very positive. At the same time, management said they wouldn't try to make any more acquisitions until they turned around their struggling Kate Spade brand, which is exactly what Wall street wanted to hear. If everybody. Tapestry went a step further, announcing the sale of their Stuart Weitzman brand to Calories, which is a footwear company, for 105 billion. That has been football all over the place. Small deal, but the message is the same. Tapestry is going to focus on their best opportunities, mean the core Coach brand, turning around Kate Spade, everything else, distraction. And, you know, What? Tapestry pulled it off, which is why the stock keeps running. When the company reported in early February, after management had begun to accept execute that accelerated buyback, the numbers start to get really good. Tapestry deliver a substantial top and bottom line beat. Management raising their full year earnings forecast by 25 cents. And in May, they did it again, beating and raising for the third consecutive quarter. Once again, the company posted top and bottom line beat. Despite all the tariff uncertainty, Tapestry was able to raise the sales and earnings guidance. What's driving the strength now? A lot of it is because the Coach brand keeps getting better and better. Better. Coach grew at a 2% clip on a constant currency basis. When they poured November, that was a 10% in February, now 15% when they reported the most recent results in May. We've got some accelerated revenue growth going here. Rather than acquiring Michael Kors like Tapestry originally planned to do, instead they're having Coach steal as much market share from Coors as possible. Now, why is Coach winning? I think this is another example of what we have seen in the consumer discretionary space for a while now. Consumers want value. Not necessarily absolute value, but relative value. They want high quality goods at reasonable prices. Nobody would ever accuse Coach handbags being cheap, but they cost a couple hundred bucks, not a couple of thousand bucks. If you're in the market for luxury goods, then this stuff represents tremendous value. And as the CEO Joanne Kruvasara pointed out in the last conference call, they're recruiting a new legion of of brand loyalists in the Gen Z demographic. Which means the future looks bright for Tapestry's biggest business. Now, the thing that's still missing from the Tapestry story is the term for the smaller Kate Spade brand, which made up about 20% of sales last year versus 76% for Coach. Now, Kate Spade's constant currency revenue growth has declined for eight straight quarters. Wow. It was down a hideous 12% when they reported in May. Oh God, that was such a a good brand. On the last conference call, the CEO explained that they're trying to turn Kate Spade around by taking the cube Coach. That includes better marketing, directly going after younger consumers and coming up with new products to breathe new life into this formerly iconic brand. The way I see it, even with the once red hot Kate Spade is doing terribly right now, cappers have been putting up great numbers. So if they can turn around Kate Spade, that would be per upside. In the end, giving up on the Capri holdings acquisition turns to be a brilliant move for Tapestry. Rather than buying a bunch of struggling brands, they made a much better investment in their own stock sold off the unexciting Stuart Weitzman business and have turned their core Coach brand into a powerhouse. When your competitors are in bad shape, you don't try to take them over. You just eat them alive. Which is what Coach has been doing to Michael Kors. Now, one caveat. Tapestry reports again on August 14. And given the stock's incredible performance since last October, obviously the expectations you're year are high. The bars like this, I don't think the stock is crazy expensive. You're trading at just under 22 times this year's earnings estimate. 18% earnings growth. Business looks good, but considering it, the stock's up 69% for the year this quarter. I'm calling it inherently risky. Here's the bottom line. Ideally, I want Tapestry to put a good quarter that doesn't quite satisfy the shareholder base, causing a sell off that allows you to buy this stock at a lower price. But if you like the story, you got my blessing. Put on a small business position for the quarter because from my perspective, Tapestry's management knows exactly what they're doing and they're doing it well. They have. Money's back after the break.

[Mad Money Producer]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next, it is time some of the light brokers. Very unpractical. Bye bye bye. Jumping in the course, my step gravy planet sound and then the lightning round is over. Are you ready? Ski Dagon live round crash my store with Lester in Ohio. Lester.

[Caller (Robert)]

Good evening there, Jim.

[Jim Cramer]

Hi, Lester. How are you?

[Caller (Robert)]

I'm pretty good. You say a lot of times that you want to help us make money. Here's your chance to help me.

[Jim Cramer]

Okay, sure.

[Caller (Robert)]

I've got a couple stocks, Palantir and Hood.

[Jim Cramer]

I'm up. Let's just take Palantir. Palantir is a company that when it was a 50, I said was going to go to 100. When it was 100, I said it was going to go to 150. When it was 150, I said it's going to go to 200. And I am not backing away from that. I know the Stock was at 161 or today in reverse, but that's what I'm thinking about. Let's go to Jim in Florida.

[Caller (Robert)]

Jim, Jimmy, chill. A big sunny Naples, Florida. Booyah to you.

[Jim Cramer]

Well, that's a very fine booyah. And how can I help you?

[Caller (Robert)]

My, my question is on a company that currently has a market cap of about 2.8 billion. Currently selling at a P E of about 6. The company is for sale and there appears to be two bidders left on it. I own the preferred stock in this and it's down about 28%, which concerns me. Buy seller Hope, Bright House Financial.

[Jim Cramer]

I'm worried about Bright House Financial. The people passing that. I prefer Chubb if I'm going to be insurance business. I know Chubb has been a weak stock of late, but it's also 12 times earnings. I'm always willing to buy Chubb at 12 times earnings. Let's go to Rich in Florida, please.

[Caller (Robert)]

Rich, my main man, Jimmy.

[Jim Cramer]

Booyah.

[Caller (Robert)]

I got to talk to you for a second. Hey, I got an SEC filing from this company. They sold 33 million shares. They got another 66 million behind registered for sale. I need to find out what the heck is going on with my hecla. Is there any way I can track any of that? Jimmy?

