Cramer’s Favorite Retail Stock?

J. Crew Group is “a top-notch, best-of-breed retailer that is indeed firing on all cylinders,” Cramer told viewers on Tuesday.

He based his call on the company’s most recent quarter, which he said was a “fabulous blowout.” But there are a number of subjective factors that Cramer used to rate the stock as well. Not the least of which is CEO Mickey Drexler.

Drexler was responsible for turning the Gap around in the 1990s, and now he’s brought his vision to J. Crew . During the conference call – which Cramer always recommends reading through – the CEO talked about how consumer habits have changed since the recession and how the shoppers are prioritizing value. He also touched on the ways that his company keeps its products original and proprietary. And he explained how J. Crew creates demand for his products and keeps them at the top of customers’ minds.

Drexler’s biggest gift, Cramer said, has been merging this heightened product sense with flawless execution.

“When they’re both extraordinary,” Cramer said, “you have a match for your portfolio.”

And the CEO is launching new concepts just as he did for the Gap. Drexler built up Gap’s Banana Republic and Old Navy, and now at J. Crew he is responsible for Crew Cuts for kids and Madewell for women. There are plans for a men’s store and a wedding-themed outlet, which is expected to open in New York this summer.

Cramer also liked something he calls J. Crew’s “congratulations quotient.” That’s the number of kudos given during a conference call, and he sees it as an indication of just how strong the quarter was. Well, JCG got pats on the back from 10 of 16 analysts who asked questions, a five-to-eight ratio – “one of the highest I have ever seen,” Cramer said.

J. Crew is up 386% since the market’s bottom one year ago, and Cramer thinks the stock is still a buy.

“As long as Mickey’s there reinventing constantly,” Cramer said, “we say buy, buy, buy to J. Crew.”









Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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