Williams-Sonoma Inc reported a 7.4 percent rise in holiday revenue, prompting the home goods retailer to forecast fourth-quarter results above market estimates.

The operator of the Pottery Barn, West Elm and Williams-Sonoma chains has been helped by its decision to offer more lower-priced home decor items and improved holiday merchandise, driving in more shoppers.

For the holiday period ended December 27, sales increased 7.4 to $783 million.

The company expects fourth-quarter sales of $1.06 billion to $1.08 billion, with profit between 65 cents and 70 cents a share.

On an adjusted basis, the company expects earnings of 69 cents a share to 74 cents a share.

Analysts, on average, were expecting earnings of 50 cents a share, on revenue of $1.03 billion, according to Thomson Reuters I/B/E/S.

Shares of the company were up 1 percent at $23.05 Thursday. They had closed at $22.75 Wednesday on the New York Stock Exchange

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Jarshad Kakkrakandy)