Asked how much "lift" resulted from remodeled units, he said that on average, sales increased 15% at those stores. One reason why is the expansion of accessories, including jewelry and footwear, he said.

Meanwhile, comp store sales rose 1.5% chain-wide for the company in its first fiscal quarter of 2007, which included the holiday season. This compares with a 16.3% comp store increase in the same quarter a year ago, and Hoffman projected low single-digit comp-store gains in this year's second quarter.

The best performing first-quarter categories were dresses, woven tops, the company's "refuge" denim collections and its "Blue Chic" intimate apparel brand, especially in sleepwear. Knit sweaters were a lagging sales category for the chain.