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Cramer: As Furniture Stock Swoons, Buy, Buy, Buy!

Down 7% in a week, sellers have been slamming this housing-related play. Cramer, however, thinks the selling is misguided.

"Right now we've got a major bull market in all things housing related, especially the housing related retailers. So when I see a housing related retailer selling off, I smell opportunity," said the Mad Money host on Thursday's broadcast.

And at $25, the level at which Ethan Allen was trading at the time of writing - Cramer viewed Ethan Allen Interiors, TICKER:ETH as an opportunity.

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"They're a purveyor of high quality home furnishings along with free interior design services at their 302 design centers, exactly the kind of thing that should benefit from the housing recovery," he said.

The latest numbers appear to support the thesis.

Ethan Allen Interiors said profits jumped 49% in the quarter ended Sept. 30.

Read More: Higher End Homes Selling Again

Photo: Tim Klein | Photodisc | Getty Images

The company said net income totaled $10.06 million or 35 cents per share. That compares with $6.77 million or 23 cents per share in the same quarter last year.

Sales rose 1.4% to $187.4 million. The company's retail division recorded a 5.6% increase, which boosted sales to $149.1 million. That included a comparable-store sales increase of 5%.

"Not only was the quarter sharply better than expected," said Cramer, "comparable written orders were also strong and they're a terrific forward indicator of same store sales."

Then, what's behind the sell-off?

Although it's unclear, it may be simple profit taking. Shares are 30% higher over only the last 6 months. And lately traders have turned a little negative on retail broadly.

But in either case, Cramer isn't concerned by the recent decline. Quite the opposite.

"I think these sellers are giving you a terrific entry point," said Cramer. "The company looks to be in terrific shape."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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