Yoga-inspired athletic wear producer Lululemon Athletica has raised its full-year earnings guidance after third quarter revenue nearly doubled last year's figures.

The Canadian company said revenue for the three months ended 31 October was up 84% to CAD66.2m (US$66.6m), with comparable store sales increasing 36%, or 26% on a constant dollar basis.

Net income was up to CAD7.6m from CAD1.7m last year, translating into net income figures for the first nine months of the fiscal year of CAD16.2m, up from CAD6.8m.

Revenue for the first nine months was up 75% to CAD169.6m. Lulemon said it planned to open ten more stores in North America in the last quarter of fiscal 2007, with 30-35 more set to open during fiscal 2008.

It raised its guidance for fiscal 2007 diluted EPS to CAD0.40-0.42, from CAD0.30-0.33 previously, based on projected comparable store sales growth in the high 20s - or the low 20s on a constant dollar basis.

"We believe that our performance during the third quarter further demonstrates that our innovative product offering, unique culture and distinct, community-based marketing approach creates brand loyalty and continues to attract healthy and active-minded individuals to the Lululemon brand," said Robert Meers, Lululemon CEO.

"Based on the strong results in both our comp stores as well as our new stores, we are extremely excited about our future growth prospects."

However, the company was forced to hit back against bad publicity earlier this month when the New York Times claimed that tests showed Lululemon's VitaSea fabric contained no traces of seaweed, contrary to the company's claims.

Lululemon stood by those claims, but subsequently removed all mention of the clothing's supposed health-giving properties from VitaSea labelling.