Lester and other Williams-Sonoma executives, commenting during aconference call with financial analysts, said the company was"particularly pleased with the performance of our emerging brands,which include PBteen, Hold Everything, West Elm, andWilliams-Sonoma Home. He also praised the company's efforts toimplement strategies, such as improving its supply chain andtechnology operations. Although the retail environment for homefurnishings and related products "continued to be difficult," thecompany remained focused on its most important initiative, therevitalization of the Pottery Barn brand, Lester said.

The company reported an increase in its retail net revenues inthe first quarter, saying that the increase resulted mainly from a6.3% year-over-year rise in retail leased square footage, including15 net new stores. The company's plans for expansion call forretail leased square footage to increase in the range of 5% to 6%,versus Williams-Sonoma's previous guidance in the range of 4% to5%.

What that means for store count is about 11 net new locationsfor the year, seven of them in emerging brands. In addition toexpanding by adding stores, the company plans to expand the squarefootage of 19 of its locations and to remodel three of itsstores.