Cramer's 'Mad Money' Recap: Fashion Do's and Dont's

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"Wall Street is a fashion show, and not every stock has what it takes to make it on the runway," said Jim Cramer on his "Mad Money" TV show Wednesday.

However, some designers are worth buying, especially if the Federal Reserve cuts interest rates further.

The first stock Cramer discussed was Perry Ellis (PERY Quote). Although a longstanding brand, the company has not had a recent stock buyback and has no dividend.

Though the fundamentals are sound and the company had an upside surprise of 16 cents a share, Cramer said that the tragically unhip company is "not for me." Cramer is looking for higher-end best of breed if the economy gets stronger.

A safer pick in the fashion field is Ralph Lauren (RL Quote). Citigroup (C Quote), which Cramer owns for his charitable trust, Action Alerts PLUS, likes the stock and Business Week recently put Ralph Lauren on its list of the top 100 brands.

The company also had some small insider buying, in addition to an augmented stock buyback of $250 million in August.

But Cramer does not believe this is enough to give the stock good fashion sense. Ralph Lauren missed its earnings estimates in the last quarter, "lowered guidance, and the stock blew up," he said.

Also, Ralph Lauren blamed the miss on higher tax rates, something Cramer said companies never do.