“When you’re wrong about a stock, don’t dig in your heels,” Cramer said, as he admitted he was wrong on Lululemon Athletica Inc. (NASDAQ:LULU). This Vancouver, Canada-based retailer sells yoga-inspired athletic clothing and is notorious for its high priced yoga pants at more than $100 a pair.

Cramer told viewers that with Lulu up 84% over the last 12 months, and an unreal 860% from the market lows in 2009, he underestimated this company’s potential for growth and profits. “I’m changing my mind,” he said, as he upgraded Lulu from a buy to a buy, buy, buy.

Cramer told viewers that Lulu has tons of growth ahead. The company currently has 130 stores in the U.S., Canada and Australia. The company plans to add up to 12 stores this year and up to 25 new stores in 2011. Cramer said it will take another six to seven years before Lulu has fully saturated the market.

The company isn’t just adding new stores, its also improving their same-store sales. Lulu’s same-store sales at its existing stores just went up 31% “That’s staggering,” Cramer said, “because most fast-growing retailers only see increases in the low teens.”

Plus, Lulu recently reported earnings of 30 cents a share, which topped Wall Street estimates by six cents on a 56% increase in revenues and upside guidance. Cramer thinks Lulu’s stock is cheap, with shares trading at just 29.9 times earnings with a 27% long-term growth rate.

He mentioned that if you give Lulu a multiple comparable to other lifestyle brands like Whole Foods Market, Inc. (NASDAQ:WFMI) or Chipotle Mexican Grill, Inc. (NYSE:CMG), than the stock should be 28% higher than its current price. Cramer recommended buying the stock on any pullback. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!