Williams-Sonoma plans to open nine new stores in the secondquarter, following the opening of 12 during the first quarter,bringing its total store base to 569 units. The first-quarteropenings included two Pottery Barn Kids, the concept that had thestrongest comp-store sales increases during the third quarter at3.3%. Overall, the company achieved comp-store sales growth of 1.3%for the quarter on top of 5% comp increases for the same periodlast year.

For the first quarter, the company's revenues increased 10.2% to$794.3 million, versus $720.7 million in the first quarter offiscal-year 2005. Net earnings decreased 11.7% to $23.1 million, or20 cents per diluted share, versus $26.2 million or 22 cents perdiluted share in the first quarter of fiscal 2005.

The company's quarterly profit was impacted by a charge relatedto its Hold Everything brand. Excluding this impact, net earningsfor the first quarter of fiscal year 2006 would have increased15.7% to $30.3 million, or 26 cents per diluted share, versus $26.2million or 22 cent per diluted share in the first quarter of fiscal2005.