Cramer's Call: Saks CEO Steve Sadove

Cramer’s been talking about certain retailers who he has been giving the benefit of the doubt. Today he’s got one of the CEOs of those companies – Steve Sadove of Saks - on the phone. Cramer wants to know how Sadove turned his ship around.

Sadove says his company has made a lot of progress, but it’s still early in the game. He says Saks’ success comes from having a great team, clear strategies and a focus on execution.

Sadove also gave employees opportunity to own equity in the company, but he says his goal is to make it clear “who Saks is” by focusing on their core customer. “It’s understanding that Saks is about luxury but it’s about high-end and accessible luxury, and making our stores more productive,” he says. “We’re under-productive compared to some of our competition.”

And what about those big $4 dividends, Cramer asks. “You have to be the only CEO in retail who consistently returns money right to the shareholders.”

Saks sold off its department store assets and had a lot of excess cash, Sadove says. “We thought the best thing to do was to return it back to shareholders and let them decide what they wanted to do with the money.”

Coach , Ralph Lauren and Saks. These are three companies Cramer likes, right here, right now. He thinks Sadove is doing an unbelievable job at the helm of Saks, and he would recommend the stock here at $20, even though it’s been flatlining. He thinks that could be your opportunity to get in.

Questions? Comments?