[Jim Cramer]

No, no, this is not unusual. Heck. Well, I just think it's not a, you know, look, I hate to say it, I just don't think it's a high quality mine. Pan American for silver and Agnico Eagle for gold. Those are the two not going away. Let's go to Rob in Florida, please. Rob.

[Caller (Robert)]

Hey. Hello, Jim. First time caller here.

[Jim Cramer]

All right. Good to have you on the show.

[Caller (Robert)]

Yeah, thank you. Started watching Squawk and Mad Money the beginning of the year after finally getting out a mutual fund. Funds did some readjusting in May as things started to recover and everything's green with the exception of one. But I got about a week before you had the CEO on earnings are coming out next week. What should I do with uti?

[Jim Cramer]

No, I. Look, I think that technical schools are the way of the future. I think that the real jobs are not going to be white collar jobs. All those can be taken away from AI. It's going to be blue collar jobs where people have steady income and that place really helps. That's my take. And I say blue collar. Really, it's kind of white collar. That is not AI. How about that? Let's go to Michael in California. Michael.

[Caller (Robert)]

Hey, Jim and Jill. Thanks for taking my call.

[Jim Cramer]

Of course, man. What's going on?

[Caller (Robert)]

Hey, I'm calling about a stock that went up quite a bit and then it's come down quite a bit. Is it time to enter a position in the social networking stock Grnd Grindr?

[Jim Cramer]

Well, I like affinity social networks. I like ones that I think I don't have a lot of debt, that have a lot of opportunities. Now this has got, this has had, this was losing a lot of money. It's expected to make a lot of money next year. So I think it's a very good level to buy Grindr. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[Mad Money Producer]

The Lightning round is sponsored by Charles Schwab. Coming up on the long road of investing. Investors may be drawn to dividends, but Kramer's revealing the warning signs for when a yield turns into a stop.

[Jim Cramer]

Next, a dividend sucker is born every minute. Last week, chemical giant Dow cut its dividend in half, taking from 70 cents per quarter to 35 cents. We're saving about $1 billion annually. Oh, it was a gut wrenching decision for CEO Jim Fitley. There's been a three year downturn in most grades of chemicals for longer than anyone expected, far longer than anybody can remember, largely thanks to oversupply and weak global demand. All throughout this period, I heard that the dividend would protect the stock. When Dow's dividend yield was 5%, the presumption was that you had to buy. Why? Because that was better than the 10 year treasury yield. See, people said you were basically being paid to wait for the chemical business to turn around. It seemed like it can't lose proposition. Now I've always championed the notion that we should be looking for what I call accidental high yields. Stocks that have fallen so low, not based on the company but on a market wide move. Now these stocks can be terrific investments. But was down Accidental high yielder, if you look at its history, you know that Dow cut its dividend in March of 2009 from 42 cents to 15 cents. So it's not like they have a long track record of consistency. No, the lesson at Dallas that if you see a yield that's too high, it's not a sign of safety, it's a sign of danger. I get so many questions about this one because of the high yield in the last year. And as much as I like Jim fiddling, I knew the dividend wasn't as I knew it was unsustainable. How did I know this? Two reasons. The declining cash flow and the declining stock itself. The stock was saying the stock was screaming my yields unsafe. The lesson here is you can't reach for you. Which is exactly what people were doing. They were buying dow for that 5% yield. It's not a defense, it's a red flag. What it says is sell. And look, it's not just Dow. We were attracted to two stocks from our travel trust because of Their high yields. Best Buy and Stanley Black Decker. Best Buy would benefit from the biggest PC cycle in years because of Microsoft's copilot. Stanley would benefit from potential house turn in housing because it seemed natural that once the Fed got inflationary control, it would start cutting rates. Both stocks initially soared. Same thesis. We sold Best Buy to profit and sold Stanley in a small loss, thankfully avoiding a much larger downturn later on. Since then, our government has put up some pretty severe tariffs and the Fed is holding to rate cuts. Sure, President Trump is pressuring Fed chief Jay Powell to cut rates, but it's hard to justify them until we can be certain that the tariffs won't be passed on to the consumer, igniting another wave of inflation. Now, when Stanley last came on the show, they told us they don't expect to turn until 2027, which was disconcerting because it really made me feel the dividend could be in jeopardy between now and then. Especially as the company has so much exposure to Chinese manufacturing. Manufacturing right now. Stanley has plenty of coverage, but its free cash flow is going the wrong way. And I think you'd be reaching for yield if you bought the stock. Your Best Buy Stock now yields 5.6%, one of the highest shielding retailers out there. In itself, though not inspiring, the PC refresh cycle turned out to be a bust. President Trump's tariffs will spike the price of Chinese and Korean appliances. Also that Whirlpool can raise prices too. Although judging by that hideous quote quarter just reported tonight by Whirlpool, where the company slashed its quarterly dividend from A$75 to 90 cents a share. Just what I'm talking about. Whirlpool needs all the help I can get. That's not good for Best Buy. Again, I think you could be reaching for yield here. The problem is one of reassurance. If the dividends in jeopardy, management won't say a word about it. To the actual give you the cut. I spoke to Jim Fiddling many times about how outside his yield worried me. I mean, it just, just didn't seem right. He had faith in the dividend because he assumed this chemical, chemical cycle could finally turn. Why not? He's a chemical guy. But it never did. And the dividend got cut. The moral? A high dividend doesn't mean safety. Sometimes it means danger. If a stock's yield looks too high, it probably is. You aren't being prudent. If you reach for yield or regard it as a defense, there's a good chance going to let you down. I like to say there's always a bull market somewhere, and I promise you I'd find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow.

[Mad Money Disclaimer Voice]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer Is it time.

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