TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer said investors should be careful with retail stocks.

"These companies are coming out and saying good things. I happen to be a huge back of Lululemon (LULU) but I have for 20 points," Cramer said. "If you come in now, all you're doing is finally listening to me on Lululemon."

Lululemon upped its fourth quarter earnings and sales guidance for the fourth quarter on Monday. 

Want more exclusive investing insight from Jim Cramer? Get 24/7 access to Jim's charitable trust portfolio with a free trial to Action Alerts PLUS!

More from Video

We Asked Our Pros About the Longevity of the Bull Market

We Asked Our Pros About the Longevity of the Bull Market

Legendary Technician Gives Her View of the Current Market

Legendary Technician Gives Her View of the Current Market

Jim Cramer: Be Careful in the Cannabis Stocks

Jim Cramer: Be Careful in the Cannabis Stocks

Want to Buy Stocks for a 10% or Greater Discount? Try Closed-End Funds

Want to Buy Stocks for a 10% or Greater Discount? Try Closed-End Funds

Want to Buy $1 Worth of Stock for 90 Cents or Less?

Want to Buy $1 Worth of Stock for 90 Cents or Less?