And the gains could not have been more different. VF's just a steady, high-single-digit grower that is spinning off cash flow like mad and had a strategy of growing internationally that had made the U.S. a less and less important business. It's got this North Face brand that has to be the hottest apparel label in the world.
Ralph Lauren's up for a different reason. This has been one of those stocks that everyone had been convinced was a lay-up short. There was nothing in the pipe except for the joint venture with J.C. Penney (JCP - commentary - Cramer's Take), which, while a big deal, isn't this quarter's biz. The quarter was also made because of a lower tax rate.
To me, it didn't matter. What did matter is that these stocks are part of that early-cycle moment that is the current tug of war. VF shows you that even after two warnings, the stock can still fly. Ralph Lauren tells you that those betting against it aren't cognizant of the cycle or have made it their business to nitpick, and those people are not recognizing a great long-term story.
At the time of publication, Cramer had no positions in the stocks mentioned.
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