Williams-Sonoma Ups 2010 View

NEW YORK (TheStreet) -- Williams-Sonoma(WSM) is benefiting from a reignited interest among shoppers for high-end home and kitchen items.

Shares of Williams-Sonoma, which also owns Pottery Barn, were on an upswing Thursday after the company swung to a profit for its first quarter, blew past Wall Street expectations, and raised its full-year outlook. The stock was changing hands in recent trades at $29.66, up 4.2%.

During the quarter Williams-Sonoma said it earned $19.5 million, or 18 cents a share, compared with a loss of $18.7 million, or 18 cents a share, a year ago.

Excluding items, the company reported an justed income of 23 cents a share, significantly more than analysts' estimates of 12 cents.

Williams-Sonoma The Street Ratings: "Buy"

Sales grew 17% to $717.6 million, while same-store sales also surged by about 17%. By division, comparable sales jumped 11% at namesake stores, and 23% at both Pottery Barn and Pottery Barn Kids.

Looking ahead, Williams-Sonoma expects full-year earnings between $1.39 and $1.48 a share, up from prior forecast of $1.16 to $1.26 a share. It also upped its second-quarter guidance to 20 cents a share from 16 cents.

The company also announced that CEO Howard Lester, who has been at the helm 31 years, plans to retire at its annual meeting next week. He will be succeeded by President Laura Alber. Adrian Bellamy, a director, will be taking on his role as chairman.

Reported by Jeanine Poggi in New York.

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