Mad Money

Retailer tells Cramer of high hopes for year's end

Cramer: Truth behind a turnaround

They say nobody knows retail better than executives on the ground. And this executive says he's optimistic about the second half of the year.

"I'm not a Pollyanna, but I don't think it will be crazy promotional," said PVH CEO Manny Chirico on "Mad Money." He noted that, "We're positioned with strong products and strong presentations" going into the fall season.

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Jim Cramer often checks in with PVH, formerly Phillips-Van Heusen, for insights on retail. With brands ranging from Calvin Klein and Tommy Hilifiger to IZOD, Arrow and more, Cramer feels the prospects of this retailer often speak to the health of the American consumer, in general.

And from Chirico's commentary, it seems reasonable to conclude shoppers are willing to spend on clothing of all sorts.

For example, "We're seeing positives in the Calvin Klein business," Chirico said. "We're seeing strong sell-through, which was better than our plans had indicated. And we're seeing some really strong business for Tommy Hilfiger."

The strength appears to bode well for PVH customers, too, with the company's clothing driving traffic at some department stores.

"Penney's is putting up stronger comps," Chirico said. "They're having great results with IZOD, Van Heusen and Arrow. And at Kohl's, business has taken off in just the last couple of weeks."

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All told, Chirico believes the wind is at his back going into the holidays. "Inventories are in line both in the warehouses and on the balance sheet. And raw costs are going our way. All in all, we're in good shape."

Of course talk, as they say, is cheap. Investors want results. Cramer, however, says seem to confirm what Chirico is saying.

"Today PVH reported after this close, and this time the company delivered a 9-cent earnings beat off of a $1.42 cent basis, with slightly higher than expected revenues and no estimate cuts, the first time in three quarters."

Looking at the numbers and then reflecting on Chirico's comments, Cramer could only say, "I think PVH is back."

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