Speaking on CNBC's Mad Money, Jim Cramer said the quarterly report for Lululemon Athletica inc. (NASDAQ: LULU) won't be a great one because the management is not good, but he would buy the stock because it won't stay independent if it continues to trade in its $40s this time next year.

He would buy half of a position before the earnings, and the other half after the earnings.

Cramer is encouraged by an activist purchase at $42 and sees a strong support at that price level.

The host doesn't, however, like Michael Kors Holdings Ltd (NYSE: KORS). He does not see growth in the name and would sell the stock going into the year-end.

There are better stocks to buy out there, Cramer added.