There has been a lot of scrutiny surrounding the company's product discounting, and there are concerns over its margins, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment.
If enough analysts downgrade the stock, then it's likely going to rally even if it reports not-so-good numbers, Cramer predicted.
When enough people turn negative on the stock, he said, it lowers expectations to the point where just-OK results are enough to jump start the stock higher. That very thing could be playing out with Lululemon right now, he added.
After a robust start to 2016, the stock embarked on a big decline in September, falling from its 52-week highs near $82 in late August to about $56 at its current levels. The 30% decline has certainly been swift.