Shares of Pepsi Bottling Group ( PBG) rose 4% after the distributor of Pepsi products posted better-than-expected second-quarter results and increased its full-year volume growth forecast. The company reported second-quarter earnings of $148 million, or 61 cents a share, on revenue of $3.14 billion. Analysts expected earnings of 59 cents a share on revenue of $3.04 billion. Excluding stock-based compensation costs of 4 cents a share and a 3-cent expense related to the devaluation of the Turkish lira, the company would have earned 69 cents a share. A year earlier, the company earned $148 million, or 59 cents a share, on revenue of $2.86 billion. Pepsi Bottling now sees 2006 worldwide volume growth of about 4% and U.S. volume growth of about 3%. The company projects 2006 earnings of $1.82 to $1.88 a share. Analysts project earnings of $1.86 a share. On an adjusted basis, the company anticipates 2006 earnings of $2 to $2.06 a share. Pepsi Bottling now sees free cash flow of $510 million to $530 million for the entire year. Shares were trading up $1.26 to $33.61. Williams-Sonoma ( WSM) fell 5% after the home-goods retailer cut its second-quarter revenue guidance and said its chief executive will retire. The company now estimates second-quarter revenue of $823 million to $837 million, down from an earlier view of $842 million to $856 million. Analysts project revenue of $849.1 million. The company projects earnings of 25 cents to 27 cents a share, up from an earlier forecast of 20 cents to 22 cents a share. Analysts forecast earnings of 23 cents a share. "Although the second quarter is turning out to be more challenging on the top-line in the Pottery Barn brand than we previously expected, we are extremely pleased with the financial benefits that we are realizing from our ongoing operational and cost-containment initiatives," the company said. For the full year, Willams-Sonoma now sees earnings, including items, of $1.97 to $2.01 a share, up from an earlier view of $1.91 to $1.95 a share. Analysts project earnings of $1.97 a share. Separately, Williams-Sonoma said that CEO Ed Mueller will retire Friday. He'll remain as a director until the end of his term in May 2007. Chairman Howard Lester, meanwhile, will take over for Mueller. Lester, who will continue to serve as chairman, previously served as CEO from 1979 to 2001. Williams-Sonoma shares were trading down $1.58 to $31.97.