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

|   | 3750 STATE ROAD, 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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Table of Contents

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Page   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| PART I.  | FINANCIAL INFORMATION                                                                                                                     | 2      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 1.  | Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Condensed Consolidated Balance Sheets (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|     | May 1, 2010 and January 30, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Thirteen weeks ended May 1, 2010 and May 2, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Condensed Consolidated Statements of Cash Flows (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Thirteen weeks ended May 1, 2010 and May 2, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 4      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 5      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 19     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Forward-looking Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 19     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Critical Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 23     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Recent Developments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 23     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Overview                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 23     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 26     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Liquidity and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 35     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 36     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 39     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Impact of Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 40     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 40     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 4.  | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 40     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| PART II. | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 41     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 1.  | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 41     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 41     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 42     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| Item 6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 42     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 44     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|     | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 45     |

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Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | May 1,      |      |   | January 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
| (In thousands, except share amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010        |      |   | 2010        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (Unaudited) |      |   |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        |      |   |        |   |
| Current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |      |   |        |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $           | 191,328   |   |        | $      | 186,580 |   |
| Available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |        | 0         |   |        |   | 200 |   |
| Accounts receivable, net of allowances of $5,964 and $5,345                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |        | 8,691     |   |        |   | 33,647 |   |
| Merchandise inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |        | 303,199   |   |        |   | 267,525 |   |
| Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        | 7,375     |   |        |   | 5,897 |   |
| Prepayments and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |        | 139,283   |   |        |   | 128,053 |   |
| Total current assets                                                                                                |   |        | 649,876   |   |        |   | 621,902 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |   |   |
| Property, equipment, and leasehold improvements – at cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |        | 1,027,569 |   |        |   | 1,026,815 |   |
| Less accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        | 731,548   |   |        |   | 721,732 |   |
| Net property, equipment, and leasehold improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |        | 296,021   |   |        |   | 305,083 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |   |   |
| Trademarks, tradenames, and internet domain names                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |        | 187,132   |   |        |   | 187,132 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        | 23,436    |   |        |   | 23,436 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        | 23,936    |   |        |   | 24,104 |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $           | 1,180,401 |   |        | $      | 1,161,657 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        |      |   |        |   |   |   |
| Current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |        |      |   |        |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $           | 143,972   |   |        | $      | 126,867 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |        | 151,568   |   |        |   | 153,175 |   |
| Current portion – long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        | 6,333     |   |        |   | 6,265 |   |
| Total current liabilities                                                                                           |   |        | 301,873   |   |        |   | 286,307 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |   |   |
| Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        | 52,557    |   |        |   | 52,683 |   |
| Other non-current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |        | 184,326   |   |        |   | 186,175 |   |
| Long-term debt, net of debt discount of $39,968 and $42,105                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |        | 172,084   |   |        |   | 171,558 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |      |   |        |   |   |   |
| Stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        |      |   |        |   |   |   |
| Common Stock $.10 par value:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        |      |   |        |   |   |   |
| Authorized – 300,000,000 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |        |      |   |        |   |   |   |
| Issued – 154,434,954 shares and 154,234,657 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        | 15,443    |   |        |   | 15,423 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        | 505,745   |   |        |   | 505,033 |   |
| Treasury stock at cost – 38,571,746 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |        | (348,241  | )      |        |   | (348,241 | ) |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |        | 296,614   |   |        |   | 292,719 |   |
| Total stockholders’ equity                                                                                    |   |        | 469,561   |   |        |   | 464,934 |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $           | 1,180,401 |   |        | $      | 1,161,657 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| See Notes to Condensed Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |

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CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                     |   | Thirteen Weeks Ended |    |
|----------------------------------------------------------|--------|----------------------|---------|
|                                                     |   | May 1,               |    |   | May 2, |   |
| (In thousands, except per share amounts)                 |   | 2010                 |    |   | 2009 |   |
|                                                     |   |                 |    |   |   |   |
| Net sales                                                |   | $                    | 504,805 |   |   | $ | 538,136 |   |
|                                                     |   |                 |    |   |   |   |   |   |
| Cost of goods sold                                       |   |                 | 228,216 |   |   |   | 250,561 |   |
| Gross profit                                             |   |                 | 276,589 |   |   |   | 287,575 |   |
|                                                     |   |                 |    |   |   |   |   |   |
| Occupancy and buying expenses                            |   |                 | 92,224  |   |   |   | 102,556 |   |
| Selling, general, and administrative expenses            |   |                 | 159,173 |   |   |   | 157,502 |   |
| Depreciation and amortization                            |   |                 | 16,811  |   |   |   | 20,082 |   |
| Restructuring and other charges                          |   |                 | 889     |   |   |   | 8,705 |   |
| Total operating expenses                                 |   |                 | 269,097 |   |   |   | 288,845 |   |
|                                                     |   |                 |    |   |   |   |   |   |
| Income/(loss) from operations                            |   |                 | 7,492   |   |   |   | (1,270 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Other income                                             |   |                 | 138     |   |   |   | 198 |   |
| Gain on repurchases of 1.125% Senior Convertible Notes   |   |                 | 0       |   |   |   | 4,251 |   |
| Interest expense                                         |   |                 | (4,474  | ) |   |   | (5,020 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Income/(loss) before income taxes                        |   |                 | 3,156   |   |   |   | (1,841 | ) |
| Income tax (benefit)/provision                           |   |                 | (739    | ) |   |   | 4,720 |   |
|                                                     |   |                 |    |   |   |   |   |   |
| Net income/(loss)                                        |   |                 | 3,895   |   |   |   | (6,561 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Other comprehensive loss, net of tax                     |   |                 |    |   |   |   |   |   |
| Unrealized losses on available-for-sale securities       |   |                 | 0       |   |   |   | (5 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Comprehensive income/(loss)                              |   | $                    | 3,895   |   |   | $ | (6,566 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Basic net income/(loss) per share                        |   | $                    | 0.03    |   |   | $ | (0.06 | ) |
|                                                     |   |                 |    |   |   |   |   |   |
| Diluted net income/(loss) per share                      |   | $                    | 0.03    |   |   | $ | (0.06 | ) |
|                                                     |   |
| See Notes to Condensed Consolidated Financial Statements |   |

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CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Thirteen Weeks Ended |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | May 1,               |    |   | May 2, |   |
| (In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2010                 |    |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |
| Operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |
| Net income/(loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                    | 3,895   |   |   | $ | (6,561 | ) |
| Adjustments to reconcile net income/(loss) to net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 |    |   |   |   |   |   |
| Depreciation and amortization                                                                                                                                 |   |                 | 17,039  |   |   |   | 20,524 |   |
| Stock-based compensation                                                                                                                                      |   |                 | 1,074   |   |   |   | 1,710 |   |
| Accretion of discount on 1.125% Senior Convertible Notes                                                                                                      |   |                 | 2,137   |   |   |   | 2,884 |   |
| Deferred income taxes                                                                                                                                         |   |                 | (1,604  | ) |   |   | 1,246 |   |
| Gain on repurchases of 1.125% Senior Convertible Notes                                                                                                        |   |                 | 0       |   |   |   | (4,251 | ) |
| Write-down of capital assets                                                                                                                                  |   |                 | 0       |   |   |   | 3,828 |   |
| Net loss from disposition of capital assets                                                                                                                   |   |                 | 538     |   |   |   | 143 |   |
| Net loss from securitization activities                                                                                                                       |   |                 | 0       |   |   |   | 1,225 |   |
| Changes in operating assets and liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    |   |   |   |   |   |
| Accounts receivable, net                                                                                                                                                          |   |                 | 24,956  |   |   |   | 25,279 |   |
| Merchandise inventories                                                                                                                                                           |   |                 | (35,674 | ) |   |   | (32,072 | ) |
| Accounts payable                                                                                                                                                                  |   |                 | 17,105  |   |   |   | 46,295 |   |
| Prepayments and other                                                                                                                                                             |   |                 | (10,853 | ) |   |   | (11,547 | ) |
| Accrued expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | (4,427  | ) |   |   | (13,464 | ) |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | 14,186  |   |   |   | 35,239 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| Investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| Investment in capital assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 | (7,763  | ) |   |   | (4,702 | ) |
| Proceeds from sales of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | 200     |   |   |   | 7,471 |   |
| (Increase)/decrease in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | 10      |   |   |   | (449 | ) |
| Net cash provided/(used) by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 | (7,553  | ) |   |   | 2,320 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| Financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| Repayments of long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | (1,543  | ) |   |   | (1,841 | ) |
| Repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 | 0       |   |   |   | (5,631 | ) |
| Net (payments)/proceeds from shares issued under employee stock plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | (342    | ) |   |   | 39 |   |
| Net cash used by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | (1,885  | ) |   |   | (7,433 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| Increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | 4,748   |   |   |   | 30,126 |   |
| Cash and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 | 186,580 |   |   |   | 93,759 |   |
| Cash and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                    | 191,328 |   |   | $ | 123,885 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |    |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |

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CHARMING SHOPPES, INC. AND SUBSIDIARIES

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|                            |   | May 1, |   |   | January 30, |   |
|---------------------------------|--------|--------|--------|--------|-------------|--------|
| (In thousands)                  |   | 2010   |   |   | 2010        |   |
|                            |   |   |   |   |        |   |
| Due from customers              |   | $      | 14,655 |   |        | $      | 38,992 |   |
| Allowance for doubtful accounts |   |   | (5,964 | )      |        |   | (5,345 | ) |
| Net accounts receivable         |   | $      | 8,691  |   |        | $      | 33,647 |   |

|                                                         |   | May 1, |    |   | January 30, |   |
|--------------------------------------------------------------|--------|--------|---------|--------|-------------|--------|
| (In thousands)                                               |   | 2010   |    |   | 2010        |   |
|                                                         |   |   |    |   |        |   |
| 1.125% Senior Convertible Notes, due May 2014                |   | $      | 189,636 |   |        | $      | 189,636 |   |
| Capital lease obligations                                    |   |   | 9,290   |   |        |   | 10,116 |   |
| 6.07% mortgage note, due October 2014                        |   |   | 9,593   |   |        |   | 9,777 |   |
| 6.53% mortgage note, due November 2012                       |   |   | 3,500   |   |        |   | 3,850 |   |
| 7.77% mortgage note, due December 2011                       |   |   | 6,366   |   |        |   | 6,549 |   |
| Total long-term debt principal                               |   |   | 218,385 |   |        |   | 219,928 |   |
| Less unamortized discount on 1.125% Senior Convertible Notes |   |   | (39,968 | )      |        |   | (42,105 | ) |
| Long-term debt – carrying value                        |   |   | 178,417 |   |        |   | 177,823 |   |
| Current portion                                              |   |   | (6,333  | )      |        |   | (6,265 | ) |
| Net long-term debt                                           |   | $      | 172,084 |   |        | $      | 171,558 |   |

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|                                                                                |   | Thirteen    |    |
|-------------------------------------------------------------------------------------|--------|-------------|---------|
|                                                                                |   | Weeks Ended |    |
|                                                                                |   | May 1,      |    |
| (Dollars in thousands)                                                              |   | 2010        |    |
|                                                                                |   |        |    |
| Total stockholders’ equity, beginning of period                               |   | $           | 464,934 |   |
| Net income                                                                          |   |        | 3,895   |   |
| Issuance of common stock (200,297 shares), net of shares withheld for payroll taxes |   |        | (342    | ) |
| Stock-based compensation                                                            |   |        | 1,074   |   |
| Total stockholders’ equity, end of period                                     |   | $           | 469,561 |   |

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| 2004 Stock Award and Incentive Plan           |   |   | 2,250,299 |   |
|-----------------------------------------------|--------|--------|-----------|--------|
| 2003 Non-Employee Directors Compensation Plan |   |   | 161,897   |   |
| 1994 Employee Stock Purchase Plan             |   |   | 522,173   |   |
| 1988 Key Employee Stock Option Plan           |   |   | 123,371   |   |

|                                                            |   |    |      |   | Average |   |   |             |   |   | Aggregate           |   |
|-----------------------------------------------------------------|--------|---------|-----------|--------|---------|--------|--------|------------------|--------|--------|---------------------|--------|
|                                                            |   | Option/ |      |   | Option/ |   |   |             |   |   | Intrinsic           |   |
|                                                            |   | SARs    |      |   | SARs    |   |   | Option/SARs      |   |   | Value(1)            |   |
|                                                            |   | Shares  |      |   | Price   |   |   | Prices per Share |   |   |  (000’s) |   |
|                                                            |   |    |      |   |    |   |   |             |   |   |                |   |   |   |   |   |   |
| Outstanding at January 30, 2010                                 |   |    | 7,076,953 |   |    | $      | 2.92   |             |   | $      | 0.99                |   | – |   | $ | 13.84 |   |   | $ | 20,421 |   |
| Granted – exercise price equal to market price            |   |    | 877,731   |   |    |   | 5.23   |             |   |   | 5.18                |   | – |   |   | 6.62 |   |   |   |   |   |
| Canceled/forfeited                                              |   |    | (481,326  | )      |    |   | 5.28   |             |   |   | 1.00                |   | – |   |   | 6.81 |   |   |   |   |   |
| Exercised                                                       |   |    | (2,399    | )      |    |   | 1.42   |             |   |   | 1.00                |   | – |   |   | 2.93 |   |   |   | 11 | (2) |
| Outstanding at May 1, 2010                                      |   |    | 7,470,959 |   |    | $      | 3.04   |             |   | $      | 0.99                |   | – |   | $ | 13.84 |   |   |   | 19,396 |   |
| Exercisable at May 1, 2010                                      |   |    | 1,453,194 |   |    | $      | 4.30   |             |   | $      | 1.00                |   | – |   | $ | 13.84 |   |   |   | 1,942 |   |
| ____________________                                            |   |
| (1)  Aggregate market value less aggregate exercise price. |   |
| (2)  As of date of exercise.                               |   |

|                                   |   | Thirteen Weeks Ended |   |
|----------------------------------------|--------|----------------------|--------|
|                                   |   | May 1,               |   |   | May 2, |   |
| (In thousands)                         |   | 2010                 |   |   | 2009 |   |
|                                   |   |                 |   |   |   |   |
| Total stock-based compensation expense |   | $                    | 1,074  |   |   | $ | 1,710 |   |

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|                             |   | Thirteen Weeks Ended |   |
|----------------------------------|--------|----------------------|--------|
|                             |   | May 1,               |   |   | May 2, |   |
| (In thousands)                   |   | 2010                 |   |   | 2009 |   |
|                             |   |                 |   |   |   |   |
| Loyalty card revenues recognized |   | $                    | 4,407  |   |   | $ | 5,019 |   |

|                                                                                                                                                                                                        |   | Thirteen Weeks Ended |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                                                                                                        |   | May 1,               |    |   | May 2, |   |
| (In thousands, except per share amounts)                                                                                                                                                                    |   | 2010                 |    |   | 2009 |   |
|                                                                                                                                                                                                        |   |                 |    |   |   |   |
| Basic weighted average common shares outstanding                                                                                                                                                            |   |                 | 116,003 |   |   |   | 115,180 |   |
| Dilutive effect of stock options, stock appreciation rights, and awards                                                                                                                                     |   |                 | 2,410   |   |   |   | 0 | (1) |
| Diluted weighted average common shares and equivalents outstanding                                                                                                                                          |   |                 | 118,413 |   |   |   | 115,180 |   |
|                                                                                                                                                                                                        |   |                 |    |   |   |   |   |   |
| Net income/(loss) used to determine basic and diluted net loss per share                                                                                                                                    |   | $                    | 3,895   |   |   | $ | (6,561 | ) |
| ____________________                                                                                                                                                                                        |   |                 |    |   |   |   |   |   |
| (1)  Stock options, stock appreciation rights (“SARs”), and awards are excluded from the computation of diluted net income/(loss) per share as their effect would have been anti-dilutive. |   |

