A Retail Name That Works?
Given concerns about higher costs and fashion misses, Cramer on Wednesday said retail is not an easy business.
The "Mad Money" host, however, thinks luxury fashion retailer Saks has the "right formula." When it comes to high-end retail, Cramer had preferred Macy's or Nordstrom . Cramer took a different view after Saks reported the best February same-store sales numbers in the group last week. It posted a 15.3 percent increase, where the average analyst only expected a 5.3 percent rise. Being as Saks caters to affluent customers, Cramer thinks it has the ability to pass on higher costs, too.
"It seems like Saks has discovered the winning formula," Cramer said. "They’re increasing the proportion of super-luxury merchandise in their stores, focusing on Saks exclusive products, using technology to improve their inventory management, fixing up the Web site to drive sales and carrying the kinds of high-end shoes and accessories that we know consumers can’t get enough of right now."
Cramer thinks this stock is a buy at current levels, but wanted to learn more about how it has turned itself around. For answers, he interviewed CEO Steve Sadove. Watch the video to see the full conversation.
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