----

Table ofContents

----

----

|   | 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 |

----

----

----

Table ofContents

----

Table ofContents

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| PART      I.  | FINANCIAL      INFORMATION                                                                                                                     | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1.  | Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Condensed      Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|          | October 31, 2009 and January 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Condensed      Consolidated Statements of Operations and Comprehensive    Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|          | Thirteen weeks ended October 31, 2009 and November      1, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3      |
|          | Thirty-nine weeks ended October 31, 2009 and      November 1, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 4      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Condensed      Consolidated Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Thirty-nine weeks ended October 31, 2009 and November 1,      2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 5      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Notes to Condensed Consolidated Financial      Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 7      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      2.  | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 34     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Forward-looking Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 34     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Critical Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 38     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Recent Developments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 38     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Overview                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 39     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 42     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Liquidity and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 56     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 58     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 61     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Impact of Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 62     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      3.  | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 62     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      4.  | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 62     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| PART      II. | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 63     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1.  | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 63     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 63     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      2.  | Unregistered Sales of Equity Securities and Use of      Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 65     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 66     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 69     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 70     |

----

Table ofContents

PART I.

Item 1.

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | October      31, |      |   | January      31,   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|--------------------|--------|
| (In      thousands, except share amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009             |      |   | 2009               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   | (As      Adjusted) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             |      |   |               |   |
| Current      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |      |   |               |   |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                | 223,944   |   |               | $      | 93,759 |   |
| Available-for-sale      securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | 400       |   |               |   | 6,398 |   |
| Accounts      receivable, net of allowances of $2,017 and $6,018                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 4,100     |   |               |   | 33,300 |   |
| Investment      in asset-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 0         |   |               |   | 94,453 |   |
| Merchandise      inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | 334,462   |   |               |   | 268,142 |   |
| Deferred      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 3,439     |   |               |   | 3,439 |   |
| Prepayments      and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 131,166   |   |               |   | 155,430 |   |
| Total      current      assets                                                                                                |   |             | 697,511   |   |               |   | 654,921 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |   |   |
| Property,      equipment, and leasehold improvements – at cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 1,067,100 |   |               |   | 1,076,972 |   |
| Less      accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 734,768   |   |               |   | 693,796 |   |
| Net      property, equipment, and leasehold improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 332,332   |   |               |   | 383,176 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |   |   |
| Trademarks      and other intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 187,132   |   |               |   | 187,365 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | 23,436    |   |               |   | 23,436 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 25,497    |   |               |   | 28,243 |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                | 1,265,908 |   |               | $      | 1,277,141 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             |      |   |               |   |   |   |
| Current      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |      |   |               |   |   |   |
| Accounts      payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                | 163,142   |   |               | $      | 99,520 |   |
| Accrued      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | 184,344   |   |               |   | 166,631 |   |
| Current      portion – long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 6,470     |   |               |   | 6,746 |   |
| Total      current      liabilities                                                                                           |   |             | 353,956   |   |               |   | 272,897 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |   |   |
| Deferred      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 48,730    |   |               |   | 46,197 |   |
| Other      non-current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | 188,979   |   |               |   | 188,470 |   |
| Long-term      debt, net of debt discount of $47,962 and $72,913                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 183,630   |   |               |   | 232,722 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |      |   |               |   |   |   |
| Stockholders’      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             |      |   |               |   |   |   |
| Common      Stock $.10 par value:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |      |   |               |   |   |   |
| Authorized      – 300,000,000 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |      |   |               |   |   |   |
| Issued      – 154,098,888 shares and 153,482,368 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 15,410    |   |               |   | 15,348 |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | 502,339   |   |               |   | 498,551 |   |
| Treasury      stock at cost – 38,514,410 shares and 38,482,213 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | (347,877  | )      |               |   | (347,730 | ) |
| Accumulated      other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 0         |   |               |   | 5 |   |
| Retained      earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 320,741   |   |               |   | 370,681 |   |
| Total      stockholders’      equity                                                                                    |   |             | 490,613   |   |               |   | 536,855 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                | 1,265,908 |   |               | $      | 1,277,141 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| See      Notes to Condensed Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |

----

Table ofContents

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                              |   | Thirteen Weeks Ended |    |
|-------------------------------------------------------------------|--------|----------------------|---------|
|                                                              |   | October      31,     |    |   | November      1, |   |
| (In      thousands, except per share amounts)                     |   | 2009                 |    |   | 2008 |   |
|                                                              |   |                 |    |   | (As      Adjusted) |   |
|                                                              |   |                 |    |   |   |   |
| Net      sales                                                    |   | $                    | 460,237 |   |   | $ | 553,066 |   |
|                                                              |   |                 |    |   |   |   |   |   |
| Cost      of goods sold                                           |   |                 | 223,421 |   |   |   | 299,196 |   |
| Gross      profit                                                 |   |                 | 236,816 |   |   |   | 253,870 |   |
|                                                              |   |                 |    |   |   |   |   |   |
| Occupancy      and buying expenses                                |   |                 | 95,020  |   |   |   | 106,552 |   |
| Selling,      general, and administrative expenses                |   |                 | 135,479 |   |   |   | 166,338 |   |
| Depreciation      and amortization                                |   |                 | 18,260  |   |   |   | 23,131 |   |
| Sale      of proprietary credit card receivables programs         |   |                 | 13,379  |   |   |   | 0 |   |
| Impairment      of store assets                                   |   |                 | 0       |   |   |   | 20,216 |   |
| Restructuring      and other charges                              |   |                 | 14,746  |   |   |   |  6,391 |   |
| Total      operating expenses                                     |   |                 | 276,884 |   |   |   | 322,628 |   |
|                                                              |   |                 |    |   |   |   |   |   |
| Loss      from operations                                         |   |                 | (40,068 | ) |   |   | (68,758 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Other      income                                                 |   |                 | 198     |   |   |   | 1,876 |   |
| Gain      on repurchases of 1.125% Senior Convertible Notes       |   |                 | 1,264   |   |   |   | 0 |   |
| Interest      expense                                             |   |                 | (4,822  | ) |   |   | (4,862 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Loss      from continuing operations before income taxes          |   |                 | (43,428 | ) |   |   | (71,744 | ) |
| Income      tax provision/(benefit)                               |   |                 | 4,934   |   |   |   | (11,858 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Loss      from continuing operations                              |   |                 | (48,362 | ) |   |   | (59,886 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Loss      from discontinued operations, net of income tax benefit |   |                 |    |   |   |   |   |   |
| of $12,698 in2008                                                 |   |                 | 0       |   |   |   | (23,875 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Net      loss                                                     |   | $                    | (48,362 | ) |   | $ | (83,761 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Basic      net loss per share:                                    |   |                 |    |   |   |   |   |   |
| Loss      from continuing operations                              |   | $                    | (0.42   | ) |   | $ | (0.52 | ) |
| Loss      from discontinued operations                            |   |                 | 0.00    |   |   |   | (0.21 | ) |
| Net      loss                                                     |   | $                    | (0.42   | ) |   | $ | (0.73 | ) |
|                                                              |   |                 |    |   |   |   |   |   |
| Diluted      net loss per share:                                  |   |                 |    |   |   |   |   |   |
| Loss      from continuing operations                              |   | $                    | (0.42   | ) |   | $ | (0.52 | ) |
| Loss      from discontinued operations                            |   |                 | 0.00    |   |   |   | (0.21 | ) |
| Net      loss                                                     |   | $                    | (0.42   | ) |   | $ | (0.73 | ) |
|                                                              |   |
| See      Notes to Condensed Consolidated Financial Statements     |   |

