Williams-Sonoma swings to profit in Q3, beats Street

San Francisco Williams-Sonoma on Thursday said it returned to a third-quarter profit, helped by reduced expenses and improved margins.

The retailer, whose stores include Pottery Barn and its namesake Williams-Sonoma locations, earned $7.3 million in the quarter ended Oct. 31, compared with a loss of $11 million during the same quarter a year earlier.

Sales dipped 3% to $729.3 million from $752.1 million. Analysts expected revenue of $686.1 million.

Same-store sales rose 1.7% during the quarter.

Chairman and CEO Howard Lester said in a statement that shoppers responded well to its products during the quarter, which helped support margins.

The home-decor retailer raised its profit and revenue forecasts for the fourth quarter and year.

Williams-Sonoma has 630 stores and seven direct-mail catalogs, along with six online properties.