SHOO Addict

If you need a new pair of shoes, the one that Cramer likes is Steve Madden ( SHOO).

He said that the company is best of breed in the midprice shoe space as it conquers those markets where people are tired of sneakers.

Steve Madden shoes are a little pricier, a little fancier but still casual, he said, and the company has a retail arm so it can sell its own merchandise.

But, Cramer said, this is a tarnished company. The company founder Steve Madden was sent to prison in 2002 for securities fraud, an event that many believed would signal the end of the company.

But the stock puttered along for three years, and Madden's return to the company has revived the stock, he said.

Cramer said that this stock is about investing in conspicuous consumption, as shoppers who want to look high-end without breaking the bank will buy its products.

And he believes that despite the fact that the stock is up 45% since early August, it's not too late to get on board.

Steve Madden's second-quarter results came in at the high end of its guidance and its gross margin rose 11 percentage points relative to its sales, he said. Also, inventory was down 17%, a good sign in the clothing and apparel businesses.

A caller wanted to know if Brown Shoe ( BWS) can compete with Steve Madden in the midprice shoe space. Cramer said that the trend is about casual shoe wearers turning to slightly more formal, slightly pricier options.

The world is big enough for both, he said.

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