The fiscal 2005 results constituted "the highest dilutedearnings per share and cash flow in the history of the company, andmet or exceeded the earnings guidance we provided to ourshareholders in every quarter," Williams Sonoma CEO Ed Muellercommented in the conference call. Mueller added that, excluding thecharge for Hold Everything, the company's pre-tax operating marginreached double digits for the first time.

For the fourth quarter ended Jan. 29, Williams-Sonoma earned$120.8 million, or $1.02 per diluted share versus $113.7 million,or 95 cents per diluted share in the fourth quarter of fiscal year2004. For the full year, the company's earnings climbed 12.4% to$214.9 million, or $1.81 per diluted share versus $1.60 per dilutedshare in fiscal year 2004.

Net revenues increased 12.1% to $1.21 billion for the fourthquarter and revenues for the full year increased 12.8% to $3.54billion. Comparable store sales increased 5.8% for the quarter and4.9% for the year despite negative comps for the Hold Everythingbrand, which declined 3.2% for the quarter and 10.7% for theyear.