The retail sector may continue to experience volatility, but three names stand out for following the right strategy, according to CNBC's Jim Cramer.
What Happened
Canada Goose Holdings Inc GOOS, Lululemon Athletica inc. LULU and Urban Outfitters, Inc. URBN boast a "keen grasp of fashion," Cramer said during his daily "Mad Money" show Tuesday. Coupled with management's "terrific execution," these three retailers are winners, he said.
Canada Goose
Canada Goose's stock has soared 175 percent since its public debut in early 2016, and the stock still looks attractive for long-term investors, Cramer said. The high-end luxury winter wear maker continues to transition its business from wholesale to direct-to-consumer model. Canada Goose is diversifying its product line away from heavy winter coats to sweaters, apparel and jackets for fall, Cramer said.
Lululemon
Up more than 60 percent since the start of 2018, Lululemon continues to report earnings that make it clear consumers "absolutely adore" its product line, Cramer said. The company also managed to navigate through the resignation of CEO Laurent Potdevin and report "two blowout quarters in a row," he said.
Urban Outfitters
Urban Outfitters' stock "looked like roadkill" just one year ago, but is undergoing a turnaround amid an improving economic backdrop, Cramer said. Even after the stock's strong performance over the past year, it is still trading at only 17 times next year's earnings, he said.
"I'd be a buyer right here, although I'd like to buy some more into weakness."
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