Enter multiple symbols separated by commas

Are Trade-Down Stocks Still Working?

By this point in the recovery cycle, with retailers like Tiffany , Saks , Coach and Polo Ralph Lauren at or near their 52-week highs, you’d think the trade-down plays would be out of style. But Family Dollar’s still soaring even though consumers are willing to spend more money.

FDO is up 35% since Cramer’s Nov. 6 recommendation, and just last week the company beat the Street’s earnings estimates and upped its guidance for the next quarter and the full year. Cramer attributes the success to a new store layout, longer hours of operation and the acceptance of new payment methods, such as food stamps and credit cards. Plus, Family Dollar is looking to boost its private-label offerings to take advantage of their higher margins.

So we know FDO is working, but will the run continue? And is the move so far due to company initiatives or still-cautious consumers? Cramer invited CEO Howard Levine on to Mad Money to find out. Watch the video for the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book