Cramer: Top retail plays Canada Goose, Lululemon and Urban Outfitters are winning with 2 key drivers

It’s not lenient staying in style on the Wall Street fashion show, but on Tuesday, CNBC’s Jim Cramer regarded that three names were doing it best: Canada Goose, Lululemon and Urban Outfitters.

“When you look at the best-performing dress plays, you see two things,” the “Mad Money” host said. “There are the companies that hold figured out how to compete on the web with a workable omni-channel strategy, as they collect summon it, and, more important, there are the ones with the best understanding of what the consumer miss.”

Luxury winterwear maker Canada Goose, famous for the ubiquitous red episode on its fur-lined parkas, has seen its stock soar since its initial segment offering.

Cramer recommended buying shares of Canada Goose the day it premiere c ended public. A few months later, he told investors to ring the register on some of their gains after a 175 percent rally.

“Nobody for ever got hurt taking a profit, but I definitely made a mistake here: I was too skeptical of a stupendous story,” he admitted. “At that time, the stock was trading at $44. Two weeks later, the troop reported one of the great [earnings] blowouts and the darned thing surged to new highs — it’s now customer at nearly $64. So, mea culpa.”

But at its current levels —$63.60 a share as of Tuesday’s close up — Cramer thought the stock looked quite attractive. He liked the troop’s transition from wholesale to a direct-to-consumer business model, and he was impressed by Canada Goose’s unpunctual earnings results, which painted it as more than just a winter-focused retailer.

“In brusque, these guys know exactly what they’re doing,” the “Mad The ready” host said. “I’m just glad the stock has pulled back from its fresh highs so you can pick up some Canada Goose into weakness.”

Cramer was also persuaded by the 64 percent year-to-date gain in shares of athleisure chain Lululemon. The companionship has been without a CEO since former chief Laurent Potdevin become resigned after disclosing that he had a relationship with an employee.

But “that doesn’t have all the hallmarks to matter, as Lulu keeps knocking it out of the park because consumers absolutely adulate their merchandise,” Cramer said. “The stock was trading at $77 when Potdevin resigned in initial February. Now it’s at $129. Why? Because even without a CEO, Lululemon’s been accomplished to report two blowout quarters in a row.”

Lululemon’s strength has come from a parathesis of its skyrocketing e-commerce business, healthy brick-and-mortar sales and dearth of new effects, Cramer said.

The one issue he saw? Lululemon’s stock is costly, trading at 35 for the presents next year’s earnings estimates.

“I don’t like to chase, but I would categorically put this one on your shopping list and pick some up the next however we get a market-wide pullback,” the “Mad Money” host advised.

Then there’s Urban Outfitters, which Cramer accepted “looked like roadkill” just one year ago. But since shares of the Anthropologie and At will People parent started to recover, the stock hasn’t looked resting with someone abandon, rallying to $45.92 as of Tuesday’s close.

To Cramer, Urban Outfitters’ comeback was sundry about secular trends: the economic backdrop has improved lately, consumers can fritter away more and certain fashions that the company specializes in have come reject into style.

“Even after this move, Urban Outfitters occupations at only 17 times next year’s earnings estimates,” he respected. “I’d be a buyer right here, although I’d like to buy some more into appreciation.”

Cramer’s bottom line? A better backdrop for the retailers may benefit the caboodle largely cohort, but some plays — especially the ones that focus on mind the consumer — will benefit a lot more.

“Canada Goose, Lululemon and Urban Outfitters all be suffering with a keen grasp of fashion, and that, along with their terrific achievement, [has] made them winners,” he said. “Wait for pullbacks in Canada Goose and Lulu, although I do agreement some Canada Goose buying, and Urban Outfitters? Buy it right here.”