Retail can be a confusing world for Jim Cramer. Why the heck are investors willing to pay up for a stock like Ulta Salon, and then completely give up on a stock like PVH Corp even if they both beat quarterly guidance?
"It all has to do with destiny: Ulta is in charge of its own, while PVH is hostage to the environment"
When Ulta reported its 12 percent same-store-sales gain on Thursday, Cramer was struck by how little stands in the way of this company. It doesn't have to fight the weather, strong dollar or e-commerce. Women buy cosmetics and get their hair done regardless of how hot or cold it is.
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That is how this company has the best comparable sales ever in history of being public. CEO Mary Dillon has cracked the code on customer loyalty, and Cramer thinks she could even just be scratching the surface.
PVH is a different story, though. Despite excellent management, the big locations to find its apparel tend to be in tourist destinations, and a strong dollar has cut back on traveling to these locations. It also makes tons of cold weather apparel and that is precisely what is not selling this holiday season.
"PVH and Ulta, what a contrast. No wonder the former sells at just 12 times earnings and the latter trades at triple that number," Cramer said.