Even Howard Schultz Is Probably Jealous Of Ulta's Rewards Program: Jim Cramer

The whole Street is focussed on the big name retailers during the holiday season. However, there is one retailing company that is quietly but aggressively marching ahead much better than its rather big and well known peers - Ulta Salon, Cosmetics & Fragrance, Inc. ULTA.The company recently declared strong third quarter results backed by 9.5% comps, among the highest in the industry.

Jim Cramer was recently seen on CNBC praising the company’s numbers and its management.

“Mary Dillon of Ulta, took this company over in July of last year, had to finally say ‘listen the steroidal growth is over’ (greater) the company went down from $131 to $80, okay, in a six week period. Now, she is going to take out the all time high this morning,” Cramer said.

“How did she do it? hair and care. You go into an ULTA and in the back is a beauty salon, the parlours our mothers called it and those people who use it spend two and a half times, this is on Dillon’s call, two and a half times of what other people who don’t use the hair salon spend. They have got a loyalty program of what 14 million people, which is growing 16%. Ulta is the great growth stock of retail once again,”

On the company comps, Cramer said, “9.5% against a very high number last year, […] Ulta is where you want to be and the Ultamate rewards program is one of the most successful even Howard Schultz is probably jealous of it.”