Williams-Sonoma Inc reported a higher-than-expected quarterly profit on lower costs and strong holiday sales.

The operator of the Pottery Barn, West Elm and Williams-Sonoma chains won many shoppers in the holiday season by offering more lower-priced home decor items.

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.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)

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