Cramer says Walmart’s strong quarter may not be indicative of consumers as a whole

CNBC’s Jim Cramer on reviewed Walmart‘s quarter, suggesting the big box retailer’s strong results are due to its successful business strategy and aren’t necessarily indicative of a favorable consumer landscape.

“Don’t make the mistake of assuming that Walmart’s results give you some kind of generic read on the consumer,” Cramer said. “You can’t just extrapolate from the best operator in the industry to everyone else.”

Walmart on Thursday topped analysts’ expectations for earnings and revenue and raised its full-year forecast. The stock reached a new 52-week high and by close, shares were up 6.58%.

Investors have broadly worried about the state of consumer spending across the retail sector as inflation persists, but CEO Doug McMillon on the conference call said that, so far, the company is not “experiencing a weaker consumer overall.” Walmart also reported solid business in China, which has been lagging for many other major consumer-oriented companies.

While Thursday also brought a stronger-than-expected consumer spending report for July, according to Cramer, Walmart’s success lies with its value prices and convenient services like online delivery. He said when a company keeps prices at reasonable levels, “the traffic takes care of itself.” Management indicated on the call the company is seeing more engagement across different income brackets, with higher-income customers accounting for the majority of these gains. McMillon said that category is willing to spend more for discretionary items and convenience.

Walmart is one of the first of the major retailers to report this earnings season. While hopeful about the company’s peers, Cramer suggested Walmart leads the pack.

“This quarter’s a testament to the fact that Walmart’s management keeps doing an excellent job,” he said. “I hope the rest of retail can come close, but when it comes to brick and mortar, with the sole exception of Costco, Walmart’s in a league of its own. And, you know what, I think it’s got more room to run.”

Walmart did not immediately respond to request for comment.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Costco.