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|   | PENNSYLVANIA                                                        |   | 23-1721355                                |   |
|--------|---------------------------------------------------------------------|--------|-------------------------------------------|--------|
|   | (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |   |

|   | 450 WINKS LANE,      BENSALEM, PA 19020                  |   | (215)      245-9100                                             |   |
|--------|----------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|   | (Address      of principal executive offices) (Zip Code) |   | (Registrant’s      telephone number, including Area Code) |   |

| Large      Accelerated Filer  x | Accelerated      Filer  o         |
|-------------------------------------------|---------------------------------------------|
| Non-accelerated      Filer  o   | Smaller      Reporting Company  o |

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|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| PART      I.  | FINANCIAL      INFORMATION                                                                                                                      | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      1.  | Financial      Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Condensed      Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | May      3, 2008 and February 2, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Condensed      Consolidated Statements of Operations and Comprehensive    Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|          | Thirteen      weeks ended May 3, 2008 and May 5, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Condensed      Consolidated Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Thirteen      weeks ended May 3, 2008 and May 5, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 4      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Notes      to Condensed Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 5      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 20     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Forward-looking      Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 20     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Critical      Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 22     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Recent      Developments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 23     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Overview                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 23     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Results      of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 25     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Liquidity      and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 30     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 35     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 36     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Impact      of Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 37     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 37     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      4.  | Controls      and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 37     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| PART      II. | OTHER      INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 38     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      1.  | Legal      Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 38     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      1A. | Risk      Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 38     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 39     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item      6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 40     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 42     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|          | Exhibit      Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 43     |

----

|                                                                                                     |   | May      3, |               |   | February      2, |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------|--------------------|--------|------------------|--------|
| (In      thousands, except share amounts)                                                                |   | 2008        |               |   | 2008             |   |
|                                                                                                     |   | (Unaudited) |               |   |             |   |
| ASSETS                                                                                                   |   |        |               |   |             |   |
| Current      assets                                                                                      |   |        |               |   |             |   |
| Cash      and cash equivalents                                                                           |   | $           | 79,175             |   |             | $      | 61,335 |   |
| Available-for-sale      securities                                                                       |   |        | 6,456              |   |             |   | 13,364 |   |
| Accounts      receivable, net of allowances of $6,762 and $6,262                                         |   |        | 8,190              |   |             |   | 33,535 |   |
| Investment      in asset-backed securities                                                               |   |        | 116,119            |   |             |   | 115,912 |   |
| Merchandise      inventories                                                                             |   |        | 371,097            |   |             |   | 330,216 |   |
| Deferred      advertising                                                                                |   |        | 8,177              |   |             |   | 5,546 |   |
| Deferred      taxes                                                                                      |   |        | 8,459              |   |             |   | 7,531 |   |
| Prepayments      and other                                                                               |   |        | 140,432            |   |             |   | 151,716 |   |
| Current      assets of discontinued operations                                                           |   |        | 114,051            |   |             |   | 132,753 |   |
| Total      current assets                                                                                |   |        | 852,156            |   |             |   | 851,908 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| Property,      equipment, and leasehold improvements – at cost                                     |   |        | 1,073,041          |   |             |   | 1,107,662 |   |
| Less      accumulated depreciation and amortization                                                      |   |        | 633,128            |   |             |   | 658,410 |   |
| Net      property, equipment, and leasehold improvements                                                 |   |        | 439,913            |   |             |   | 449,252 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| Trademarks      and other intangible assets                                                              |   |        | 188,762            |   |             |   | 188,942 |   |
| Goodwill                                                                                                 |   |        | 66,666             |   |             |   | 66,666 |   |
| Other      assets                                                                                        |   |        |   55,820 |   |             |   | 56,536 |   |
| Total      assets                                                                                        |   | $           | 1,603,317          |   |             | $      | 1,613,304 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                          |   |        |               |   |             |   |   |   |
| Current      liabilities                                                                                 |   |        |               |   |             |   |   |   |
| Accounts      payable                                                                                    |   | $           | 158,541            |   |             | $      | 122,629 |   |
| Accrued      expenses                                                                                    |   |        | 163,879            |   |             |   | 167,002 |   |
| Current      liabilities of discontinued operations                                                      |   |        | 45,697             |   |             |   | 48,504 |   |
| Current      portion – long-term debt                                                              |   |        |   8,566  |   |             |   | 8,827 |   |
| Total      current liabilities                                                                           |   |        |  376,683      |   |             |   | 346,962 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| Deferred      taxes                                                                                      |   |        | 37,394             |   |             |   | 37,275 |   |
| Other      non-current liabilities                                                                       |   |        | 208,245            |   |             |   | 192,454 |   |
| Long-term      debt                                                                                      |   |        | 306,039            |   |             |   | 306,169 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| Stockholders’      equity                                                                          |   |        |               |   |             |   |   |   |
| Common      Stock $.10 par value:                                                                        |   |        |               |   |             |   |   |   |
| Authorized      – 300,000,000 shares                                                               |   |        |               |   |             |   |   |   |
| Issued      – 151,882,380 shares and 151,569,850 shares                                            |   |        | 15,188             |   |             |   | 15,157 |   |
| Additional      paid-in capital                                                                          |   |        | 411,127            |   |             |   | 407,499 |   |
| Treasury      stock at cost – 38,482,213 shares and 36,477,246 shares                              |   |        | (347,730           | )      |             |   | (336,761 | ) |
| Accumulated      other comprehensive income/(loss)                                                       |   |        | (3                 | )      |             |   | 22 |   |
| Retained      earnings                                                                                   |   |        | 596,374            |   |             |   | 644,527 |   |
| Total      stockholders’ equity                                                                    |   |        | 674,956            |   |             |   | 730,444 |   |
| Total      liabilities and stockholders’ equity                                                    |   | $           | 1,603,317          |   |             | $      | 1,613,304 |   |
|                                                                                                     |   |        |               |   |             |   |   |   |
| Certain      prior-year amounts have been reclassified to conform to the current-year      presentation. |   |
|                                                                                                     |   |
| See      Notes to Condensed Consolidated Financial Statements                                            |   |

----

|                                                                                                       |   | Thirteen Weeks Ended |        |
|------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                                                       |   | May      3,          |        |   | May      5, |   |
| (In      thousands, except per share amounts)                                                              |   | 2008                 |        |   | 2007 |   |
|                                                                                                       |   |                 |        |   |   |   |
| Net      sales                                                                                             |   | $                    | 641,346     |   |   | $ | 696,614 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Cost      of goods sold, buying, catalog, and occupancy expenses                                           |   |                 | 447,183     |   |   |   | 473,151 |   |
| Selling,      general, and administrative expenses                                                         |   |                 | 186,795     |   |   |   | 180,098 |   |
| Restructuring      charges                                                                                 |   |                 |  3,611 |   |   |   |   0 |   |
| Total      operating expenses                                                                              |   |                 | 637,589     |   |   |   | 653,249 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Income      from operations                                                                                |   |                 | 3,757       |   |   |   | 43,365 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Other      income                                                                                          |   |                 | 515         |   |   |   | 1,330 |   |
| Interest      expense                                                                                      |   |                 | (2,369      | ) |   |   | (3,263 | ) |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Income      from continuing operations before income taxes                                                 |   |                 | 1,903       |   |   |   | 41,432 |   |
| Income      tax provision                                                                                  |   |                 |  1,246 |   |   |   | 14,966 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Income      from continuing operations                                                                     |   |                 | 657         |   |   |   | 26,466 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Loss      from discontinued operations, net of income tax benefit of $20,854 in 2008      and $302 in 2007 |   |                 | (35,114     | ) |   |   | (168 | ) |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Net      income/(loss)                                                                                     |   |                 | (34,457     | ) |   |   | 26,298 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Other      comprehensive loss, net of tax                                                                  |   |                 |        |   |   |   |   |   |
| Unrealized      losses on available-for-sale securities, net of income tax                                 |   |                 |        |   |   |   |   |   |
| benefit of $15 in 2008 and $1 in      2007                                                                 |   |                 | (25         | ) |   |   | (3 | ) |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Comprehensive      income/(loss)                                                                           |   | $                    | (34,482     | ) |   | $ | 26,295 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Basic      net income/(loss) per share:                                                                    |   |                 |        |   |   |   |   |   |
| Income      from continuing operations                                                                     |   | $                    | .01         |   |   | $ | .22 |   |
| Loss      from discontinued operations, net of tax                                                         |   |                 | (.31        | ) |   |   | .00 |   |
| Net      income/(loss)(1)                                                                                  |   | $                    | (.30        | ) |   | $ | .21 |   |
|                                                                                                       |   |                 |        |   |   |   |   |   |
| Diluted      net income/(loss) per share:                                                                  |   |                 |        |   |   |   |   |   |
| Income      from continuing operations                                                                     |   | $                    | .01         |   |   | $ | .20 |   |
| Loss      from discontinued operations, net of tax                                                         |   |                 | (.30        | ) |   |   | .00 |   |
| Net      income/(loss)(1)                                                                                  |   | $                    | (.30        | ) |   | $ | .20 |   |
|                                                                                                       |   |
| Certain      prior-year amounts have been reclassified to conform to the current-year      presentation.   |   |
|                                                                                                       |   |
| See      Notes to Condensed Consolidated Financial Statements                                              |   |
| ____________________                                                                                       |   |
| (1)       Results may not add due to rounding.                                                        |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Thirteen Weeks      Ended |               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | May      3,               |               |   | May      5, |   |
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2008                      |               |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |
| Operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      |               |   |   |   |
| Net      income/(loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                         | (34,457            | ) |   | $ | 26,298 |   |
| Adjustments      to reconcile net income/(loss) to net cash provided by operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |               |   |   |   |   |   |
| Depreciation      and      amortization                                                                                                                            |   |                      | 27,188             |   |   |   | 22,744 |   |
| Estimated      loss on disposition of discontinued      operations                                                                                                 |   |                      | 45,251             |   |   |   | 0 |   |
| Deferred      income      taxes                                                                                                                                    |   |                      | (1,036             | ) |   |   | (395 | ) |
| Stock-based      compensation                                                                                                                                      |   |                      | 2,898              |   |   |   | 2,924 |   |
| Excess      tax benefits related to stock-based      compensation                                                                                                  |   |                      | 0                  |   |   |   | (636 | ) |
| Write-down      of deferred taxes related to stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | (263               | ) |   |   | 0 |   |
| Write-down      of capital      assets                                                                                                                             |   |                      | 1,919              |   |   |   | 0 |   |
| Net      loss from disposition of capital      assets                                                                                                              |   |                      | 558                |   |   |   | 460 |   |
| Net      gain from securitization      activities                                                                                                                  |   |                      | (367               | ) |   |   | (328 | ) |
| Changes      in operating assets and liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                      |               |   |   |   |   |   |
| Accounts      receivable,      net                                                                                                                                                     |   |                      | 25,345             |   |   |   | 26,535 |   |
| Merchandise      inventories                                                                                                                                                           |   |                      | (39,060            | ) |   |   | (40,075 | ) |
| Accounts      payable                                                                                                                                                                  |   |                      | 30,864             |   |   |   | 18,496 |   |
| Deferred      advertising                                                                                                                                                              |   |                      | (5,142             | ) |   |   | 1,006 |   |
| Prepayments      and      other                                                                                                                                                        |   |                      | (8,952             | ) |   |   | 4,349 |   |
| Income      taxes      payable                                                                                                                                                         |   |                      | 0                  |   |   |   | 1,869 |   |
| Accrued      expenses and      other                                                                                                                                                   |   |                      |  1,414        |   |   |   | (4,318 | ) |
| Net      cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                      |  46,160       |   |   |   | 58,929 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |   |   |
| Investing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      |               |   |   |   |   |   |
| Investment      in capital assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      | (22,014            | ) |   |   | (37,511 | ) |
| Gross      purchases of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      | (12,636            | ) |   |   | (1,322 | ) |
| Proceeds      from sales of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 19,404             |   |   |   | 2,563 |   |
| Increase      in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                      |        (36    | ) |   |   | (2,546 | ) |
| Net      cash used by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      | (15,282            | ) |   |   | (38,816 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |   |   |
| Financing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      |               |   |   |   |   |   |
| Proceeds      from issuance of senior convertible notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 0                  |   |   |   | 250,000 |   |
| Proceeds      from long term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 87                 |   |   |   | 0 |   |
| Repayments      of long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | (2,271             | ) |   |   | (2,749 | ) |
| Payments      of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      | (45                | ) |   |   | (6,250 | ) |
| Excess      tax benefits related to stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      | 0                  |   |   |   | 636 |   |
| Purchase      of hedge on senior convertible notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      | 0                  |   |   |   | (82,250 | ) |
| Sale      of common stock warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      | 0                  |   |   |   | 49,050 |   |
| Purchases      of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                      | (10,969            | ) |   |   | (131,102 | ) |
| Net      proceeds/(payments) from shares issued under employee stock      plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                      |   69     |   |   |   | (373 | ) |
| Net      cash provided/(used) by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |  (13,129      | ) |   |   | 76,962 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |   |   |
| Increase      in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      | 17,749             |   |   |   | 97,075 |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      |   61,842 |   |   |   | 143,838 |   |
| Cash      and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                         | 79,591             |   |   | $ | 240,913 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |   |   |
| Non-cash      financing and investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                      |               |   |   |   |   |   |
| Assets      acquired through capital leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                         | 1,793              |   |   | $ | 0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |               |   |   |   |   |   |

| See      Notes to Condensed Consolidated Financial  Statements |
|----------------------------------------------------------------|

----

|                                                                                                                                                                                         |   | Thirteen Weeks Ended |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                                                                                         |   | May      3,          |    |   | May      5, |   |
| (In      thousands)                                                                                                                                                                          |   | 2008                 |    |   | 2007 |   |
|                                                                                                                                                                                         |   |                 |    |   |   |   |
| Net      sales                                                                                                                                                                               |   | $                    | 64,679  |   |   | $ | 88,098 |   |
|                                                                                                                                                                                         |   |                 |    |   |   |   |   |   |
| Loss      from discontinued operations                                                                                                                                                       |   | $                    | (55,968 | )(1) |   | $ | (470 | ) |
| Income      tax benefit                                                                                                                                                                      |   |                 | 20,854  | (1) |   |   | 302 |   |
| Loss      from discontinued operations, net of income tax benefit                                                                                                                            |   | $                    | (35,114 | )(1) |   | $ | (168 | ) |
| ____________________                                                                                                                                                                         |   |
| (1)Includes      estimated loss on disposition of ($28,390), net of an income tax benefit      of $16,861 and loss from operations of ($6,724), net of an income tax      benefit of $3,993. |   |

----

| 2004      Stock Award and Incentive Plan           |   |   | 735,591 |   |
|----------------------------------------------------|--------|--------|---------|--------|
| 2003      Non-Employee Directors Compensation Plan |   |   | 186,324 |   |
| 1994      Employee Stock Purchase Plan             |   |   | 967,767 |   |
| 1988      Key Employee Stock Option Plan           |   |   | 111,224 |   |

|                                                                 |   |   |      |   |    |   |   |               |   |   | Aggregate           |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|---------|--------|--------|--------------------|--------|--------|---------------------|--------|
|                                                                 |   |   |      |   | Average |   |   |               |   |   | Intrinsic           |   |
|                                                                 |   | Option |      |   | Option  |   |   | Option      Prices |   |   | Value(1)            |   |
|                                                                 |   | Shares |      |   | Price   |   |   | Per Share          |   |   |  (000’s) |   |
|                                                                 |   |   |      |   |    |   |   |               |   |   |                |   |   |   |   |   |   |   |   |
| Outstanding      at February 2, 2008                                 |   |   | 1,894,874 |   |    | $      | 5.95   |               |   | $      | 1.00                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 1,777 |   |
| Granted      – option price      equal to market price         |   |   | 2,572,176 |   |    |   | 5.00   |               |   |   | 5.00                |   |   |   | – |   |   |   | 5.00 |   |   |   |   |   |
| Canceled/forfeited                                                   |   |   | (42,037   | )      |    |   | 6.81   |               |   |   | 1.00                |   |   |   | – |   |   |   | 12.48 |   |   |   |   |   |
| Exercised                                                            |   |   | (80,863   | )      |    |   | 4.65   |               |   |   | 1.00                |   |   |   | – |   |   |   | 5.47 |   |   |   | 67 | (2) |
| Outstanding      at May 3, 2008                                      |   |   | 4,344,150 |   |    | $      | 5.40   |               |   | $      | 1.00                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 0 |   |
| Exercisable      at May 3, 2008                                      |   |   | 1,722,564 |   |    | $      | 6.13   |               |   | $      | 1.00                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 0 |   |
| ____________________                                                 |   |
| (1)       Aggregate market value less aggregate exercise price. |   |
| (2)       As of date of exercise.                               |   |

----

|                                        |   | Thirteen Weeks Ended |   |
|---------------------------------------------|--------|----------------------|--------|
|                                        |   | May      3,          |   |   | May      5, |   |
| (In      thousands)                         |   | 2008                 |   |   | 2007 |   |
|                                        |   |                 |   |   |   |   |
| Total      stock-based compensation expense |   | $                    | 2,898  |   |   | $ | 2,924 |   |

|                                 |   | May      3, |   |   | February      2, |   |
|--------------------------------------|--------|-------------|--------|--------|------------------|--------|
| (In      thousands)                  |   | 2008        |   |   | 2008             |   |
|                                 |   |        |   |   |             |   |
| Due      from customers              |   | $           | 14,952 |   |             | $      | 39,797 |   |
| Allowance      for doubtful accounts |   |        | (6,762 | )      |             |   | (6,262 | ) |
| Net      accounts receivable         |   | $           | 8,190  |   |             | $      | 33,535 |   |

----

|                                                                     |   | May      3, |        |   | February      2, |   |
|--------------------------------------------------------------------------|--------|-------------|-------------|--------|------------------|--------|
| (In      thousands)                                                      |   | 2008        |        |   | 2008             |   |
|                                                                     |   |        |        |   |             |   |
| Trademarks,      tradenames, and internet domain names                   |   | $           | 187,988     |   |             | $      | 187,988 |   |
| Customer      lists, customer relationships, and covenant not to compete |   |        |  6,172 |   |             |   | 6,172 |   |
| Total      at cost                                                       |   |        | 194,160     |   |             |   | 194,160 |   |
| Less      accumulated amortization of customer lists, customer           |   |        |        |   |             |   |   |   |
| relationships, and covenant not      to compete                          |   |        |  5,398 |   |             |   | 5,218 |   |
| Net      trademarks and other intangible assets                          |   | $           | 188,762     |   |             | $      | 188,942 |   |

|                                               |   | May      3, |    |   | February      2, |   |
|----------------------------------------------------|--------|-------------|---------|--------|------------------|--------|
| (In      thousands)                                |   | 2008        |    |   | 2008             |   |
|                                               |   |        |    |   |             |   |
| Long-term      debt                                |   |        |    |   |             |   |
| 1.125%      Senior Convertible Notes, due May 2014 |   | $           | 275,000 |   |             | $      | 275,000 |   |
| Capital      lease obligations                     |   |        | 14,042  |   |             |   | 13,698 |   |
| 6.07%      mortgage note, due October 2014         |   |        | 10,913  |   |             |   | 11,078 |   |
| 6.53%      mortgage note, due November 2012        |   |        | 6,300   |   |             |   | 6,650 |   |
| 7.77%      mortgage note, due December 2011        |   |        | 7,739   |   |             |   | 7,897 |   |
| Other      long-term debt                          |   |        | 611     |   |             |   |  673 |   |
| Total      long-term debt                          |   |        | 314,605 |   |             |   | 314,996 |   |
| Less      current portion                          |   |        | 8,566   |   |             |   |   8,827 |   |
| Long-term      debt                                |   | $           | 306,039 |   |             | $      | 306,169 |   |

----

|                                                                                             |   | Thirteen         |    |
|--------------------------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                                             |   | Weeks      Ended |    |
|                                                                                             |   | May      3,      |    |
| (Dollars      in thousands)                                                                      |   | 2008             |    |
|                                                                                             |   |             |    |
| Total      stockholders’ equity, beginning of period                                       |   | $                | 730,444 |   |
| Cumulative      effect of adoption of EITF Issue No. 06-4(1)                                     |   |             | (13,696 | ) |
| Net      loss                                                                                    |   |             | (34,457 | ) |
| Issuance      of common stock (312,530 shares), net of shares withheld for payroll      taxes    |   |             | 69      |   |
| Purchase      of treasury shares (2,004,967 shares)                                              |   |             | (10,969 | ) |
| Stock-based      compensation expense                                                            |   |             | 2,898   |   |
| Tax      benefit related to call options                                                         |   |             | 955     |   |
| Write-down      of deferred taxes related to stock-based compensation                            |   |             | (263    | ) |
| Unrealized      losses on available-for-sale securities, net of income tax      benefit          |   |             | (25     | ) |
| Total      stockholders’ equity, end of period                                             |   | $                | 674,956 |   |
| ____________________                                                                             |   |             |    |   |
| (1)       See “Note 13. Impact of      Recent Accounting Pronouncements” below. |   |             |    |   |

----

|                                                                                                                                                     |   | Thirteen Weeks Ended |          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------------|
|                                                                                                                                                     |   | May      3,          |          |   | May      5, |   |
| (In      thousands, except per share amounts)                                                                                                            |   | 2008                 |          |   | 2007 |   |
|                                                                                                                                                     |   |                 |          |   |   |   |
| Basic      weighted average common shares outstanding                                                                                                    |   |                 | 114,588       |   |   |   | 123,003 |   |
| Dilutive      effect of assumed conversion of 4.75% Senior Convertible Notes(1)                                                                          |   |                 | 0             |   |   |   | 15,182 |   |
| Dilutive      effect of stock options, stock appreciation rights, and      awards                                                                   |   |                 | 754           |   |   |   | 1,753 |   |
| Diluted      weighted average common shares and equivalents outstanding                                                                                  |   |                 | 115,342       |   |   |   | 139,938 |   |
|                                                                                                                                                     |   |                 |          |   |   |   |   |   |
| Income from      continuing operations                                                                                                              |   | $                    | 657           |   |   | $ | 26,466 |   |
| Decrease      in interest expense from assumed conversion of 4.75% Senior      Convertible                                                               |   |                 |          |   |   |   |   |   |
| Notes, net of income tax      benefit(1)                                                                                                                 |   |                 |   0 |   |   |   | 1,128 |   |
| Income      from continuing operations used to determine diluted net income per      share                                                               |   |                 | 657           |   |   |   | 27,594 |   |
| Loss      from discontinued operations, net of income tax benefit                                                                                        |   |                 | (35,114       | ) |   |   | (168 | ) |
| Net      income/(loss) used to determine diluted net income/(loss) per      share                                                                   |   | $                    | (34,457       | ) |   | $ | 27,426 |   |
|                                                                                                                                                     |   |                 |          |   |   |   |   |   |
| Options      with weighted average exercise price greater than market price, excluded      from                                                          |   |                 |          |   |   |   |   |   |
| computation      of net income/(loss) per share:                                                                                                         |   |                 |          |   |   |   |   |   |
| Number      of shares                                                                                                                                    |   |                 | 1,414         |   |   |   | 1 |   |
| Weighted      average exercise price per share                                                                                                           |   | $                    | 6.66          |   |   | $ | 13.84 |   |
| ____________________                                                                                                                                     |   |
| (1)       The 4.75% Senior Convertible Notes were converted or redeemed on June 4,      2007 (see “Note 4.      Long-term Debt” above). |   |

----

----

----

----

|                                                                                                                                                                                                                                                                                                        |   | Retail |    |   | Direct-to-  |   |   | Corporate |   |   |         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|-------------|--------|--------|-----------|--------|--------|--------------|--------|
| (In      thousands)                                                                                                                                                                                                                                                                                         |   | Stores |    |   | Consumer(1) |   |   | and Other |   |   | Consolidated |   |
|                                                                                                                                                                                                                                                                                                        |   |   |    |   |        |   |   |      |   |   |         |   |
| Thirteen      weeks ended May 3, 2008                                                                                                                                                                                                                                                                       |   |   |    |   |        |   |   |      |   |   |         |   |
| Net      sales                                                                                                                                                                                                                                                                                              |   | $      | 613,391 |   |        | $      | 26,946 |      |   | $      | 1,009        |   |   | $ | 641,346 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                          |   |   | 11,927  |   |        |   | 38     |      |   |   | 15,121       |   |   |   | 27,086 | (3) |
| Income      before interest and taxes                                                                                                                                                                                                                                                                       |   |   | 43,028  |   |        |   | (4,199 | )         |   |   | (34,557      | )(2)   |   |   | 4,272 |   |
| Interest      expense                                                                                                                                                                                                                                                                                       |   |   |    |   |        |   |   |      |   |   | (2,369       | )      |   |   | (2,369 | ) |
| Income      tax provision                                                                                                                                                                                                                                                                                   |   |   |    |   |        |   |   |      |   |   | (1,246       | )      |   |   | (1,246 | ) |
| Income      from continuing operations                                                                                                                                                                                                                                                                      |   |   | 43,028  |   |        |   | (4,199 | )         |   |   | (38,172      | )      |   |   | 657 |   |
| Capital      expenditures                                                                                                                                                                                                                                                                                   |   |   | 18,721  |   |        |   | 0      |      |   |   | 2,972        |   |   |   | 21,693 | (3) |
|                                                                                                                                                                                                                                                                                                        |   |   |    |   |        |   |   |      |   |   |         |   |   |   |   |   |
| Thirteen      weeks ended May 5, 2007                                                                                                                                                                                                                                                                       |   |   |    |   |        |   |   |      |   |   |         |   |   |   |   |   |
| Net      sales                                                                                                                                                                                                                                                                                              |   | $      | 685,781 |   |        | $      | 10,274 |      |   | $      | 559          |   |   | $ | 696,614 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                          |   |   | 12,361  |   |        |   | 22     |      |   |   | 10,327       |   |   |   | 22,710 | (3) |
| Income      before interest and taxes                                                                                                                                                                                                                                                                       |   |   | 75,285  |   |        |   | (776   | )         |   |   | (29,814      | )      |   |   | 44,695 |   |
| Interest      expense                                                                                                                                                                                                                                                                                       |   |   |    |   |        |   |   |      |   |   | (3,263       | )      |   |   | (3,263 | ) |
| Income      tax provision                                                                                                                                                                                                                                                                                   |   |   |    |   |        |   |   |      |   |   | (14,966      | )      |   |   | (14,966 | ) |
| Income      from continuing operations                                                                                                                                                                                                                                                                      |   |   | 75,285  |   |        |   | (776   | )         |   |   | (48,043      | )      |   |   | 26,466 |   |
| Capital      expenditures                                                                                                                                                                                                                                                                                   |   |   | 29,834  |   |        |   | 8      |      |   |   | 7,550        |   |   |   | 37,392 | (3) |
| ____________________                                                                                                                                                                                                                                                                                        |   |
|    (1)       Fiscal 2009 First Quarter includes LANE BRYANT WOMAN    catalog.                                                                                                                                                                                                           |   |
|    (2)       Includes $3,611 of restructuring charges related to the Retail Stores      segment (see “NOTE      11. RESTRUCTURING CHARGES” below).                                                                                                                     |   |
|         (3)  Fiscal 2009 First Quarter excludes $102 of depreciation and      amortization and $321 of capital expenditures, and Fiscal 2008 First      Quarter excludes $34 of depreciation and amortization and $119 of capital      expenditures, related to our discontinued operations. |   |

----

|                                               |   | Costs            |   |   | Costs      Incurred |   |   | Estimated  |   |   | Total            |   |
|----------------------------------------------------|--------|------------------|--------|--------|---------------------|--------|--------|------------|--------|--------|------------------|--------|
|                                               |   | Incurred         |   |   | for      Quarter    |   |   | Remaining  |   |   | Estimated        |   |
|                                               |   | as      of       |   |   | Ended               |   |   | Costs      |   |   | Costs      as of |   |
|                                               |   | February      2, |   |   | May      3,         |   |   | to      be |   |   | May      3,      |   |
| (In      thousands)                                |   | 2008             |   |   | 2008                |   |   | Incurred   |   |   | 2008             |   |
|                                               |   |             |   |   |                |   |   |       |   |   |             |   |
| Severance,      retention, and related costs       |   | $                | 2,792  |   |                | $      | 389    |       |   | $      | 2                |   |   | $ | 3,183 |   |
| Store      lease termination costs                 |   |             | 0      |   |                |   | 572    |       |   |   | 9,089            |   |   |   | 9,661 |   |
| Asset      writedowns and accelerated depreciation |   |             | 11,325 |   |                |   | 1,919  |       |   |   | 101              |   |   |   | 13,345 |   |
| Relocation      and other closing costs            |   |             | 241    |   |                |   | 731    |       |   |   | 528              |   |   |   | 1,500 |   |
| Total                                              |   | $                | 14,358 |   |                | $      | 3,611  |       |   | $      | 9,720            |   |   | $ | 27,689 |   |

|                                         |   |    |             |   |    | Costs      Accrued    |   |    |        |   |    |                  |
|----------------------------------------------|--------|---------|------------------|--------|---------|-----------------------|--------|---------|-------------|--------|---------|-----------------------|
|                                         |   |    |             |   |    | for      Quarter      |   |    |        |   |    | Accrued               |
|                                         |   |    | Balance      at  |   |    | Ended                 |   |    |        |   |    | as      of            |
|                                         |   |    | February      2, |   |    | May      3,           |   |    | Payments/   |   |    | May      3,           |
| (In      thousands)                          |   |    | 2008             |   |    | 2008                  |   |    | Settlements |   |    | 2008                  |
|                                         |   |    |             |   |    |                  |   |    |        |   |    |                  |
| Severance,      retention, and related costs |   |  $ | 2,688            |   |  $ |    389 |   |  $ | (2,343)     |   |  $ |    734 |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Balance     |    |   |                   |   |   |       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | May      3, |    |   | Fair Value Method Used |   |
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2008        |    |   | Level 2                |   |   | Level 3(1) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |        |    |   |                   |   |   |       |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |        |    |   |                   |   |   |       |   |
| Available-for-sale      securities(2)                                                                                    |   | $           | 6,456   |   |                   | $      | 6,456  |       |   |   |   |
| Certificates      and retained interests in securitized receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        | 116,119 |   |                   |   |   |       |   | $ | 116,119 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |        |    |   |                   |   |   |       |   |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        |    |   |                   |   |   |       |   |   |   |   |
| Servicing      liability                                                                                                 |   |        | 3,079   |   |                   |   |   |       |   |   | 3,079 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| (1) Fair      value is estimated based on internally-developed models or methodologies      utilizing significant inputs that are unobservable from objective      sources.                                                                                                                                                                                                                                                                                                                                                                        |   |
| (2) Unrealized      gains and losses on our available-for-sale securities are included in      stockholders’ equity until realized and realized gains and losses are      recognized in income when the securities are sold.                                                                                                                                                                                                                                                                                                                 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Retained  |    |   | Servicing |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|-----------|--------|
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Interests |    |   | Liability |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      |    |   |      |   |
| Balance,      February 2,      2008                                                                                                                                  |   | $         | 115,912 |   |      | $      | 3,038 |   |
| Additions      to I/O strip and servicing      liability                                                                                                             |   |      | 10,046  |   |      |   | 1,298 |   |
| Net      additions to other retained      interests                                                                                                                  |   |      | 549     |   |      |   |   |   |
| Reductions      and maturities of QSPE      certificates                                                                                                             |   |      | (750    | )      |      |   |   |   |
| Amortization      and valuation adjustments to I/O strip and servicing    liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |      | (9,638  | )      |      |   | (1,257 | ) |
| Balance,      May 3,      2008                                                                                                                                       |   | $         | 116,119 |   |      | $      | 3,079 |   |

----

| ·   | The      measurement of additional assets acquired and liabilities assumed at fair      value as of the acquisition date; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Re-measurement      of liabilities related to contingent consideration at fair value in      periods subsequent to acquisition; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      expensing in pre-acquisition periods of acquisition-related costs incurred      by the acquirer; and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | The      initial measurement of non-controlling interests in subsidiaries at fair      value and classification of the interest as a separate component of      equity. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Our      business is dependent upon our ability to accurately predict rapidly      changing fashion trends, customer preferences, and other fashion-related      factors, which we may not be able to successfully accomplish in the      future. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      continuing slowdown in the United States economy, an uncertain economic      outlook, and escalating energy costs could lead to reduced consumer demand      for our products in the future. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      women’s specialty retail apparel and direct-to-consumer markets are highly      competitive and we may be unable to compete successfully against existing      or future competitors. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      cannot assure the successful consummation of our expected sale of our      non-core misses apparel catalogtitles. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | We      cannot assure the successful implementation of our business plan for our      LANE BRYANT WOMAN catalog or the realization of our anticipated benefits      from our re-launch of the LANE BRYANT credit card  program. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We      cannot assure the successful implementation of our business plans for our      outlet store distribution channel and expansion of our CACIQUE®      product line through new storeformats. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      cannot assure the successful implementation of our business plan for      increased profitability and growth in our Retail Stores or      Direct-to-Consumer segments.  Recent changes in management may      fail to achieve improvement in our operating  results. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      cannot assure the successful implementation of our planned cost reduction      and capital budget reduction plans; the effective implementation of our      plans for consolidation of our CATHERINES brand, a new organizational      structure; and enhancements in our merchandise and marketing; and we      cannot assure the realization of our anticipated annualized expense      savings from our restructuring announced in February  2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      business plan is largely dependent upon continued growth in the plus-size      women’s apparel market, which may notoccur. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      depend on key personnel, particularly our Chief Executive Officer, Dorrit      J. Bern, and we may not be able to retain or replace these employees or      recruit additional qualifiedpersonnel. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      depend on our distribution and fulfillment centers and third-party freight      consolidators and service providers, and could incur significantly higher      costs and longer lead times associated with distributing our products to      our stores and shipping our products to our E-commerce and catalog      customers if operations at any of these locations were to be disrupted for      any reason. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      depend on the availability of credit for our working capital needs,      including credit we receive from our suppliers and their agents, and on      our credit card securitization facilities.  If we were unable to      obtain sufficient financing at an affordable cost, our ability to      merchandise our stores, E-commerce, or catalog businesses would be      adversely affected. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Natural      disasters, as well as war, acts of terrorism, or other armed conflict, or      the threat of any such event may negatively impact availability of      merchandise and customer traffic to our stores, or otherwise adversely      affect our business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      rely significantly on foreign sources of production and face a variety of      risks generally associated with doing business in foreign markets and      importing merchandise from abroad.  Such risks include (but are not      necessarily limited to) political instability; imposition of, or changes      in, duties or quotas; trade restrictions; increased security requirements      applicable to imports; delays in shipping; increased costs of      transportation; and issues relating to compliance with domestic or      international labor standards. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      Retail Stores and Direct-to-Consumer segments experience seasonal      fluctuations in net sales and operating income.  Any decrease in      sales or margins during our peak sales periods, or in the availability of      working capital during the months preceding such periods, could have a      material adverse effect on our business.  In addition, extreme or      unseasonable weather conditions may have a negative impact on our      sales. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may be unable to obtain adequate insurance for our operations at a      reasonable cost. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | We      may be unable to protect our trademarks and other intellectual property      rights, which are important to our success and our competitive      position. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may be unable to hire and retain a sufficient number of suitable sales      associates at our stores.  In addition, we are subject to the      Fair Labor Standards Act and various state and Federal laws and      regulations governing such matters as minimum wages, exempt status      classification, overtime, and employee benefits.  Changes in      Federal or state laws or regulations regarding minimum wages or other      employee benefits could cause us to incur additional wage and benefit      costs, which could adversely affect our results of    operations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      manufacturers may be unable to manufacture and deliver merchandise to us      in a timely manner or to meet our quality  standards. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      Retail Stores segment sales are dependent upon a high volume of traffic in      the strip centers and malls in which our stores are located, and our      future retail store growth is dependent upon the availability of suitable      locations for new stores. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Inadequate      systems capacity, a disruption or slowdown in telecommunications services,      changes in technology, changes in government regulations, systems issues,      security breaches, a failure to integrate order management systems, or      customer privacy issues could result in reduced sales or increases in      operating expenses as a result of our efforts or our inability to remedy      such issues. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Successful      operation of our E-commerce websites and our catalog business is dependent      on our ability to maintain efficient and uninterrupted customer service      and fulfillment operations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may be unable to manage significant increases in certain costs vital to      catalog operations, including postage, paper, and acquisition of      prospects, which could adversely affect our results of      operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Response      rates to our catalogs and access to new customers could decline, which      would adversely affect our net sales and results of      operations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      may be unable to successfully implement our plan to improve merchandise      assortments in our Retail Stores or Direct-to-Consumer      segments. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      make certain significant assumptions, estimates, and projections related      to the useful lives of our property, plant, and equipment and the      valuation of goodwill and other intangible assets related to      acquisitions.  The carrying amount and/or useful life of these      assets are subject to periodic and/or annual valuation tests for      impairment.  Impairment results when the carrying value of an      asset exceeds the undiscounted (or for goodwill and indefinite-lived      intangible assets the discounted) future cash flows associated with the      asset.  If actual experience were to differ materially from the      assumptions, estimates, and projections used to determine useful lives or      the valuation of property, plant, equipment, or intangible assets, a      write-down for impairment of the carrying value of the assets, or      acceleration of depreciation or amortization of the assets, could      result.  Such a write-down or acceleration of depreciation or      amortization could have an adverse impact on our reported results of      operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes      to existing accounting rules or the adoption of new rules could have an      adverse impact on our reported results of  operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pursuant      to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to      include our assessment of the effectiveness of our internal control over      financial reporting in our annual reports.  Our independent      registered public accounting firm is also required to report on whether or      not they believe that we maintained, in all material respects, effective      internal control over financial reporting.  If we are unable to      maintain effective internal control over financial reporting we could be      subject to regulatory sanctions and a possible loss of public confidence      in the reliability of our financial reporting.  Such a failure      could result in our inability to provide timely and/or reliable financial      information and could adversely affect our  business. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      holders of our 1.125% Senior Convertible Notes due May 1, 2014 (the      “1.125% Notes”) could require us to repurchase the principal amount of the      notes for cash before maturity of the notes under certain      circumstances.  Such a repurchase would require significant      amounts of cash and could adversely affect our financial      condition. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

OVERVIEW

----

----

|                                                                 |   |                    |   |   | Percentage  |   |
|----------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------|--------|
|                                                                 |   | Thirteen Weeks Ended(1) |   |   | Change      |   |
|                                                                 |   | May      3,             |   |   | May      5, |   |   | From      Prior |   |
|                                                                 |   | 2008                    |   |   | 2007        |   |   | Period |   |
|                                                                 |   |                    |   |   |        |   |   |   |   |
| Net      sales                                                       |   |                    | 100.0  | %      |        |   | 100.0 | % |   |   | (7.9 | )% |
| Cost      of goods sold, buying, catalog, and occupancyexpenses |   |                    | 69.7   |   |        |   | 67.9 |   |   |   | (5.5 | ) |
| Selling,      general, and administrative expenses                   |   |                    | 29.1   |   |        |   | 25.9 |   |   |   | 3.7 |   |
| Restructuring      charges                                           |   |                    | 0.6    |   |        |   | 0.0 |   |   |   | – |   |
| Income      from operations                                          |   |                    | 0.6    |   |        |   | 6.2 |   |   |   | (91.3 | ) |
| Other      income                                                    |   |                    | 0.1    |   |        |   | 0.2 |   |   |   | (61.3 | ) |
| Interest      expense                                                |   |                    | 0.4    |   |        |   | 0.5 |   |   |   | (27.4 | ) |
| Income      tax provision                                            |   |                    | 0.2    |   |        |   | 2.1 |   |   |   | (91.7 | ) |
| Income      from continuing operations                               |   |                    | 0.1    |   |        |   | 3.8 |   |   |   | (97.5 | ) |
| Loss      from discontinued operations, net of tax                   |   |                    | (5.5   | )      |        |   | 0.0 |   |   |   | – |   |
| Net      income (loss)                                               |   |                    | (5.4   | )      |        |   | 3.8 |   |   |   | (231.0 | ) |
| ____________________                                                 |   |
| (1)       Results may not add due to rounding.                  |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Thirteen Weeks Ended |             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | May      3,          |             |   | May      5, |   |
| (In      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008                 |             |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |             |   |   |   |
| Net      sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |             |   |   |   |
| FASHION      BUG                                                                                                                                      |   | $                    | 222.3            |   |   | $ | 257.0 |   |
| LANE      BRYANT                                                                                                                                      |   |                 | 298.3            |   |   |   | 323.2 |   |
| CATHERINES                                                                                                                                            |   |                 | 86.8             |   |   |   | 100.8 |   |
| Other      retail stores(1)                                                                                                                           |   |                 | 6.0              |   |   |   | 4.8 |   |
| Total      Retail Stores      segment                                                                                                                 |   |                 | 613.4            |   |   |   | 685.8 |   |
| Total      Direct-to-Consumer      segment                                                                                                            |   |                 | 26.9             |   |   |   | 10.3 |   |
| Corporate      and other(2)                                                                                                                           |   |                 | 1.0              |   |   |   | 0.5 |   |
| Total      net      sales                                                                                                                             |   | $                    | 641.3            |   |   | $ | 696.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |             |   |   |   |   |   |
| Income      from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |             |   |   |   |   |   |
| FASHION      BUG                                                                                                                                      |   | $                    | 6.9              |   |   | $ | 19.1 |   |
| LANE      BRYANT                                                                                                                                      |   |                 | 29.6             |   |   |   | 39.5 |   |
| CATHERINES                                                                                                                                            |   |                 | 7.1              |   |   |   | 16.9 |   |
| Other      retail stores(1)                                                                                                                           |   |                 |   (0.6 | ) |   |   | (0.1 | ) |
| Total      Retail Stores      segment                                                                                                                 |   |                 | 43.0             |   |   |   | 75.4 |   |
| Total      Direct-to-Consumer      segment                                                                                                            |   |                 | (4.2             | ) |   |   | (0.8 | ) |
| Corporate      and      other                                                                                                                         |   |                 | (35.0            | ) |   |   | (31.2 | ) |
| Total      income from      operations                                                                                                                |   | $                    | 3.8              |   |   | $ | 43.4 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (1)       Includes PETITE SOPHISTICATE stores, which began operations in October      2007, and PETITE SOPHISTICATE OUTLET stores, which began operations in      September 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (2)       Primarily revenue related to loyalty card fees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Thirteen Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | May      3,          |   |   | May      5, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2008                 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |
| Retail      Stores segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |
| Increase      (decrease) in comparable store sales(1)      :                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |   |   |   |   |
| Consolidated      retail stores                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | (13    | )% |   |   | 0 | % |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (12    | ) |   |   | (2 | ) |
| LANE      BRYANT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (12    | ) |   |   | 0 |   |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | (16    | ) |   |   | 5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |   |   |
| Sales      from new stores as a percentage of total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 |   |   |   |   |   |   |
| consolidated prior-period      sales(2):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |   |   |   |   |   |   |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | 1      |   |   |   | 1 |   |
| LANE      BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | 4      |   |   |   | 10 |   |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | 1      |   |   |   | 1 |   |
| Other      retail stores(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 | 0      |   |   |   | 1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |   |   |
| Prior-period      sales from closed stores as a percentage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
| of total consolidated      prior-period sales:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 |   |   |   |   |   |   |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (1     | ) |   |   | (1 | ) |
| LANE      BRYANT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (3     | ) |   |   | (3 | ) |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | (0     | ) |   |   | (0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |   |   |
| Increase/(decrease)      in Retail Stores segment sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | (11    | ) |   |   | 9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |   |   |
| Direct-to-Consumer      segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |   |   |   |   |   |   |
| Increase      in Direct-to-Consumer segment sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | 162    | (5) |   |   | 15 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |   |   |   |   |   |   |
| Increase/(decrease)      in consolidated total net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | (8     | ) |   |   | 9 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| (1)       “Comparable store sales” is not a measure that has been defined under      generally accepted accounting principles.  The method of calculating      comparable store sales varies across the retail industry and, therefore,      our calculation of comparable store sales is not necessarily comparable to      similarly-titled measures reported by other companies.  We define      comparable store sales as sales from stores operating in both the current      and prior-year periods.  New stores are added to the comparable store      sales base 13 months after their open date.  Sales from stores that      are relocated within the same mall or strip-center, remodeled, or have a      legal square footage change of less than 20% are included in the      calculation of comparable store sales.  Sales from stores that are      relocated outside the existing mall or strip-center, or have a legal      square footage change of 20% or more, are excluded from the calculation of      comparable store sales until 13 months after the relocated store is      opened.  Stores that are temporarily closed for a period of 4 weeks      or more are excluded from the calculation of comparable store sales for      the applicable periods in the year of closure and the subsequent      year.  Non-store sales, such as catalog and internet sales, are      excluded from the calculation of comparable store sales. |   |
| (2)       Includes incremental Retail Stores segment E-commerce    sales.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| (3)       Includes LANE BRYANT OUTLET stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| (4)       Includes PETITE SOPHISTICATE and PETITE SOPHISTICATE OUTLET      stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (5)       Primarily due to LANE BRYANT CATALOG which began operations in the Fiscal      2008 Fourth Quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |

----

|                                                                                                                                                               |   | FASHION |    |   | LANE   |   |    |       |   |   |     |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|--------|--------|---------|------------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                                                                                               |   | BUG     |    |   | BRYANT |   |    | CATHERINES |   |   | Other(1) |   |   | Total  |   |
|                                                                                                                                                               |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |
| Fiscal      2009 Year-to-Date:                                                                                                                                     |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |
| Stores      at February 2, 2008                                                                                                                                    |   |    | 989     |   |   |   | 896     |       |   |   | 468      |   |   |   | 56     |   |   |   | 2,409 |   |
|                                                                                                                                                               |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Stores      opened                                                                                                                                                 |   |    | 5       |   |   |   | 15      | (2)        |   |   | 5        |   |   |   | 2      |   |   |   | 27 |   |
| Stores      closed(3)                                                                                                                                              |   |    | (20     | )      |   |   | (6      | )          |   |   | (3       | )      |   |   | (0     | ) |   |   | (29 | ) |
| Net      change in stores                                                                                                                                          |   |    | (15     | )      |   |   |  9 |       |   |   | 2        |   |   |   | 2      |   |   |   |   (2 | ) |
|                                                                                                                                                               |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Stores      at May 3, 2008                                                                                                                                         |   |    | 974     |   |   |   | 905     |       |   |   | 470      |   |   |   | 58     |   |   |   | 2,407 |   |
|                                                                                                                                                               |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Stores      relocated during period                                                                                                                                |   |    | 7       |   |   |   | 13      |       |   |   | 5        |   |   |   | 0      |   |   |   | 25 |   |
|                                                                                                                                                               |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Fiscal      2009:                                                                                                                                                  |   |    |    |   |   |   |    |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Planned      store openings                                                                                                                                        |   |    | 6       |   |   |   | 31-35   | (4)        |   |   | 6-7      |   |   |   | 4      | (5) |   |   | 47-52 |   |
| Planned      store closings(6)                                                                                                                                     |   |    | 105-108 |   |   |   | 39-46   |       |   |   | 12       |   |   |   | 4      | (7) |   |   | 160-170 |   |
| Planned      store relocations                                                                                                                                     |   |    | 9-12    |   |   |   | 38-41   | (8)        |   |   | 4-5      |   |   |   | 0      |   |   |   | 51-58 |   |
| ____________________                                                                                                                                               |   |
| (1)       Includes PETITE SOPHISTICATE OUTLET stores.                                                                                                         |   |
| (2)       Includes 2 LANE BRYANT OUTLET stores.                                                                                                               |   |
| (3)       Includes 15 FASHION BUG, 3 CATHERINES and 5 LANE BRYANT stores closed as      part of the streamlining initiatives announced in February      2008. |   |
| (4)       Includes approximately 11-13 LANE BRYANT intimate apparel side-by-side      stores and 6-8 LANE BRYANT OUTLET stores.                               |   |
| (5)       PETITE SOPHISTICATE OUTLET stores.                                                                                                                  |   |
| (6)       Includes approximately 150 under-performing stores to be closed as part of      the streamlining initiatives announced in February 2008.            |   |
| (7)       PETITE SOPHISTICATE stores.                                                                                                                         |   |
| (8)       Includes approximately 13-16 conversions to LANE BRYANT intimate apparel      side-by-side stores.                                                  |   |

----

----

----

|                                |   | May      3, |   |   | February      2, |   |
|-------------------------------------|--------|-------------|--------|--------|------------------|--------|
| (Dollars      in millions)          |   | 2008        |   |   | 2008             |   |
|                                |   |        |   |   |             |   |
| Cash      and cash equivalents      |   | $           | 79.2   |   |             | $      | 61.3 |   |
| Available-for-sale      securities  |   |        | 6.5    |   |             |   | 13.4 |   |
| Working      capital                |   | $           | 475.5  |   |             | $      | 504.9 |   |
| Current      ratio                  |   |        | 2.3    |   |             |   | 2.5 |   |
| Long-term      debt to equity ratio |   |        | 45.3   | %      |             |   | 41.9 | % |

----

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| (Dollars      in millions)                                                                                                                                                                                                                                                                                                                                                                                  | Series 1999-2          | Series 2002-1       | Series 2004-VFC        | Series 2004-1       | 2005-RPA(1)            | Series 2007-1       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|---------------------|------------------------|---------------------|------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                        |                   |                |                   |                |                   |                |
| Date      of      facility                                                                                                                                                                                                                                      | May      1999          | November      2002  | January      2004      | August      2004    | May      2005          | October      2007   |
| Type      of      facility                                                                                                                                                                                                                                      | Conduit                | Term                | Conduit                | Term                | Conduit                | Term                |
| Maximum      funding                                                                                                                                                                                                                                                                                                                                                                                        | $50.0                  | $100.0              | $50.0                  | $180.0              | $55.0                  | $320.0              |
| Funding      as of                                                                                                                                                                                                                                                                                                                                                                                          |                   |                |                   |                |                   |                |
| May 3,      2008                                                                                                                                                                                                                                                          | $32.7                  | $10.5               | $0.0                   | $180.0              | $41.5                  | $320.0              |
| First      scheduled                                                                                                                                                                                                                                                                                                                                                                                        |                   |                |                   |                |                   |                |
| principalpayment                                                                                                                                                                                                                                                                                                                                                                                            | Not      applicable    | August      2007    | Not      applicable    | April      2009     | Not      applicable    | April      2012     |
| Expected      final                                                                                                                                                                                                                                                                                                                                                                                         |                   |                |                   |                |                   |                |
| principalpayment                                                                                                                                                                                                                                                                                                                                                                                            | Not      applicable(2) | May      2008       | Not      applicable(2) | March      2010     | Not      applicable(2) | March      2013     |
| Next      renewal      date                                                                                                                                                                                                                                     | July      2008         | Not      applicable | January      2009      | Not      applicable | May      2009          | Not      applicable |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                        |
| (1)       Receivables Purchase Agreement (for the Crosstown Traders catalog      proprietary credit card receivables program).                                                                                                                                                                                                                                                                         |
| (2)       Series 1999-2 and Series 2004-VFC have scheduled final payment dates that      occur in the twelfth month following the month in which the series begins      amortizing.  These series and 2005-RPA generally begin      amortizing 364 days after the start of the purchase commitment by the      series purchaser currently in effect after giving effect to any      renewal. |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Thirteen      Weeks Ended |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | May      3,               |      |   | May      5, |   |
| (In      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008                      |      |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |   |   |   |
| Net      securitization excess spread      revenues                                                                                                                        |   | $                         | 23.3      |   |   | $ | 15.5 |   |
| Net      additions to the I/O strip and servicing      liability                                                                                                           |   |                      | 0.3       |   |   |   | 0.3 |   |
| Other      credit card revenues, net(1)                                                                                                                                    |   |                      |  3.3 |   |   |   | 3.3 |   |
| Total      credit card      revenues                                                                                                                                       |   |                      | 26.9      |   |   |   | 19.1 |   |
| Less      total credit card program      expenses                                                                                                                          |   |                      | 17.9      |   |   |   | 11.9 |   |
| Total      credit      contribution                                                                                                                                        |   | $                         |  9.0 |   |   | $ |  7.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |   |   |   |   |   |
| Average      managed receivables      outstanding                                                                                                                          |   | $                         | 585.4     |   |   | $ | 356.3 |   |
| Ending      managed receivables      outstanding                                                                                                                           |   | $                         | 596.1     |   |   | $ | 366.8 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|         (1)  Excludes inter-company merchant fees between our credit      entities and our retail entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |      |   |            |   |    | Total                 |   |   | Maximum          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-----------------|--------|---------|-----------------------|--------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |      |   |            |   |    | Number                |   |   | Number      of   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |      |   |            |   |    | of      Shares        |   |   | Shares      that |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |      |   |            |   |    | Purchased      as     |   |   | May      Yet be  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Total          |      |   |            |   |    | Part      of Publicly |   |   | Purchased        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Number         |      |   | Average         |   |    | Announced             |   |   | Under      the   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | of      Shares |      |   | Price      Paid |   |    | Plans      or         |   |   | Plans      or    |   |
| Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Purchased      |      |   | per Share       |   |    | Programs(3)(4)        |   |   | Programs(3)(4)   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |      |   |            |   |    |                  |   |   |             |   |
| February      3, 2008 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           |      |   |            |   |    |                  |   |   |             |   |
| March      1, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 683,235   | (1)    |            | $      | 5.83    |                  |   |   | 648,600          | (3)    |   |   |   |
| March      2, 2008 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |      |   |            |   |    |                  |   |   |             |   |   |   |   |
| April      5, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 1,419,475 | (2)    |            |   | 5.28    |                  |   |   | 1,356,367        | (3)(4) |   |   |   |
| April      6, 2008 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |      |   |            |   |    |                  |   |   |             |   |   |   |   |
| May      3, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |           | 0         |   |            |   | – |                  |   |   | 0                |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           | 2,102,710 |   |            | $      | 5.47    |                  |   |   | 2,004,967        |   |   |   | (3)(4)  |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| (1)       Includes 34,635 shares ($5.99 average price paid per share) withheld for      the payment of payroll taxes on employee stock awards that vested during      the period and 648,600 shares ($5.82 average price paid per share)      purchased in the open market (see Note (3) below).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| (2)       Includes 63,108 shares ($4.71 average price paid per share) withheld for      the payment of payroll taxes on employee stock awards that vested during      the period and 1,356,367 shares ($5.30 average price paid per share)      purchased in the open market (see Notes (3) and (4)below).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|         (3)  In Fiscal 1998 we publicly announced that our Board of Directors      granted authority to repurchase up to 10,000,000 shares of our common      stock. In Fiscal 2000 we publicly announced that our Board of      Directors granted authority to repurchase up to an additional 10,000,000      shares of our common stock. In Fiscal 2003 the Board of Directors      granted an additional authorization to repurchase 6,350,662 shares of      common stock issued to Limited Brands, Inc. (“Limited Brands”) in      connection with our acquisition of LANE BRYANT. From Fiscal 1998      through February 2, 2008 we repurchased a total of 24,851,101 shares of      stock, which included shares purchased on the open market as well as      shares repurchased from Limited Brands. During the period from      February 3, 2008 through May 3, 2008 we repurchased a total of 1,499,561      shares of stock ($5.56 average price paid per share) in the open market      under these programs. As of May 3, 2008, no shares remain available      for repurchase under these programs. |   |
|         (4)  On November 8, 2007 we publicly announced that our Board of      Directors granted authority to repurchase shares of our common stock up to      an aggregate value of $200 million. Shares may be purchased in the      open market or through privately-negotiated transactions, as market      conditions allow. As of February 2, 2008 no shares had been purchased      under this plan. During the period from February 3, 2008 through May      3, 2008 we repurchased a total of 505,406 shares of stock ($5.21 average      price paid per share) in the open market under this program. As of      May 3, 2008, $197,364,592 was available for future repurchases under this      program. This repurchase program has no expiration    date.                                                                                                                                                                                                                                                                                                                                                          |   |

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| 2.1  | Stock      Purchase Agreement dated May 19, 2005 by and among Chestnut Acquisition      Sub, Inc., Crosstown Traders, Inc., the Securityholders of Crosstown      Traders, Inc. whose names are set forth on the signature pages thereto,      and J.P. Morgan Partners (BHCA), L.P., as the Sellers’ Representative,      incorporated by reference to Form 8-K of the Registrant dated June 2,      2005, filed on June 8, 2005. (Exhibit 2.1).  |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1  | Restated      Articles of Incorporation, incorporated by reference to Form 10-K of the      Registrant for the fiscal year ended January 29, 1994 (File No. 000-07258,      Exhibit 3.1).                                                                                                                                                                                                                                                                |
| 3.2  | Bylaws,      as Amended and Restated.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1  | Indenture      between the Company and Wells Fargo Bank, National Association, dated as      of April 30, 2007, incorporated by reference to Form 8-K of the Registrant      dated April 30, 2007, filed on May 3, 2007.  (Exhibit      4.1).                                                                                                                                                                                                  |
| 4.2  | Form      of 1.125% Senior Convertible Note due 2012 (included in Exhibit      4.1).                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1 | Form      of Time-Based Restricted Stock Units Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.1).                                                                                                                                                                                                                                   |
| 10.2 | Form      of Time-Based Stock Appreciation Rights Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.2).                                                                                                                                                                                                                                |
| 10.3 | Form      of Time-Based Restricted Stock Units Agreement for Other Executive      Officers, incorporated by reference to Form 8-K of the Registrant dated      April 1, 2008, filed on April 7, 2008.  (Exhibit      10.3).                                                                                                                                                                                                                    |
| 10.4 | Form      of Time-Based Stock Appreciation Rights Agreement for Other Executive      Officers, incorporated by reference to Form 8-K of the Registrant dated      April 1, 2008, filed on April 7, 2008.  (Exhibit      10.4).                                                                                                                                                                                                                 |
| 10.5 | Form      of Performance-Based Restricted Stock Units Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.5).                                                                                                                                                                                                                            |
| 10.6 | Form      of Performance-Based Stock Appreciation Rights Agreement for Dorrit J.      Bern, incorporated by reference to Form 8-K of the Registrant dated April      1, 2008, filed on April 7, 2008.  (Exhibit 10.6).                                                                                                                                                                                                                         |
| 10.7 | Form      of Additional Time-Based Restricted Stock Units Agreement for Other      Executive Officers, incorporated by reference to Form 8-K of the      Registrant dated April 1, 2008, filed on April 7,      2008.  (Exhibit 10.7).                                                                                                                                                                                                         |
| 10.8 | Form      of Additional Time-Based Stock Appreciation Rights Agreement for Other      Executive Officers, incorporated by reference to Form 8-K of the      Registrant dated April 1, 2008, filed on April 7,      2008.  (Exhibit 10.8).                                                                                                                                                                                                      |
| 10.9 | Form      of Performance-Based EBITDA Stock Appreciation Rights Agreement,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit  10.9).                                                                                                                                                                                                                                         |

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| 10.10 | Amendment,      dated as of May 15, 2008, to Amended and Restated Receivables Purchase      Agreement dated as of June 2, 2005, by and among Catalog Receivables LLC      as seller; Spirit of America, Inc. as servicer; Sheffield Receivables      Corporation as Purchaser; and Barclays Bank PLC as administrator for the      Purchaser.                                                                  |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.11 | Letter      Agreement, dated as of May 16, 2008, to Certificate Purchase Agreement,      dated as of May 28, 1999, as amended, among Charming Shoppes Receivables      Corp., as Seller and Class B Purchaser; Spirit of America, Inc., as      Servicer; Clipper Receivables Company, LLC, as Class A Purchaser; and      State Street Global Markets, LLC, as Administrator for the Class A      Purchaser.  |
| 10.12 | Charming      Shoppes, Inc. 2003 Non-Employee Directors Compensation Plan, Amended and      Restated, Effective May 7, 2008.                                                                                                                                                                                                                                                                                   |
| 10.13 | Charming      Shoppes, Inc. Annual Incentive Program – Fiscal 2009, as amended and      restated March 27, 2008.                                                                                                                                                                                                                                                                                         |
| 31.1  | Certification      by Principal Executive Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                              |
| 31.2  | Certification      by Principal Financial Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                              |
| 32    | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                   |

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|                    | CHARMING SHOPPES,      INC.                |
|-------------------------|--------------------------------------------|
|                    | (Registrant)                               |
|                    |                                       |
|                    |                                       |
|                    |                                       |
| Date:      June 6, 2008 | /S/ DORRIT J.      BERN                    |
|                    | Dorrit      J. Bern                        |
|                    | Chairman      of the Board                 |
|                    | President      and Chief Executive Officer |
|                    |                                       |
|                    |                                       |
|                    |                                       |
| Date:      June 6, 2008 | /S/ ERIC M.      SPECTER                   |
|                    | Eric      M. Specter                       |
|                    | Executive      Vice President              |
|                    | Chief      Financial Officer               |

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| Exhibit      No. | Item                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.1              | Stock      Purchase Agreement dated May 19, 2005 by and among Chestnut Acquisition      Sub, Inc., Crosstown Traders, Inc., the Securityholders of Crosstown      Traders, Inc. whose names are set forth on the signature pages thereto,      and J.P. Morgan Partners (BHCA), L.P., as the Sellers’ Representative,      incorporated by reference to Form 8-K of the Registrant dated June 2,      2005, filed on June 8, 2005. (Exhibit 2.1).  |
| 3.1              | Restated      Articles of Incorporation, incorporated by reference to Form 10-K of the      Registrant for the fiscal year ended January 29, 1994 (File No. 000-07258,      Exhibit 3.1).                                                                                                                                                                                                                                                                     |
| 3.2              | Bylaws,      as Amended and Restated.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1              | Indenture      between the Company and Wells Fargo Bank, National Association, dated as      of April 30, 2007, incorporated by reference to Form 8-K of the Registrant      dated April 30, 2007, filed on May 3, 2007.  (Exhibit      4.1).                                                                                                                                                                                                  |
| 4.2              | Form      of 1.125% Senior Convertible Note due 2012 (included in Exhibit      4.1).                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1             | Form      of Time-Based Restricted Stock Units Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.1).                                                                                                                                                                                                                                   |
| 10.2             | Form      of Time-Based Stock Appreciation Rights Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.2).                                                                                                                                                                                                                                |
| 10.3             | Form      of Time-Based Restricted Stock Units Agreement for Other Executive      Officers, incorporated by reference to Form 8-K of the Registrant dated      April 1, 2008, filed on April 7, 2008.  (Exhibit      10.3).                                                                                                                                                                                                                    |
| 10.4             | Form      of Time-Based Stock Appreciation Rights Agreement for Other Executive      Officers, incorporated by reference to Form 8-K of the Registrant dated      April 1, 2008, filed on April 7, 2008.  (Exhibit      10.4).                                                                                                                                                                                                                 |
| 10.5             | Form      of Performance-Based Restricted Stock Units Agreement for Dorrit J. Bern,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit 10.5).                                                                                                                                                                                                                            |
| 10.6             | Form      of Performance-Based Stock Appreciation Rights Agreement for Dorrit J.      Bern, incorporated by reference to Form 8-K of the Registrant dated April      1, 2008, filed on April 7, 2008.  (Exhibit 10.6).                                                                                                                                                                                                                         |
| 10.7             | Form      of Additional Time-Based Restricted Stock Units Agreement for Other      Executive Officers, incorporated by reference to Form 8-K of the      Registrant dated April 1, 2008, filed on April 7,      2008.  (Exhibit 10.7).                                                                                                                                                                                                         |
| 10.8             | Form      of Additional Time-Based Stock Appreciation Rights Agreement for Other      Executive Officers, incorporated by reference to Form 8-K of the      Registrant dated April 1, 2008, filed on April 7,      2008.  (Exhibit 10.8).                                                                                                                                                                                                      |
| 10.9             | Form      of Performance-Based EBITDA Stock Appreciation Rights Agreement,      incorporated by reference to Form 8-K of the Registrant dated April 1,      2008, filed on April 7, 2008.  (Exhibit  10.9).                                                                                                                                                                                                                                         |

----

| 10.10 | Amendment,      dated as of May 15, 2008, to Amended and Restated Receivables Purchase      Agreement dated as of June 2, 2005, by and among Catalog Receivables LLC      as seller; Spirit of America, Inc. as servicer; Sheffield Receivables      Corporation as Purchaser; and Barclays Bank PLC as administrator for the      Purchaser.                                                                  |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.11 | Letter      Agreement, dated as of May 16, 2008, to Certificate Purchase Agreement,      dated as of May 28, 1999, as amended, among Charming Shoppes Receivables      Corp., as Seller and Class B Purchaser; Spirit of America, Inc., as      Servicer; Clipper Receivables Company, LLC, as Class A Purchaser; and      State Street Global Markets, LLC, as Administrator for the Class A      Purchaser.  |
| 10.12 | Charming      Shoppes, Inc. 2003 Non-Employee Directors Compensation Plan, Amended and      Restated, Effective May 7, 2008.                                                                                                                                                                                                                                                                                   |
| 10.13 | Charming      Shoppes, Inc. Annual Incentive Program – Fiscal 2009, as amended and      restated March 27, 2008.                                                                                                                                                                                                                                                                                         |
| 31.1  | Certification      by Principal Executive Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                              |
| 31.2  | Certification      by Principal Financial Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                              |
| 32    | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                   |

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