Shares in high-end housewares retailer

Williams-Sonoma

(WSM) - Get Report

slipped Thursday after the company lowered its fourth-quarter revenue outlook despite posting a record third-quarter profit.

The San Francisco-based company said net income increased 19.2% to $28.5 million, or 24 cents a share, versus $23.9 million, or 20 cents a share, a year ago. The consensus forecast is 23 cents a share, according to Thomson First Call.

Revenue rose 14.2% to $722.8 million during the quarter ended Oct. 31. Overall, same-store sales rose 3.1%, led by a 19.6% gain at outlet stores. Same-store sales at Pottery Barn rose 5.7%, but fell 4.2% at the namesake store chain.

Williams-Sonoma lowered its fourth-quarter revenue forecast to $1.11billion to $1.13 billion, versus previous guidance of $1.11 billion to $1.14 billion. Analysts expect $1.13 billion. Same-store sales are seen as increasing 2% to 4%, unchanged from the previous forecast.

The company, however, raised its full-year EPS guidance to $1.58 to $1.62, from $1.57 to $1.61, partly because of a "better-than-expected performance in the third quarter." The consensus forecast is $1.62 a share.

For the full year, the company forecast revenue of $3.16billion to $3.19 billion, versus its previous guidance of $3.16 billion to $3.21 billion. The consensus forecast is for $3.19 billion.

"Based on early results in the fourth quarter, we are encouraged by the early consumer response to our core and seasonal merchandise assortments and the performance of our emerging brands, but are remaining cautious in our outlook of the economy and the retail environment overall," the company said. "Current sales trends have been more volatile than we would expect for this time of year and over 23% of our planned catalog circulation during the fourth quarter is in our emerging brands, which inherently creates a higher level of uncertainty in our forecasts."

In the premarket, shares were trading at $38.40, off 70 cents, or 1.8%.