Lundgren credited Macy's success to having the most talented team in retail. He said the company's "MyMacy's" initiative, which allows local buyers to stock stores with the items that sell best in their regions, has been a huge win, as has the company's omni-channel staff training efforts.

Overall, Lundgren said, he feels good about this holiday season, even with the compressed calendar. He said the retail business is always promotional but Macy's remains in control of its promotions. He said the consumer is feeling a little bit better this year, which is translating into strong sales in many different categories.

Lundgren said that with the cold weather, outerwear has been strong, as have handbags and beauty items. Housewares is also an important category for Macy's, he noted, and there are plenty of hot new items this year. Even big-ticket items like furniture are doing well as the housing market recovers.

When asked why brand names appear to be selling so well, Lundgren said customers know brand names and trust brand names. He said when you buy a brand, you know what you're getting, you know the materials, you know the quality and you know the sizes, all of which are important to a customer.

Finally, when asked about the company's balance sheet, Lundgren said the company is always looking to have a good stock buyback program but Macy's is not opposed to a strategic acquisition if a good one comes along.

With so many retailers complaining this holiday season, Cramer said that Macy's remains a standout.

Lightning Round

In the Lightning Round, Cramer was bullish on BP (BP), Kohlberg Kravis Roberts (KKR), Abbott Laboratories (ABT), Apollo Global Management (APO) and Blackstone Group (BX).

Cramer was bearish on Timken (TKR).

Executive Decision: Patti Hart

For his second "Executive Decision" segment, Cramer sat down with Patti Hart, CEO of International Game Technology (IGT), a stock that's trading down at 12.2 times earnings with a 14.5% growth rate after the company missed earnings last quarter. Shares of IGT also sport a 2.5% dividend yield.

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