In Wednesday's quarterly DSW conference call with financialanalysts, Horvath noted that DSW, which ended the quarter with 230stores, opening eight new locations in the first quarter, is ontrack to open the 30 new stores planned. "We are prepared to openmore stores if appropriate opportunities are available," Horvathsaid, adding, "We would expect that any additional stores wouldopen late in the second half of the year, and, because ofpreopening expenses, would not be accretive to this year'searnings."

DSW's new store openings this year "are hitting the mark," withmore than $300 per sf in sales, and the company is "more encouragedthan ever about our developer relationships as we continue to growour store base and enhance our store design" after the recent ICSCconference, Horvath said. In addition to expanding its store base,DSW is testing new store designs, including one in Columbus, and isplanning to remodel other stores over time.

During the conference call, DSW reported that net income climbedto $23.7 million and 54 cents a share for the first quarter thatended April 29, compared with $17.5 million and 40 cents a sharefor the first quarter of last year. Sales rose to $357 million forthe first quarter, versus $316 million in the same year-agoquarter, while same store sales decreased 3.6% for the comparable13-week period a year ago when DSW posted an increase of 4.2% incomp sales.