Williams-Sonoma blows past estimates and raises outlook

NEW YORK (Reuters) - Williams-Sonoma Inc posted a far stronger-than-expected quarterly profit as it used mailers and exclusive merchandise to lure more shoppers, and the upscale chain boosted its full-year outlook.

Shares of the company -- whose rivals include Bed Bath & Beyond Inc , privately held Crate & Barrel and Pier 1 -- rose more than 4 percent.

Williams-Sonoma has risked its high-end image and lowered prices on some items to attract post-recession American shoppers. This in turn helped it win over middle-income consumers who buy pricey goods to convey a wealthier lifestyle.

The company has also been ramping up its email marketing efforts and stepping up its focus on new product lines and exclusive merchandise in a bid to draw new shoppers.

The operator of Williams-Sonoma cookware stores and the Pottery Barn furnishings chain said net profit rose to $30.8 million, or 28 cents a share, in the second quarter ended on August 1, from $399,000, or break-even a share, a year earlier.

Excluding items, the company earned 31 cents a share. Analysts on average were expecting 22 cents, according to Thomson Reuters I/B/E/S.

Net sales rose 15.4 percent to $776 million, beating analysts' estimates of $757.9 million.

For the full year, the company sees net revenue rising 9 percent to 11 percent, up from its earlier forecast of 6 percent to 9 percent.

Williams-Sonoma forecast fiscal-year earnings at $1.63 to $1.70 a share before items. Its previous outlook was $1.39 to $1.48.

Shares of Williams-Sonoma rose 4.1 percent to $29.50 in trading before the market opened.

(Reporting by Ben Klayman in Detroit and Dhanya Skariachan in New York; Editing by Lisa Von Ahn)

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