"It's time to get excited about Restoration Hardware (NASDAQ:RSTO)," I wrote three months ago after the home decor retailer surprised investors with a fiscal second-quarter profit.

Last night didn't produce another profitable outing, but the chain still managed to surpass expectations again.

For the October quarter, Restoration Hardware posted a 22% spike in sales to $157.1 million. Even though the company added just one new store to its 103-unit empire over the past year, healthy 3.9% comps growth at the store level was given a major boost by a 58% spike in consumer-direct sales.

The company recorded a loss of $0.15 a share, or $0.13 a share before stock-based compensation expenses. That may seem like a slide from the $0.11 a share deficit it clocked in with a year ago, yet last year's third-quarter showing also includes an income tax benefit that amounted to $0.08 a share. In other words, Restoration Hardware's pre-tax loss actually narrowed for the quarter.

Either way, the results came in comfortably ahead of Wall Street's pros. They were looking for the company to lose $0.16 a share on just 18% in top-line growth.

The specialty retailer's health comes at a time when many of its competitors are reeling. Pier 1 (NYSE:PIR) had to suspend its dividend last month. Shares of Williams-Sonoma (NYSE:WSM) fell nearly 10% two weeks ago, after the company posted disappointing third-quarter results. Bombay (NYSE:BBA) is in an even deeper funk, with double-digit declines in comps, falling sales, and widening losses.

Home decor isn't supposed to be holding up as well as Restoration Hardware's results seem to indicate. Even mainstream hardware stores like Home Depot (NYSE:HD) and Lowe's (NYSE:LOW), which also rely on homeowners with a need to spruce things up, are feeling the housing slump blues.

The favorable momentum at Restoration Hardware will come in handy as it heads into its seasonally potent holiday quarter. The company expects to earn between $0.34 a share to $0.44 a share for the quarter. Sales growth will also accelerate during the period.

Yes, Restoration Hardware may have been the Wall Street laughingstock a couple of years ago -- back when its rivals were doing so well -- but now it's Restoration's time to shine.

For more on the home decor retailers, check out:

Home Depot is an Inside Value recommended stock pick.

Longtime Fool contributor Rick Munarriz has been burned by Restoration Hardware before, but he hasn't been an investor in the stock for years. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.