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|                                                                                                                                                                                               |   | Thirteen Weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                                                                                                                               |   | May 1,               |   |   | May 2, |   |
| (In thousands, except per share amounts)                                                                                                                                                           |   | 2010                 |   |   | 2009 |   |
|                                                                                                                                                                                               |   |                 |   |   |   |   |
| Options/SARs with weighted average exercise price greater than market price, excluded from computation of diluted earnings per share:                                                              |   |                 |   |   |   |   |
| Number of shares                                                                                                                                                                                   |   |                 | 531    |   |   |   | 0 | (1) |
| Weighted average exercise price per share                                                                                                                                                          |   | $                    | 7.31   |   |   |   | – |   |
| ____________________                                                                                                                                                                               |   |                 |   |   |   |   |   |   |
| (1)  Stock options and stock appreciation rights (“SARs”) are excluded from the computation of diluted net income/(loss) per share as their effect would have been anti-dilutive. |   |

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|                    |   | May 1, |   |   | January 30, |   |
|-------------------------|--------|--------|--------|--------|-------------|--------|
| (In thousands)          |   | 2010   |   |   | 2010        |   |
|                    |   |   |   |   |        |   |
| Income taxes receivable |   | $      | 50,574 |   |        | $      | 50,609 |   |

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|                                                       |   | Thirteen    |    |
|------------------------------------------------------------|--------|-------------|---------|
|                                                       |   | Weeks Ended |    |
|                                                       |   | May 2,      |    |
| (In thousands)                                             |   | 2009        |    |
|                                                       |   |        |    |
| Proceeds from sales of new receivables to QSPE             |   | $           | 175,720 |   |
| Collections reinvested in revolving-period securitizations |   |        | 236,516 |   |
| Cash flows received on retained interests                  |   |        | 18,981  |   |
| Servicing fees received                                    |   |        | 2,470   |   |
| Net credit losses                                          |   |        | 11,618  |   |

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|                                                                                                                           |   | Retail |    |   | Direct-to- |   |   | Corporate |   |   |         |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|------------|--------|--------|-----------|--------|--------|--------------|--------|
| (In thousands)                                                                                                                 |   | Stores |    |   | Consumer   |   |   | and Other |   |   | Consolidated |   |
|                                                                                                                           |   |   |    |   |       |   |   |      |   |   |         |   |
| Thirteen weeks ended May 1, 2010                                                                                               |   |   |    |   |       |   |   |      |   |   |         |   |
| Net sales                                                                                                                      |   | $      | 492,074 |   |       | $      | 12,731 |      |   | $      | 0            |   |   | $ | 504,805 |   |
| Depreciation and amortization                                                                                                  |   |   | 13,119  |   |       |   | 298    |      |   |   | 3,394        |   |   |   | 16,811 |   |
| Income/(loss) from operations                                                                                                  |   |   | 27,949  |   |       |   | (1,666 | )         |   |   | (18,791      | )(1)   |   |   | 7,492 |   |
| Net interest expense and other income                                                                                          |   |   |    |   |       |   |   |      |   |   | (4,336       | )      |   |   | (4,336 | ) |
| Income tax benefit                                                                                                             |   |   |    |   |       |   |   |      |   |   | 739          |   |   |   | 739 |   |
| Net income/(loss)                                                                                                              |   |   | 27,949  |   |       |   | (1,666 | )         |   |   | (22,388      | )      |   |   | 3,895 |   |
| Capital expenditures                                                                                                           |   |   | 5,270   |   |       |   | 0      |      |   |   | 2,493        |   |   |   | 7,763 |   |
| ____________________                                                                                                           |   |   |    |   |       |   |   |      |   |   |         |   |   |   |   |   |
| (1)  Includes restructuring and other charges of $889 (see “Note 11. Restructuring and Other Charges” below). |   |

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|                                                                                                                             |   | Retail |    |   | Direct-to- |   |   | Corporate |   |   |         |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|------------|--------|--------|-----------|--------|--------|--------------|--------|
| (In thousands)                                                                                                                   |   | Stores |    |   | Consumer   |   |   | and Other |   |   | Consolidated |   |
|                                                                                                                             |   |   |    |   |       |   |   |      |   |   |         |   |
| Thirteen weeks ended May 2, 2009                                                                                                 |   |   |    |   |       |   |   |      |   |   |         |   |
| Net sales                                                                                                                        |   | $      | 518,311 |   |       | $      | 19,455 |      |   | $      | 370          | (1)    |   | $ | 538,136 |   |
| Depreciation and amortization                                                                                                    |   |   | 15,110  |   |       |   | 346    |      |   |   | 4,626        |   |   |   | 20,082 |   |
| Income/(loss) from operations                                                                                                    |   |   | 37,337  |   |       |   | (6,451 | )         |   |   | (32,156      | )(2)   |   |   | (1,270 | ) |
| Gain on repurchases of 1.125% Senior Convertible Notes                                                                           |   |   |    |   |       |   |   |      |   |   | 4,251        |   |   |   | 4,251 |   |
| Net interest expense and other income                                                                                            |   |   |    |   |       |   |   |      |   |   | (4,822       | )      |   |   | (4,822 | ) |
| Income tax provision                                                                                                             |   |   |    |   |       |   |   |      |   |   | (4,720       | )      |   |   | (4,720 | ) |
| Net income/(loss)                                                                                                                |   |   | 37,337  |   |       |   | (6,451 | )         |   |   | (37,447      | )      |   |   | (6,561 | ) |
| Capital expenditures                                                                                                             |   |   | 3,607   |   |       |   | 0      |      |   |   | 1,095        |   |   |   | 4,702 |   |
| ____________________                                                                                                             |   |   |    |   |       |   |   |      |   |   |         |   |   |   |   |   |
| (1)  Revenues related to figure magazine, which was discontinued in the Fiscal 2009 First Quarter.                          |   |
| (2)  Includes restructuring and other charges of $8,705 (see “Note 11. Restructuring and Other Charges” below). |   |

|                                                                                                                                                                                                                                                                                                                                |         |        |   |   |           |   |   |      |   |   | Total       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------|--------|--------|----------------|--------|--------|-----------|--------|--------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                |         | Costs       |   |   | Costs Incurred |   |   | Estimated |   |   | Estimated/  |   |
|                                                                                                                                                                                                                                                                                                                                |         | Incurred    |   |   | for Thirteen   |   |   | Remaining |   |   | Actual      |   |
|                                                                                                                                                                                                                                                                                                                                |         | as of       |   |   | Weeks Ended    |   |   | Costs     |   |   | Costs as of |   |
|                                                                                                                                                                                                                                                                                                                                |         | January 30, |   |   | May 1,         |   |   | To be     |   |   | May 1,      |   |
|   (In thousands)                                                                                                                                                                                                                                                                                                               |         | 2010        |   |   | 2010(1)        |   |   | Incurred  |   |   | 2010        |   |
|                                                                                                                                                                                                                                                                                                                                |         |        |   |   |           |   |   |      |   |   |        |   |
| Fiscal 2008 Announcements                                                                                                                                                                                                                                                                                                           |         |        |   |   |           |   |   |      |   |   |        |   |
| Lease termination and accretion charges                                                                                                                                                                                                                                                                                             |         | $           | 11,141 |   |           | $      | (67    | )         |   | $      | 2,135       | (2)    |   | $ | 13,209 |   |
| Severance, retention, and other costs                                                                                                                                                                                                                                                                                               |         |        | 4,963  |   |           |   | 135    |      |   |   | 29          |   |   |   | 5,127 |   |
|                                                                                                                                                                                                                                                                                                                                |         |        |   |   |           |   |   |      |   |   |        |   |   |   |   |   |
|   Fiscal 2009 Announcements                                                                                                                                                                                                                                                                                                    |         |        |   |   |           |   |   |      |   |   |        |   |   |   |   |   |
|   Closing of PETITE SOPHISTICATE OUTLET stores:                                                                                                                                                                                                                                                                                |         |        |   |   |           |   |   |      |   |   |        |   |   |   |   |   |
|   Non-cash accelerated depreciation                                                                                                                                                                                                                                                                                            |         |        | 643    |   |           |   | (31    | )         |   |   | 0           |   |   |   | 612 |   |
|   Store lease termination charges                                                                                                                                                                                                                                                                                              |         |        | 1,215  |   |           |   | 0      |      |   |   | 0           |   |   |   | 1,215 |   |
|   Other non-cash costs                                                                                                                                                                                                                                                                                                         |         |        | 195    |   |           |   | 0      |      |   |   | 0           |   |   |   | 195 |   |
|   Closing of under-performing stores:                                                                                                                                                                                                                                                                                          |    |        |   |   |           |   |   |      |   |   |        |   |   |   |   |   |
|   Store lease termination charges                                                                                                                                                                                                                                                                                              |         |        | 749    |   |           |   | 799    |      |   |   | 7,201       |   |   |   | 8,749 |   |
|   Total                                                                                                                                                                                                                                                                                                                        |         | $           | 18,906 |   |           | $      | 836    |      |   | $      | 9,365       |   |   | $ | 29,107 |   |
|   ____________________                                                                                                                                                                                                                                                                                                         |         |
|   (1)  Excludes $53 of retention costs related to the sale of our proprietary credit card receivables programs, which are included in “Restructuring and Other Charges” in the accompanying condensed consolidated statement of operations and comprehensive income for the thirteen weeks ended May 1, 2010. |         |
|   (2)  Accretion charges related to lease termination liability for retained non-core misses apparel assets.                                                                                                                                                                                                              |         |

