Aug 27 (Reuters) - Williams-Sonoma ( WSM ) raised its annual

comparable sales forecast and beat Wall Street expectations for

quarterly results on Wednesday, riding on resilient demand for

its furniture and home furnishing products at its Pottery

Barn ( WSM ) and West Elm outlets.

The company now expects annual comparable sales to rise

between 2% and 5%, compared with its previous forecast of flat

to a 3% rise.

However, shares of the retailer were down 1%, as it kept

annual profit and operating margin forecasts intact due to

higher tariff costs.

About 18% of Williams-Sonoma's ( WSM ) products were produced in the

U.S. in fiscal 2024. Among foreign suppliers, roughly 23% was

from China, 16% from India, 14% from Vietnam and 29% from the

rest of the world, the company has said.

U.S. tariffs on imports from India and Vietnam were set at

50% and 20% respectively in August, while duties on Chinese

imports stood at 30%, posing risks to the company's profit

margins.

Still, in the second quarter, its Pottery Barn brand posted

a comparable sales rise 1.1% compared with a 7% decline in the

year-ago quarter, and West Elm logged a 3.3% rise.

Overall, the company reported a second-quarter comparable

sales rise of 3.7%, above expectations of 1.99% growth,

according to data compiled by LSEG.

For the quarter ended August 3, the company reported profit

of $2 per share, beating estimates of $1.80 per share.