Cramer: This Company Has the 'Best Momentum' in Retail

Restoration Hardware has unbelievable momentum and is a "terrific company" that is shaking up the retail market for home furniture, CNBC's Jim Cramer said on "Squawk on the Street" Friday.

"This is really a remarkable company," Cramer said of the furniture retailer. "This is a company that has momentum like I wouldn't believe. Frankly, this is the best momentum of any retailer there is."

A key reason for the momentum is how Restoration is reinventing itself, launching new brands such as an art gallery. "They've got the finest artists, the finest architects, they've got the finest people and their prices are not outrageous," Cramer said.

In Restoration's first-quarter earnings, it reported a 38 percent increase in net revenue with adjusted diluted earnings per share of 6 cents. GAAP diluted earnings per share were reported at zero. The company also said it had a 41 percent increase in comparable store sales as well as adjusted net income of $2.3 million.

Cramer said the company's earnings conference call was "a thing of beauty" that demonstrated a trend where Restoration continues to attract talent, such as key people from competitor Williams-Sonoma.

"You have a school at Williams-Sonoma that is producing graduates who go to Restoration Hardware and do a phenomenal job," he said. "This is just a terrific company."

Cramer said that Restoration's effect on the market for furniture is "one of the greatest share takes I've ever seen."

"The subtext of this is that they're destroying the rest of the industry," he added. "It's just a very well-run company with really good management."

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul