Total Company net sales for the fiscal first quarter of 2010 are expected to be approximately $475 million, as compared to the Company’s prior outlook for sales of approximately $445 million.

Comparable store sales for the first quarter of 2010 are expected to increase by approximately 11%. By division, comparable store sales at Ann Taylor are expected to increase by approximately 15% and, at LOFT, comparable store sales are expected to increase by approximately 9%. In addition, first quarter e-commerce sales at both brands are expected to increase by more than 50% compared to last year.

Gross margin rate is expected to approach 59%, compared to the Company’s previous outlook which anticipated a gross margin rate of approximately 56.5%.

Selling, general and administrative expenses are expected to be approximately $245 million for the quarter.

The effective tax rate for the first quarter is anticipated to be approximately 41%.

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effectiveness of the Company’s brand awareness and marketing programs, and its ability to maintain the value of its brands;

the Company’s ability to predict accurately client fashion preferences and trends and provide merchandise that satisfies client demands in a timely manner;

the Company’s ability to successfully execute brand extensions and new concepts;

competitive influences and decline in the demand for merchandise offered by the Company, and the Company’s ability to manage inventory levels and merchandise mix;

the Company’s ability to hire, retain and train key personnel;

the Company’s ability to optimize its store portfolio and effectively manage the profitability of its existing stores;

the Company’s reliance on independent foreign sources of production, including financial or political instability, supplier inability to obtain adequate access to liquidity to finance their operations, or the imposition of duties or other possible trade law or import restrictions, including legislation relating to import quotas;

the Company’s ability to successfully upgrade and maintain its information systems, including adequate system security controls;

the Company’s ability to continue operations in accordance with its business continuity plan in the event of an interruption;

the Company’s dependence on a single distribution facility and third-party transportation companies;

the performance and operations of the Company’s websites;

general economic conditions and the recent financial crisis, including the effect on the Company’s liquidity and capital resources, and a downturn in the retail industry;

continuation of lowered levels of consumer spending and consumer confidence, changes in levels of store traffic and higher levels of unemployment resulting from the worldwide economic downturn;

fluctuation in the Company’s level of sales and earnings growth and stock price;

a significant change in the regulatory environment applicable to the Company’s business and the Company’s ability to comply with legal and regulatory requirements;

continued volatility and deterioration of the financial markets, including further tightening of the credit environment, fluctuations in interest rates and exchange rates or restrictions on the transfer of funds;

the Company’s ability to secure and protect trademarks and other intellectual property rights;

failure by independent manufacturers to comply with the Company’s quality, product safety and social practices requirements;

the inability of the Company, particularly through its sourcing and logistics functions, to operate within production and delivery constraints;

acts of war or terrorism in the United States or worldwide;

the potential impact of natural disasters and public health concerns, including severe infectious diseases, particularly on the Company’s foreign sourcing offices and manufacturing operations of the Company’s vendors;

work stoppages, slowdowns or strikes;

the Company’s ability to achieve the results of its restructuring program, including changes in management’s assumptions and projections concerning costs and timing;

the Company’s ability to realize deferred tax assets and the effect of external economic factors on the Company’s future funding obligations for its defined benefit pension plan; and

the bankruptcy or significant deterioration of the Company’s major national landlords.