The kitchen and home-goods retailer recorded revenue of $874.3 million, up 7% from 2011. That easily beat Wall Street, which had predicted revenue of $864.4 million, Reuters noted.
EPS for the quarter was 43 cents, which also beat the 41 cents a share analysts had expected.
Investors savored the results, sending Williams-Sonoma shares up more than 9% in Wednesday morning trading.
Company officials again increased their profit outlook for 2012. They now anticipate full-year earnings of between $2.44 and $2.51 a share, up from prior estimates of between $2.42 and $2.49 a share.
Wall Street is looking for full-year earnings of $2.50 a share.
Williams-Sonoma, which operates West Elm and Pottery Barn stores in addition to its name-brand stores, said sales at its e-commerce division jumped 13.9% over last year, hitting $361 million.
WSM is preparing to open four, company-owned Australian stores next year, its first foray outside North America.