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|                                                                                                                                                    |   |        |   |   | Costs Incurred |   |   |        |   |   |    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------|--------|--------|-------------|--------|--------|---------|--------|
|                                                                                                                                                    |   | Accrued     |   |   | For Thirteen   |   |   |        |   |   | Accrued |   |
|                                                                                                                                                    |   | as of       |   |   | Weeks Ended    |   |   |        |   |   | as of   |   |
|                                                                                                                                                    |   | January 30, |   |   | May 1,         |   |   | Payments/   |   |   | May 1,  |   |
|   (In thousands)                                                                                                                              |   | 2010(1)     |   |   | 2010           |   |   | Settlements |   |   | 2010(1) |   |
|                                                                                                                                                    |   |        |   |   |           |   |   |        |   |   |    |   |
| Fiscal 2008 Announcements                                                                                                                               |   |        |   |   |           |   |   |        |   |   |    |   |
|   Severance and retention costs(2)                                                                                                            |   | $           | 1,941  |   |           | $      | (16    | )           |   | $      | (672    | )      |   | $ | 1,253 |   |
|   Non-core misses apparel assets:                                                                                                                  |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Lease termination charges                                                                                                                        |   |        | 10,285 |   |           |   | (67    | )           |   |   | (868    | )      |   |   | 9,350 |   |
|   Other costs                                                                                                                                      |   |        | 158    |   |           |   | 0      |        |   |   | (3      | )      |   |   | 155 |   |
|   Transformational initiatives:                                                                                                                    |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Severance and retention costs                                                                                                                    |   |        | 236    |   |           |   | 147    |        |   |   | (205    | )      |   |   | 178 |   |
|                                                                                                                                                    |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Fiscal 2009 Announcements                                                                                                                        |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Closing of PETITE SOPHISTICATE OUTLET stores:                                                                                                    |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Store lease termination charges                                                                                                                  |   |        | 1,215  |   |           |   | 0      |        |   |   | 0       |   |   |   | 1,215 |   |
|   Closing of under-performing stores:                                                                                                              |   |        |   |   |           |   |   |        |   |   |    |   |   |   |   |   |
|   Store lease termination charges                                                                                                                  |   |        | 714    |   |           |   | 744    |        |   |   | (185    | )      |   |   | 1,273 |   |
|   Total                                                                                                                                            |   | $           | 14,549 |   |           | $      | 808    |        |   | $      | (1,933  | )      |   | $ | 13,424 |   |
|   ____________________                                                                                                                             |   |
|   (1)  Included in “Accrued expenses” in the accompanying condensed consolidated balance sheets.                                  |   |
|   (2)  Primarily severance for departure of former CEO, the closing of our LANE BRYANT WOMAN catalog, and the elimination of other positions. |   |

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| ● | Level 1 – Quoted market prices in active markets for identical assets or liabilities.                 |
|---------|-------------------------------------------------------------------------------------------------------------|
|    |                                                                                                        |
| ● | Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. |
|    |                                                                                                        |
| ● | Level 3 – Unobservable inputs that are not corroborated by market data.                               |

|                                                                                                                                                                                                                      |   | As of  |    |   | As of       |   | Fair Value |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|-------------|--------|------------|
|                                                                                                                                                                                                                      |   | May 1, |    |   | January 30, |   | Method     |
|   (In thousands)                                                                                                                                                                                                     |   | 2010   |    |   | 2010        |   | Used       |
|                                                                                                                                                                                                                      |   |   |    |   |        |   |       |
|   Assets                                                                                                                                                                                                             |   |   |    |   |        |   |       |
|   Available-for-sale securities(1)                                                                                                                                                                              |   |   | – | (2)    |        | $      | 200        |   | Level 2 |
| ____________________                                                                                                                                                                                                      |
| (1)  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. |
| (2)  There were no available-for-sale securities as of May 1, 2010.                                                                                                                                                  |

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|                                                                  |   | Retained  |   |   | Servicing |   |
|-----------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|
|   (In thousands)                                                 |   | Interests |   |   | Liability |   |
|                                                                  |   |      |   |   |      |   |
|   Balance, January 31, 2009                                      |   | $         | 94,453 |   |      | $      | 3,046 |   |
|   Additions to I/O strip and servicing liability                 |   |      | 5,979  |   |      |   | 1,051 |   |
|   Net reductions to other retained interests                     |   |      | (4,647 | )      |      |   | – |   |
|   Reductions and maturities of QSPE certificates                 |   |      | (1,481 | )      |      |   | – |   |
|   Amortization of the I/O strip and servicing liability          |   |      | (7,383 | )      |      |   | (1,174 | ) |
|   Valuation adjustments to the I/O strip and servicing liability |   |      | 77     |   |      |   | 21 |   |
|   Balance, May 2, 2009                                           |   | $         | 86,998 |   |      | $      | 2,944 |   |

|                                                                                                                                                     |          | May 1, 2010 |    |   | January 30, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|-------------|---------|--------|------------------|--------|
|                                                                                                                                                     |          | Carrying    |    |   | Fair             |   |   | Carrying |   |   | Fair |   |
| (In thousands)                                                                                                                                           |          | Amount      |    |   | Value            |   |   | Amount |   |   | Value |   |
|                                                                                                                                                     |          |        |    |   |             |   |   |   |   |   |   |   |
| Assets:                                                                                                                                                  |          |        |    |   |             |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                |          | $           | 191,328 |   |             | $      | 191,328 |   |   | $ | 186,580 |   |   | $ | 186,580 |   |
| Available-for-sale securities                                                                                                                            |          |        | 0       |   |             |   | 0 |   |   |   | 200 |   |   |   | 200 |   |
|                                                                                                                                                     |          |        |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                             |          |        |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| 1.125% Senior Convertible Notes, due 2014                                                                                                                |          |        | 149,668 | (1)    |             |   | 154,553 |   |   |   | 147,531 | (1) |   |   | 141,279 |   |
| 6.07% mortgage note, due October 2014                                                                                                                    |          |        | 9,593   |   |             |   | 9,065 |   |   |   | 9,777 |   |   |   | 9,068 |   |
| 6.53% mortgage note, due November 2012                                                                                                                   |          |        | 3,500   |   |             |   | 3,448 |   |   |   | 3,850 |   |   |   | 3,763 |   |
| 7.77% mortgage note, due December 2011                                                                                                                   |          |        | 6,366   |   |             |   | 6,429 |   |   |   | 6,549 |   |   |   | 6,560 |   |
| ____________________                                                                                                                                     |     |
|   (1)  Net of unamortized discount of $39,968 at May 1, 2010 and $42,105 at January 30, 2010 (see “Note 3. Long-term Debt” above). |          |

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

| ●  | Our business is dependent upon our ability to accurately predict rapidly changing fashion trends, customer preferences, and other fashion-related factors.  These risks may increase as we shift a higher proportion of our product to internally-designed merchandise and to overseas sourcing with its associated increase in lead times. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                  |
| ●       | 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.                                                                                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| ●       | Our business plan is largely dependent upon continued growth in the plus-size women’s apparel market, which may not occur.                                                                                                                                                                                                                      |

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| ● | We continue to execute on our five key priorities to guide our organization: (1) focus on the customer; (2) stabilize and begin to grow profitable revenue; (3) increase EBITDA; (4) increase cash flow; and (5) employee empowerment with accountability.  Our key priorities are designed to support our strategic goals to enhance our competitive position and improve our financial results.  We cannot assure the successful execution and the realization of the benefits of our key priorities, which may vary materially based on various factors, including the timing of execution of our strategic initiatives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| ● | Our inability to successfully manage labor costs, occupancy costs, or other operating costs, or our inability to take advantage of opportunities to reduce operating costs, could adversely affect our operating margins and our results of operations.  We cannot assure the successful implementation of our planned cost reduction and capital budget reduction plans or the realization of our anticipated annualized expense savings from our restructuring programs.  Certain key raw materials in our products, such as cotton, wool, and synthetic fabrics, are subject to availability constraints and price volatility.  An increase in the cost or decrease in the availability of such raw materials could adversely affect our operating margins and our results of operations.  In addition, we may be unable to obtain adequate insurance for our operations at a reasonable cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| ● | 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, unionization, or other employee benefits could cause us to incur additional wage and benefit costs, which could adversely affect our results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ● | We depend on the availability of credit for our working capital needs, including credit we receive from our bankers, our factors, our suppliers and their agents, and on our ongoing payments from Alliance Data related to our private-label credit card sales.  The current global financial crisis could adversely affect our ability or the ability of our vendors to secure adequate credit financing.  If we or our vendors are unable to obtain sufficient financing at an affordable cost, our ability to merchandise our retail stores or e-commerce businesses could be adversely affected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ● | We cannot assure that we will realize the expected benefits from the ten-year private-label credit card operating agreements with Alliance Data.  A significant portion of our sales revenues is generated through our private-label credit cards.  Therefore, changes in the private-label credit card programs that adversely impact our ability to facilitate customer credit may adversely impact our results of operations.  Alliance Data will have discretion over certain policies and arrangements with the cardholders and may change these policies and arrangements in ways that could affect our relationship with the cardholders.  Any such changes could adversely affect our private-label credit card sales and our results of operations.  Our ability to continue to offer private-label credit card programs to our customers will depend on the success of our strategic alliance with Alliance Data. Credit card operations are subject to numerous Federal and state laws that impose disclosure and other requirements upon the origination, servicing, and enforcement of credit accounts, and limitations on the amount of finance charges and fees that may be charged by a credit card provider.  Alliance Data may be subject to regulations to which we were not subject prior to the sale of the proprietary credit card receivables programs.  To the extent that such limitations or regulations materially limit the availability of credit or increase the cost of credit to our cardholders or negatively impact provisions which affect our revenue streams associated with the ten-year operating agreements, our results of operations could be adversely affected.  In addition, changes in credit card use, payment patterns, or default rates could be affected by a variety of economic, legal, social, or other factors over which we have no control and cannot predict with certainty.  Such changes could also negatively impact the availability of credit or increase the cost of credit to our cardholders or negatively impact provisions that affect our revenue streams associated with the ten-year operating agreements. |

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| ● | The recent deterioration in economic conditions in the domestic and global economies, higher levels of unemployment, an uncertain economic outlook, and fluctuating energy costs has led to, and could continue to lead to, reduced consumer demand for our products in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| ● | 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.                                                                                                                                                                                                                                                                            |
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| ● | Certain of our business processes that are dependent on technology are outsourced to third parties.  Such processes include credit card authorization and processing, our e-commerce platform, and certain other information technology functions.  Although we make a diligent effort to insure that all providers of outsourced services observe proper internal control practices and procedures, we cannot assure that failures will not occur.  The failure of such third parties to provide adequate services could adversely affect our customers’ shopping experience, our results of operations, liquidity, or our ability to provide adequate financial and management reporting. |
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| ● | We depend on the efforts and abilities of our executive officers and their management teams and we may not be able to retain or replace these employees or recruit additional qualified personnel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| ● | We depend on our distribution and fulfillment centers and third-party freight consolidators, fulfillment centers, and service providers for prompt and efficient deliveries of merchandise to our stores and customers.  We could incur significantly higher costs and experience 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.  The failure to distribute our products promptly could adversely affect our results of operations.                                                                                               |
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| ● | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| ● | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| ● | 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.                                                                                                                                                                               |
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| ● | Our manufacturers may be unable to manufacture and deliver merchandise to us in a timely manner or to meet our quality standards.  In addition, if any one of our manufacturers or vendors fails to operate in compliance with applicable laws and regulations, is perceived by the public as failing to meet certain United States labor standards, or employs unfair labor practices, our business could be adversely affected.                                                                                                                                                                                                                                                                                     |
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| ● | We may be unable to protect our trademarks and other intellectual property rights, which are important to our success and our competitive position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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| ● | Our long-term growth plan depends on our ability to open and profitably operate new retail stores, to convert, where applicable, the formats of existing stores on a profitable basis, and to continue to expand our outlet distribution channel.  Our retail stores depend 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.  In addition, we will need to identify, hire, and retain a sufficient number of qualified personnel to work in our stores.  We cannot assure that desirable store locations will continue to be available, or that we will be able to hire and retain a sufficient number of suitable sales associates at our stores.                                                                                                                                                                                                                                     |
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| ● | Consolidation in the commercial retail real estate industry could affect our ability to successfully negotiate favorable rent terms for our stores in the future.  Our ability to operate successfully as a mall-based retailer is dependent upon our ability to develop and maintain good relationships with our landlords.  Potential consolidation in the commercial retail real estate industry could limit our future ability to negotiate favorable rent terms or to close under-performing stores on favorable terms.  Should a significant consolidation occur, a large proportion of our store base could be concentrated with one or a few entities that could then be in a position to dictate unfavorable terms to us due to the significant leverage they would possess.  If we are unable to negotiate favorable rent terms with these entities and are therefore unable to profitably operate our existing stores, our business, financial condition, and results of operations could be materially and adversely affected. |
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| ● | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | We continually evaluate our portfolio of businesses and may decide to acquire or divest businesses or enter into joint venture or strategic alliances.  If we fail to manage the risks associated with acquisitions, divestitures, joint ventures, or other alliances, our business, financial condition, and results of operations could be materially and adversely affected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| ● | 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.                                                                                                                                                                                                                                                          |
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| ● | 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 upon the occurrence of a “fundamental change” as defined in the prospectus filed in connection with the 1.125% Notes (see “Item 8.  Financial Statements and Supplementary Data; Notes to Consolidated Financial Statements; Note 8. Long-Term Debt” of our Annual Report on Form 10-K for the fiscal year ended January 30, 2010).  Such a repurchase would require significant amounts of cash, would be subject to important limitations on our ability to repurchase, such as the risk of our inability to obtain funds for such repurchase, and could adversely affect our financial condition.                                                                                                                                                                                                                   |
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| ● | Changes to existing accounting rules or the adoption of new rules could have an adverse impact on our reported financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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CRITICAL ACCOUNTING POLICIES

RECENT DEVELOPMENTS

OVERVIEW

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| ● | We will again be offering Juniors initially in approximately 280 stores in the back-to-school timeframe to provide needed assortment choices to our customers, particularly in non-metro markets.                |
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| ● | We will also again be offering a Junior Plus assortment in approximately 50 FASHION BUG stores.                                                                                                                  |
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| ● | We will be adding extended assortments in approximately 100 stores with excess floor space – extended assortments will include our Essentials plus assortment, footwear, and intimate apparel.             |
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| ● | We will also be testing approximately 20-25 stores in various scenarios, including carrying sister brands LANE BRYANT or CATHERINES along with FASHION BUG, as well as conversions to those individual concepts. |

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RESULTS OF OPERATIONS

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Percentage of Net Sales(1) |   |   | Percentage |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Thirteen Weeks Ended       |   |   | Change     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | May 1,                     |   |   | May 2,     |   |   | From Prior |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2010                       |   |   | 2009       |   |   | Period |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |   |   |       |   |   |   |   |
| Net sales                                                                                                                             |   |                       | 100.0  | %      |       |   | 100.0 | % |   |   | (6.2 | )% |
| Cost of goods sold                                                                                                                    |   |                       | 45.2   |   |       |   | 46.6 |   |   |   | (8.9 | ) |
| Gross profit                                                                                                                          |   |                       | 54.8   |   |       |   | 53.4 |   |   |   | (3.8 | ) |
| Occupancy and buying expenses                                                                                                         |   |                       | 18.3   |   |       |   | 19.1 |   |   |   | (10.1 | ) |
| Selling, general, and administrative expenses                                                                                         |   |                       | 31.5   |   |       |   | 29.3 |   |   |   | 1.1 |   |
| Depreciation and amortization                                                                                                         |   |                       | 3.3    |   |       |   | 3.7 |   |   |   | (16.3 | ) |
| Restructuring and other charges                                                                                                       |   |                       | 0.2    |   |       |   | 1.6 |   |   |   | (89.8 | ) |
| Income/(loss) from operations                                                                                                         |   |                       | 1.5    |   |       |   | (0.2 | ) |   |   | ** |   |
| Other income                                                                                                                          |   |                       | 0.0    |   |       |   | 0.0 |   |   |   | (30.3 | ) |
| Gain on repurchases of debt                                                                                                           |   |                       | 0.0    |   |       |   | 0.8 |   |   |   | (100.0 | ) |
| Interest expense                                                                                                                      |   |                       | 0.9    |   |       |   | 0.9 |   |   |   | (10.9 | ) |
| Income tax (benefit)/provision                                                                                                        |   |                       | 0.1    |   |       |   | 0.9 |   |   |   | (115.7 | ) |
| Net income/(loss)                                                                                                                     |   |                       | 0.8    |   |       |   | (1.2 | ) |   |   | ** |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| (1)  Results may not add due to rounding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| **  Results not meaningful.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Thirteen Weeks Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | May 1,               |   |   | May 2, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2010                 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |
| Retail Stores segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |   |   |
| Decrease in comparable store sales(1) :                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 |   |   |   |   |
| Consolidated retail stores                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (2     | )% |   |   | (13 | )% |
| LANE BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | (3     | ) |   |   | (15 | ) |
| FASHION BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | (2     | ) |   |   | (13 | ) |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (3     | ) |   |   | (9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
|  Sales from new stores as a percentage of total consolidated prior-period sales(2):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 |   |   |   |   |   |   |
| LANE BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | 2      |   |   |   | 2 |   |
| FASHION BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | 0      |   |   |   | 0 |   |
| CATHERINES(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | 1      |   |   |   | 0 |   |
| Other retail stores(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 | 0      |   |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
|  Prior-period sales from closed stores as a percentage of total consolidated prior-period sales:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |   |   |   |   |
| LANE BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | (1     | ) |   |   | (2 | ) |
| FASHION BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | (3     | ) |   |   | (3 | ) |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | (0     | ) |   |   | (0 | ) |
| Other retail stores(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | (1     | ) |   |   | (0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
|  Decrease in Retail Stores segment sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | (5     | ) |   |   | (16 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
|  Direct-to-Consumer segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 |   |   |   |   |   |   |
| Decrease in Direct-to-Consumer segment sales(6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 | (35    | ) |   |   | (28 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |   |   |   |   |
|  Decrease in consolidated total net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | (6     | ) |   |   | (16 | ) |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
| (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 CATHERINES stores in outlet locations, which were converted from PETITE SOPHISTICATE OUTLET stores during the Fiscal 2009 Fourth Quarter and Fiscal 2010 First Quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| (5)  Includes PETITE SOPHISTICATE OUTLET stores, which were closed or converted to CATHERINES stores in outlet locations during the Fiscal 2009 Fourth Quarter and Fiscal 2010 First Quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (6)  Primarily reduced sales from our LANE BRYANT WOMAN catalog and related website. During the Fiscal 2008 Third Quarter we decided to discontinue the LANE BRYANT WOMAN catalog, which we completed during the Fiscal 2009 Second Quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |

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|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   | Total   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|---------|--------|---------|------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                              |   | LANE      |    |   | FASHION |   |    |       |   |   | Retail  |   |
| (In millions)                                                                                                                                                                                                                                                                                                                                     |   | BRYANT(1) |    |   | BUG     |   |    | CATHERINES |   |   | Stores  |   |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |    |   |
| Thirteen weeks ended May 1, 2010                                                                                                                                                                                                                                                                                                                  |   |      |    |   |    |   |    |       |   |   |    |   |
| Net sales                                                                          |   | $         | 246.2   |   |    | $      | 165.9   |       |   | $      | 80.0    |   |   | $ | 492.1 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |    |   |   |   |   |   |
| Net income/(loss)                                                                  |   |      | 25.7    |   |    |   | (1.0    | )          |   |   | 3.2     |   |   |   | 27.9 |   |
| Income tax (benefit)/provision                                                     |   |      | – |   |    |   | – |       |   |   | – |   |   |   | – |   |
| Net interest expense/other income                                                                                                                                                                                                                                                                                                                 |   |      | – |   |    |   | – |       |   |   | – |   |   |   | – |   |
| Depreciation and amortization                                                      |   |      | 8.4     |   |    |   | 2.7     |       |   |   | 2.0     |   |   |   | 13.1 |   |
| EBITDA                                                                             |   |      | 34.1    |   |    |   | 1.7     |       |   |   | 5.2     |   |   |   | 41.0 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |    |   |   |   |   |   |
| Restructuring and other charges                                                    |   |      | – |   |    |   | – |       |   |   | – |   |   |   | – |   |
| Adjusted EBITDA                                                                    |   | $         | 34.1    |   |    | $      | 1.7     |       |   | $      | 5.2     |   |   | $ | 41.0 |   |
| Adjusted EBITDA as a % of net sales                                                                                                                                                                                                                                                                                                               |   |      | 13.9    | %      |    |   | 1.0     | %          |   |   | 6.5     | %      |   |   | 8.3 | % |
|  ____________________                                                                                                                                                                                                                                                                                                                        |   |      |    |   |    |   |    |       |   |   |    |   |   |   |   |   |
|   (1)  Includes LANE BRYANT OUTLET stores, with net sales of $27.0 and adjusted EBITDA of $3.9.                                                                                                                                                                                                                                         |   |

|                                                                                                                                                                                                                                                                                                                                              |   | Direct-to-  |    |   | Corporate |   |          |         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|-----------|--------|---------------|--------------|--------|
| (In millions)                                                                                                                                                                                                                                                                                                                                     |   | Consumer(2) |    |   | And Other |   |          | Consolidated |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |
| Thirteen weeks ended May 1, 2010                                                                                                                                                                                                                                                                                                                  |   |        |    |   |      |   |          |         |   |
| Net sales                                                                          |   | $           | 12.7    |   |      | $      | 0.0           |         |   | $ | 504.8 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
| Net income/(loss)                                                                  |   |        | (1.6    | )      |      |   | (22.4         | )            |   |   | 3.9 |   |
| Income tax (benefit)/provision                                                     |   |        | – |   |      |   | (0.7          | )            |   |   | (0.7 | ) |
| Net interest expense/other income                                                                                                                                                                                                                                                                                                                 |   |        | – |   |      |   | 4.3           |         |   |   | 4.3 |   |
| Depreciation and amortization                                                      |   |        | 0.3     |   |      |   | 3.4           |         |   |   | 16.8 |   |
| EBITDA                                                                             |   |        | (1.3    | )      |      |   | (15.4         | )            |   |   | 24.3 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
| Restructuring and other charges                                                    |   |        | – |   |      |   | 0.9           |         |   |   | 0.9 |   |
| Adjusted EBITDA                                                                    |   | $           | (1.3    | )      |      | $      | (14.5         | )            |   | $ | 25.2 |   |
| Adjusted EBITDA as a % of net sales                                                                                                                                                                                                                                                                                                               |   |        | (10.2   | )%     |      |   |  – | (3)          |   |   | 5.0 | % |
| ____________________                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
|   (2)  FIGI’S catalog business.                                                                                                                                                                                                                                                                                                   |   |
|   (3)  Not meaningful.                                                                                                                                                                                                                                                                                                                  |   |

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|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   | Other     |   |   | Total  |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|---------|--------|---------|------------|--------|--------|-----------|--------|--------|--------|---------|
|                                                                                                                                                                                                                                                                                                                                              |   | LANE      |    |   | FASHION |   |    |       |   |   | Retail    |   |   | Retail |    |
| (In millions)                                                                                                                                                                                                                                                                                                                                     |   | BRYANT(1) |    |   | BUG     |   |    | CATHERINES |   |   | Stores(2) |   |   | Stores |    |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |      |   |   |   |    |
| Thirteen weeks ended May 2, 2009                                                                                                                                                                                                                                                                                                                  |   |      |    |   |    |   |    |       |   |   |      |   |   |   |    |
| Net sales                                                                          |   | $         | 253.8   |   |    | $      | 181.4   |       |   | $      | 78.7      |   |   | $      | 4.4     |   |   | $ | 518.3 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| Net income/(loss)                                                                  |   |      | 27.4    |   |    |   | 2.1     |       |   |   | 7.6       |   |   |   | 0.2     |   |   |   | 37.3 |   |
| Income tax (benefit)/provision                                                     |   |      | – |   |    |   | – |       |   |   | –   |   |   |   | – |   |   |   | – |   |
| Net interest expense/other income                                                                                                                                                                                                                                                                                                                 |   |      | – |   |    |   | – |       |   |   | –   |   |   |   | – |   |   |   | – |   |
| Depreciation and amortization                                                      |   |      | 9.2     |   |    |   | 3.9     |       |   |   | 1.9       |   |   |   | 0.1     |   |   |   | 15.1 |   |
| EBITDA                                                                             |   |      | 36.6    |   |    |   | 6.0     |       |   |   | 9.5       |   |   |   | 0.3     |   |   |   | 52.4 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |    |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| Gain on repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                            |   |      | – |   |    |   | – |       |   |   | –   |   |   |   | – |   |   |   | – |   |
| Restructuring and other charges                                                    |   |      | – |   |    |   | – |       |   |   | –   |   |   |   | – |   |   |   | – |   |
| Adjusted EBITDA                                                                    |   | $         | 36.6    |   |    | $      | 6.0     |       |   | $      | 9.5       |   |   | $      | 0.3     |   |   | $ | 52.4 |   |
| Adjusted EBITDA as a % of net sales                                                                                                                                                                                                                                                                                                               |   |      | 14.4    | %      |    |   | 3.3     | %          |   |   | 12.1      | %      |   |   | 6.8     | % |   |   | 10.1 | % |
|  ____________________                                                                                                                                                                                                                                                                                                                        |   |      |    |   |    |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
|   (1)  Includes LANE BRYANT OUTLET stores, with net sales of $27.5 and adjusted EBITDA of $4.1.                                                                                                                                                                                                                                         |   |
|   (2)  Includes PETITE SOPHISTICATE OUTLET stores, which began operations in September 2006 and were closed during the Fiscal 2009 Fourth Quarter.                                                                                                                                                                                      |   |

|                                                                                                                                                                                                                                                                                                                                              |   | Direct-to-  |    |   | Corporate |   |          |         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|-----------|--------|---------------|--------------|--------|
| (In millions)                                                                                                                                                                                                                                                                                                                                     |   | Consumer(3) |    |   | And Other |   |          | Consolidated |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |
| Thirteen weeks ended May 2, 2009                                                                                                                                                                                                                                                                                                                  |   |        |    |   |      |   |          |         |   |
| Net sales                                                                          |   | $           | 19.4    |   |      | $      | 0.4           | (4)          |   | $ | 538.1 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
| Net income/(loss)                                                                  |   |        | (6.5    | )      |      |   | (37.4         | )            |   |   | (6.6 | ) |
| Income tax (benefit)/provision                                                     |   |        | – |   |      |   | 4.7           |         |   |   | 4.7 |   |
| Net interest expense/other income                                                                                                                                                                                                                                                                                                                 |   |        | – |   |      |   | 4.8           |         |   |   | 4.8 |   |
| Depreciation and amortization                                                      |   |        | 0.4     |   |      |   | 4.6           |         |   |   | 20.1 |   |
| EBITDA                                                                             |   |        | (6.1    | )      |      |   | (23.3         | )            |   |   | 23.0 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
| Gain on repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                            |   |        | – |   |      |   | (4.2          | )            |   |   | (4.2 | ) |
| Restructuring and other charges                                                    |   |        | – |   |      |   | 8.7           |         |   |   | 8.7 |   |
| Adjusted EBITDA                                                                    |   | $           | (6.1    | )      |      | $      | (18.8         | )            |   | $ | 27.5 |   |
| Adjusted EBITDA as a % of net sales                                                                                                                                                                                                                                                                                                               |   |        | (31.4   | )%     |      |   |  – | (5)          |   |   | 5.1 | % |
| ____________________                                                                                                                                                                                                                                                                                                                              |   |        |    |   |      |   |          |         |   |   |   |   |
|   (3)  Includes FIGI’S, with net sales of $11.1 and adjusted EBITDA of $(1.3). Also includes net sales of $8.3 and adjusted EBITDA of $(4.8) related primarily to our LANE BRYANT WOMAN catalog business that we shut down in the Fiscal 2009 Second Quarter.                                                                |   |
|   (4)  Revenues related to figure magazine, which was discontinued in the Fiscal 2009 First Quarter.                                                                                                                                                                                                                                    |   |
|   (5)  Not meaningful.                                                                                                                                                                                                                                                                                                                  |   |

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|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                     |   | LANE   |   |   | FASHION |   |   |       |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                     |   | BRYANT |   |   | BUG     |   |   | CATHERINES |   |   | Total  |   |
|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |
| Fiscal 2010 Year-to-Date:                                                                                                                                                                                                                                                                                                |   |   |   |   |    |   |   |       |   |   |   |   |
| Stores at January 30, 2010                                                                                                                                                                                                                                                                                               |   |   | 860    |   |    |   | 801    |       |   |   | 460    |   |   |   | 2,121 |   |
|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |   |   |   |   |
| Stores opened                                                                                                                                                                                                                                                                                                            |   |   | 0      |   |    |   | 0      |       |   |   | 0      |   |   |   | 0 |   |
| Stores converted(1)                                                                                                                                                                                                                                                                                                      |   |   | 0      |   |    |   | 0      |       |   |   | 28     |   |   |   | 28 |   |
| Stores closed(2)                                                                                                                                                                                                                                                                                                         |   |   | (6     | )      |    |   | (11    | )          |   |   | (4     | )      |   |   | (21 | ) |
| Net change in stores                                                                                                                                                                                                                                                                                                     |   |   | (6     | )      |    |   | (11    | )          |   |   | 24     |   |   |   | 7 |   |
|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |   |   |   |   |
| Stores at May 1, 2010                                                                                                                                                                                                                                                                                                    |   |   | 854    |   |    |   | 790    |       |   |   | 484    |   |   |   | 2,128 |   |
|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |   |   |   |   |
| Stores relocated during period                                                                                                                                                                                                                                                                                           |   |   | 5      |   |    |   | 0      |       |   |   | 0      |   |   |   | 5 |   |
|                                                                                                                                                                                                                                                                                                                     |   |   |   |   |    |   |   |       |   |   |   |   |   |   |   |   |
| Fiscal 2010 Plan:                                                                                                                                                                                                                                                                                                        |   |   |   |   |    |   |   |       |   |   |   |   |   |   |   |   |
| Store openings                                                                                                                                                                                                                                                                                                           |   |   | 6-8    |   |    |   | 0      |       |   |   | 0      |   |   |   | 6-8 |   |
| Store conversions(3)                                                                                                                                                                                                                                                                                                     |   |   | 0      |   |    |   | 0      |       |   |   | 28     |   |   |   | 28 |   |
| Store closings                                                                                                                                                                                                                                                                                                           |   |   | 30-40  |   |    |   | 55-60  |       |   |   | 15-20  |   |   |   | 100-120 |   |
| Store relocations                                                                                                                                                                                                                                                                                                        |   |   | 9-11   |   |    |   | 0      |       |   |   | 0      |   |   |   | 9-11 |   |
| ____________________                                                                                                                                                                                                                                                                                                     |   |
| (1)During Fiscal 2009 we decided to close our PETITE SOPHISTICATE OUTLET stores and convert 33 of the locations to CATHERINES stores in outlet locations. We converted 5 stores during Fiscal 2009 and converted the remaining 28 stores during the Fiscal 2010 First Quarter.                                      |   |
| (2)Includes 11 FASHION BUG, 5 LANE BRYANT, and 4 CATHERINES stores closed as part of the store closing initiatives announced in February 2008, November 2008, and March 2010.                                                                                                                                            |   |
| (3)Includes 28 PETITE SOPHISTICATE OUTLET STORES converted to CATHERINES stores in outlet locations in February 2010 (see Footnote (1) above). Does not include 20-25 FASHION BUG test stores to be converted to include merchandise from our LANE BRYANT and CATHERINES brands (see “OVERVIEW” above). |   |

