CNBC's Jim Cramer is urging investors to buy shares of Ulta Salon, Cosmetics & Fragrance Inc., which he considers to be a shining retail-industry star.

"They are buzzing with comparable-store sales," Cramer said on "Squawk on the Street." "This is the best retailer I follow, in terms of comparable-store sales. They've got an incredible omnichannel business; they're 'out-Amazoning' Amazon."

Cramer's trust did not own Ulta or Amazon shares when he touted the stock, CNBC reported.

However, CNBC said that Cramer conceded the company's price-to-earnings multiple was rather high, but said: "You have to pay up for this kind of growth."

Ulta late Thursday reported fiscal third-quarter earnings of $71.1 million. On a per-share basis, the Bolingbrook, Illinois-based company said it had net income of $1.11.

The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.

The beauty products retailer posted revenue of $910.7 million in the period, which also topped Street forecasts. Ten analysts surveyed by Zacks expected $879 million.

For the current quarter ending in January, Ulta said it expects revenue in the range of $1.21 billion to $1.23 billion. Analysts surveyed by Zacks had expected revenue of $1.22 billion.

"Ulta has benefited in part from its wide-ranging selection of products for cosmetics, hair care and skin care items. In addition to higher-end items found in Macy’s Inc., Ulta also offers budget-friendly options sold at stores like Wal-Mart Stores Inc. and Walgreens Boots Alliance Inc.," The Wall Street Journal reported.

The struggles at traditional malls have benefited Ulta because it has prompted higher-end brands like Lancome and Clinique — mainstays at department-store cosmetic areas — a greater sense of urgency to expand relationships with the retailer, analysts have said.

"Ulta stores, in contrast, tend to be in unenclosed malls with drive-up convenience, typically in suburban areas. In addition, while other retailers are cutting back on store openings amid decreasing traffic and increasing online sales, Ulta continues to open new locations," the WSJ reported.

The retailer plans to open 100 stores this year, about in line with its five-year expansion guidance of 15 percent.

Ulta's shares jumped $16.40, or 10 percent, to $179.59 in midday Friday trading. They have risen 28 percent so far this year as of Thursday's close.

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