The operator of the Pottery Barn, West Elm and Williams-Sonoma chains also raised its quarterly dividend by 8.3 percent to 13 cents a share, and expects same-store sales to rise 8 percent to 11 percent in the current quarter.
It expects net revenue in the current year to rise by 3 percent to 6 percent and earnings per share, before items, to rise by 22 percent to 33 percent.
Williams-Sonoma won many shoppers in the holiday season by offering more lower-priced home decor items.
Sales at home goods chains had crumbled in the housing downturn, but changes in pricing and merchandising, including the introduction of less expensive items, and pent-up demand for home goods are finally bringing shoppers back to their stores.
Earlier this year, Bed Bath & Beyond
Williams-Sonoma's earnings rose to $88.4 million, or 81 cents a share, in the fourth quarter ended January 31 from $12.2 million, or 12 cents a share, a year earlier.
Excluding one-time items, the company earned 86 cents a share. On that basis, analysts on average had expected 74 cents, according to Thomson Reuters I/B/E/S.
Net sales rose 8.1 percent to $1.09 billion, beating the analysts' average forecast of $1.07 billion. Sales at stores open at least a year rose 7.6 percent.
Williams-Sonoma also gained from trimming its advertising budget and kept inventories tight.
Its shares, which have risen about 21 percent in the past month, were up 2 percent at $24.65 in premarket trading.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn and Derek Caney)