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LIQUIDITY AND CAPITAL RESOURCES

|                                                         |   | May 1, |   |   | January 30, |   |
|--------------------------------------------------------------|--------|--------|--------|--------|-------------|--------|
| (Dollars in millions)                                        |   | 2010   |   |   | 2010        |   |
|                                                         |   |   |   |   |        |   |
| Cash, cash equivalents, and available-for-sale securities    |   | $      | 191.3  |   |        | $      | 186.8 |   |
| Available borrowing capacity under revolving credit facility |   | $      | 145.0  |   |        | $      | 141.4 |   |
| Working capital                                              |   | $      | 348.0  |   |        | $      | 335.6 |   |
| Current ratio                                                |   |   | 2.2    |   |        |   | 2.2 |   |
| Long-term debt to equity ratio                               |   |   | 46.5   | %      |        |   | 47.3 | % |

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FINANCING

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|                                                                                                 |   | Thirteen    |   |
|------------------------------------------------------------------------------------------------------|--------|-------------|--------|
|                                                                                                 |   | Weeks Ended |   |
| (In millions)                                                                                        |   | May 2, 2009 |   |
|                                                                                                 |   |        |   |
| Net securitization excess spread revenues                                                            |   | $           | 16.9   |   |
| Net changes to the I/O strip and servicing liability                                                 |   |        | (1.2   | ) |
| Other credit card revenues, net(1)                                                              |   |        | 3.2    |   |
| Total proprietary credit card revenues                                                               |   |        | 18.9   |   |
| Less total credit card program expenses                                                              |   |        | 14.9   |   |
| Total credit contribution                                                                            |   | $           | 4.0    |   |
| ____________________                                                                                 |   |
| (1)  Excludes inter-company merchant fees between our credit entities and our retail entities.. |   |

|                                    |   | Thirteen    |   |
|-----------------------------------------|--------|-------------|--------|
|                                    |   | Weeks Ended |   |
| (In millions)                           |   | May 2, 2009 |   |
|                                    |   |        |   |
| Average managed receivables outstanding |   | $           | 504.4  |   |
| Ending managed receivables outstanding  |   |        | 499.2  |   |

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MARKET RISK

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IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |      |   |   |       |   |   | 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(2)      |   |   | Programs(2) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |      |   |   |       |   |   |             |   |   |        |   |
| January 31, 2010 through February 27, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |      | 25,509 | (1)    |       | $      | 5.46   |             |   |   | –     |   |   |   |   |
| February 28, 2010 through April 3, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |      | 43,319 | (1)    |       |   | 6.69   |             |   |   | –     |   |   |   |   |
| April 4, 2010 through May 1, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |      | 5,271  | (1)    |       |   | 5.33   |             |   |   | –     |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | 74,099 |   |       | $      | 6.17   |             |   |   | –     |   |   |   |   | (2) |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| (1)  Shares withheld for the payment of payroll taxes on employee stock awards that vested during the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (2)  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. 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. No shares have been purchased under this plan subsequent to May 3, 2008. As of May 1, 2010, $197,364,592 was available for future repurchases under this program. This repurchase program has no expiration date. |   |

Item 6. Exhibits

| 2.1    | Purchase Agreement dated as of August 12, 2009 among SOANB and CSRC, as sellers, SOAI, and WFNNB, as purchaser, incorporated by reference to Form 8-K of the Registrant dated August 12, 2009, filed on August 14, 2009 (File No. 000-07258, Exhibit 10.1). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                        |
| 3.1    | Restated Articles of Incorporation, incorporated by reference to Form 10-Q of the Registrant for the quarter ended August 2, 2008 (File No. 000-07258, Exhibit 3.1).                                                                                        |
|   |                                                                                                                                                                                                                                                        |
| 3.2    | Bylaws, as Amended and Restated, incorporated by reference to Form 10-K of the Registrant for the fiscal year ended January 31, 2009 (File No. 000-07258, Exhibit 3.2).                                                                                     |
|   |                                                                                                                                                                                                                                                        |
| 10.1   | Form of Annual Incentive Plan for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated March 29, 2010, filed on April 2, 2010 (File No. 000-07258, Exhibit 10.1).                                                              |
|   |                                                                                                                                                                                                                                                        |

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| 10.2   | Form of Time-Based Stock Appreciation Rights Agreement for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated April 5, 2010, filed on April 8, 2010 (File No. 000-07258, Exhibit 10.1). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                   |
| 10.3   | Form of Time-Based Restricted Stock Units Agreement for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated April 5, 2010, filed on April 8, 2010 (File No. 000-07258, Exhibit 10.2).    |
|   |                                                                                                                                                                                                                   |
| 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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SIGNATURES

|               | CHARMING SHOPPES, INC.   |
|--------------------|--------------------------|
|               | (Registrant)             |
|               |                     |
|               |                     |
|               |                     |
| Date: June 3, 2010 | /S/ JAMES P. FOGARTY     |
|               | James P. Fogarty         |
|               | President                |
|               | Chief Executive Officer  |
|               |                     |
|               |                     |
|               |                     |
| Date: June 3, 2010 | /S/ ERIC M. SPECTER      |
|               | Eric M. Specter          |
|               | Executive Vice President |
|               | Chief Financial Officer  |

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EXHIBIT INDEX

| Exhibit No. |   | Item                                                                                                                                                                                                                                                        |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                        |
| 2.1         |   | Purchase Agreement dated as of August 12, 2009 among SOANB and CSRC, as sellers, SOAI, and WFNNB, as purchaser, incorporated by reference to Form 8-K of the Registrant dated August 12, 2009, filed on August 14, 2009 (File No. 000-07258, Exhibit 10.1). |
|        |   |                                                                                                                                                                                                                                                        |
| 3.1         |   | Restated Articles of Incorporation, incorporated by reference to Form 10-Q of the Registrant for the quarter ended August 2, 2008 (File No. 000-07258, Exhibit 3.1).                                                                                        |
|        |   |                                                                                                                                                                                                                                                        |
| 3.2         |   | Bylaws, as Amended and Restated, incorporated by reference to Form 10-K of the Registrant for the fiscal year ended January 31, 2009 (File No. 000-07258, Exhibit 3.2).                                                                                     |
|        |   |                                                                                                                                                                                                                                                        |
| 10.1        |   | Form of Annual Incentive Plan for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated March 29, 2010, filed on April 2, 2010 (File No. 000-07258, Exhibit 10.1).                                                              |
|        |   |                                                                                                                                                                                                                                                        |
| 10.2        |   | Form of Time-Based Stock Appreciation Rights Agreement for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated April 5, 2010, filed on April 8, 2010 (File No. 000-07258, Exhibit 10.1).                                      |
|        |   |                                                                                                                                                                                                                                                        |
| 10.3        |   | Form of Time-Based Restricted Stock Units Agreement for Executive Officers, incorporated by reference to Form 8-K of the Registrant dated April 5, 2010, filed on April 8, 2010 (File No. 000-07258, Exhibit 10.2).                                         |
|        |   |                                                                                                                                                                                                                                                        |
| 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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