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Accessorize! Watches, Wallets, Belts—Oh My!

Thursday, 19 Aug 2010 | 6:48 PM ET

Buy Fossil, Cramer said Thursday, if you want to play the accessories bull market.

A Vogue Idea?
Listen to Cramer's take on the accessories market.

Like shoes before it, accessories—watches, sunglasses, wallets, belts and handbags, all items that Fossil sells—are on fire right now. A number of retailers said as much when they reported earnings, including Coach , Urban Outfitters and Macy’s , which mentioned specifically the strength in watches.

That’s why Cramer likes Fossil so much. Plus, the company delivered a monster quarter on Aug. 10: a 24-cent beat on earnings per share. The Street expected 34 cents, and Fossil reported 58 cents. And guidance for the third and fourth quarters were much higher than the analysts expected.

At the same time, Fossil has plans to grow its 354 worldwide locations—201 in the US and 153 overseas—with an aggressive focus on extending its footprint here in the States. Even better, though, is the fact that Fossil delivers updated products every 90 days, making it the fastest responder to new industry trends. In essence, the company can charge more because it has what people want.

Even though Fossil is up 35% so far this year, Cramer said it’s still cheap, trading at a mere 12 times earnings with a 17% long-term growth rate.

And “[Thursday’s] pullback gives you a great chance to buy,” he said.

If Fossil doesn’t match your investing tastes, though, Cramer said viewers could buy either Urban Outfitters or Coach, too. The former is “selling accessories like crazy,” while the latter is “aggressively expanding” into China.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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