Jim Cramer and his Actions Alerts PLUS club for investors sure called it when it came to Kohl's Corp. (KSS - Get Report)  .

The retail giant rallied nearly 12% Tuesday -- one day after Cramer told AAP members to add to their Kohl's positions at about $67.23 a share. Had you bought when Cramer told you to, you'd have made 12.2% on the position given that KSS closed Tuesday at $75.48.

Kohl's soared after announcing plans to expand its agreement with Amazon (AMZN - Get Report) to allow the online giant's customers to return AMZN purchases to virtually any U.S. bricks-and-mortars Kohl's stores. That's way up from about 100 Kohl's stores that had participated in a pilot program to accept Amazon returns.

The news came one day after Cramer recommended buying more Kohl's not specifically on the Amazon announcement (which he hadn't known about), but on a valuation call after KSS stock fell sharply on Monday. Cramer also put his money where his mouth is and bought more KSS shares for his charitable trust, writing that the stock had fallen to his $67 "buy zone."

"A flat $67 price represents a 4% dividend yield and puts the forward multiple at roughly 11.6x, a value too cheap relative to the amount of initiatives in place and management's diligent efforts on the balance sheet," the stockpicker and his research team wrote. (You can read their full research note here.)

And while Cramer hadn't specifically known about Tuesday's announced Amazon deal, he speculated earlier this month that such a move could be coming. During a private April 12 call with Action Alerts PLUS members, Cramer said that he expected the Amazon pilot program "one day to be in the vast majority of their 1,159 stores."

Watch the video above for more of what he said during the call or read the transcript below. Or, sign up for a free 14-day Action Alerts PLUS trial membership to watch all of Jim's roughly hour-long private video call for members and get future e-mail alerts before he makes any trade for his trust.

Video Transcript

Let's begin with a basic that I preach but so few seem to pay attention to... Listen to the entire conference call before passing judgment on a company. Let's take a look at Kohl's for an example, When the company reported its fourth-quarter earnings last March it was better than expected with a solid top- and bottom-line beat and in-line comparable-store sales gains.

Deservedly so, the initial reaction to the print was positive and the stock showed a solid gain when the market opened. But then, as we have seen happen plenty of times with this stock, the early rally began to show cracks.

That's because management guided for first quarter comparable sales to be at the low end of the range because of a soft February and the stock repealed a lot of its gains even as every retailer, and I mean literally every retailer, had a soft February because the weather was so atrocious all over the country.

When you hear "soft" and "February" though you don't relate it to other stocks. You don't bother to reason. You just sell.

But it would have been a huge mistake because not long after, Michelle Gass, the highly regarded CEO of Kohl's, began to talk about their critical relationship with Amazon . Now most retailers live in mortal fear of the Death Star as we like to call it. Not Gass, though. She has struck an amazing partnership with Amazon to sell Amazon-branded products in 200 of its stores-something I expect to grow to five times that. And an incredible partnership where you can bring anything from Amazon back to Kohl's for return has blossomed to where I actually expect it one day to be in the vast majority of their 1,159 stores.

When I spoke to Michelle earlier this week at the JP Morgan conference, she blew me away with how well this deal with Amazon is going. People love the ease of pulling up at a Kohl's [and] walking through the store to the back, dropping their unwrapped wares for return and then, yes, going back to the front of the store buying something along the way.

Now what's incredible here is that we knew that Amazon was important to Kohl's but we were not sure how well it would play on the call-especially because Amazon doesn't like to announce how easy it is to return things. Gass gave us everything we wanted and more so.

Next thing you know, the stock spikes hard, wiping out the decline and then soaring past where it had been at the highs. The result? The stock of Kohl's was the best performer in the entire S&P 500 that day.

But you only got it if you didn't trade the headlines and listened to the whole call.

Oh and for the record, after spending a lot of time with Michelle you can bet we don't want to ring the register on this one. We want to get bigger on any weakness. It is just too cheap to be as small as we are in the position. It's still a two and i think you can buy it on a pullback. Check that, you must buy it on a pullback.