Cramer's 'Mad Money' Recap: Who's Bluffing in the Market?

08/08/07 - 07:31 PM EDT

TheStreet.com Staff

"What's it doing right that everyone's doing wrong?" Cramer asked. It's focusing on investing in its brands, he said. Plus, it is expanding and building its brands overseas. Right now, nearly a third of its sales are from abroad.

Not only is VFC's North Face apparel flying off the shelf, but the company has a great balance sheet and has made some smart acquisitions, Cramer said.

Cramer, mulling VFC's next move, invited Chairman and CEO Mackey McDonald to the show.

The retail environment does continue to be "very choppy" because there's less consumer disposable income, McDonald said. But at the same time, people are shopping. They're just being more selective and choosing high-quality new products, he said.

Right now, "having a portfolio of strong brands is extremely important," McDonald continued. VF Corp. is striving and succeeding at reaching global consumers, and its brands are known everywhere, he said.

Also important is the fact that VF Corp. brands are diversified, McDonald pointed out. They offer apparel for many different types of outdoor activities and sports.

"We're always looking for additional brands," the CEO said. "We establish a target list of areas we're not strong in that we want to be strong in. We find the best brands to fit those needs and try to make the best acquisitions we can."

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