(Updates with additional details on results and outlook, stock reaction)
TORONTO, Dec 7 (Reuters) - Canadian yoga and leisure apparel retailer Lululemon Athletica Inc LULU.O reported quarterly profit that beat analysts' forecasts on Wednesday, helped by higher-than-expected gross margins and sales, sending shares up 10 percent in extended trade.
Third-quarter sales online and at stores open at least a year rose 7 percent, excluding exchange rate fluctuations. That beat the 5.4 percent increase expected by analysts, according to Consensus Metrix.
Net income rose to $68.3 million, or 50 cents per share in the third quarter ended October 30, from $53.2 million, or 38 cents per share, in the prior year. Revenue was $544.4 million, up from $479.7 million.
Analysts were expecting, on average, earnings of 43 cents a share and revenue of $540 million, according to Thomson Reuters I/B/E/S.
For the fourth quarter, the Vancouver-based company said it was expecting revenue of $765 million to $785 million and earnings of 96 cents to $1.01 per share.