This 'comeback story' goes higher, Cramer says

DSW saw shares march higher in midday trading on Tuesday after the shoe retailer delivered a quarterly profit of 38 cents per share, beating estimates by 6 cents, and posted revenue above expectations, as well.

"This was a terrific quarter. This is the beginning of the comeback," said CNBC's Jim Cramer, noting that for a long time, DSW "hasn't been a good stock."

"I felt that if it didn't move up, private equity might get involved," he said on "Squawk on the Street." "I think they're gonna out run the posse."

Thanks to the leadership of CEO Michael R. MacDonald, though, the company has been able to turn things around, Cramer said. Comparable sales, for example, have climbed.

This stock goes higher, he said.

—By CNBC's Drew Sandholm

DISCLOSURE: When this story was published, Cramer's charitable trust did not own DSW.

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