----

Table ofContents

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                                       |   | Thirty-nine Weeks Ended |      |
|----------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                       |   | October      31,        |      |   | November      1, |   |
| (In      thousands, except per share amounts)                              |   | 2009                    |      |   | 2008 |   |
|                                                                       |   |                    |      |   | (As      Adjusted) |   |
|                                                                       |   |                    |      |   |   |   |
| Net      sales                                                             |   | $                       | 1,525,590 |   |   | $ | 1,843,028 |   |
|                                                                       |   |                    |      |   |   |   |   |   |
| Cost      of goods sold                                                    |   |                    | 737,340   |   |   |   | 959,409 |   |
| Gross      profit                                                          |   |                    | 788,250   |   |   |   | 883,619 |   |
|                                                                       |   |                    |      |   |   |   |   |   |
| Occupancy      and buying expenses                                         |   |                    | 297,660   |   |   |   | 318,900 |   |
| Selling,      general, and administrative expenses                         |   |                    | 427,260   |   |   |   | 517,119 |   |
| Depreciation      and amortization                                         |   |                    | 57,534    |   |   |   | 72,630 |   |
| Sale      of proprietary credit card receivables programs                  |   |                    | 13,379    |   |   |   | 0 |   |
| Impairment      of store assets                                            |   |                    | 0         |   |   |   | 20,216 |   |
| Restructuring      and other charges                                       |   |                    | 31,219    |   |   |   | 24,947 |   |
| Total      operating expenses                                              |   |                    | 827,052   |   |   |   | 953,812 |   |
|                                                                       |   |                    |      |   |   |   |   |   |
| Loss      from operations                                                  |   |                    | (38,802   | ) |   |   | (70,193 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Other      income                                                          |   |                    | 679       |   |   |   | 3,183 |   |
| Gain      on repurchases of 1.125% Senior Convertible Notes                |   |                    | 12,828    |   |   |   | 0 |   |
| Interest      expense                                                      |   |                    | (14,327   | ) |   |   | (14,665 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Loss      from continuing operations before income taxes                   |   |                    | (39,622   | ) |   |   | (81,675 | ) |
| Income      tax provision/(benefit)                                        |   |                    | 10,318    |   |   |   | (15,317 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Loss      from continuing operations                                       |   |                    | (49,940   | ) |   |   | (66,358 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Loss      from discontinued operations                                     |   |                    | 0         |   |   |   | (74,922 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Net      loss                                                              |   |                    | (49,940   | ) |   |   | (141,280 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Other      comprehensive loss, net of tax                                  |   |                    |      |   |   |   |   |   |
| Unrealized      losses on available-for-sale securities, net of income tax |   |                    |      |   |   |   |   |   |
| benefit of $12 in      2008                                                |   |                    | (5        | ) |   |   | (24 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Comprehensive      loss                                                    |   | $                       | (49,945   | ) |   | $ | (141,304 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Basic      net loss per share:                                             |   |                    |      |   |   |   |   |   |
| Loss      from continuing operations                                       |   | $                       | (0.43     | ) |   | $ | (0.58 | ) |
| Loss      from discontinued operations                                     |   |                    | 0.00      |   |   |   | (0.65 | ) |
| Net      loss                                                              |   | $                       | (0.43     | ) |   | $ | (1.23 | ) |
|                                                                       |   |                    |      |   |   |   |   |   |
| Diluted      net loss per share:                                           |   |                    |      |   |   |   |   |   |
| Loss      from continuing operations                                       |   | $                       | (0.43     | ) |   | $ | (0.58 | ) |
| Loss      from discontinued operations                                     |   |                    | 0.00      |   |   |   | (0.65 | ) |
| Net      loss                                                              |   | $                       | (0.43     | ) |   | $ | (1.23 | ) |
|                                                                       |   |
| See      Notes to Condensed Consolidated Financial Statements              |   |

----

Table ofContents

CHARMING SHOPPES, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Thirty-nine Weeks Ended |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | October      31,        |    |   | November      1, |   |
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009                    |    |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   | (As      Adjusted) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   |   |   |
| Operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    |    |   |   |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                       | (49,940 | ) |   | $ | (141,280 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                    |    |   |   |   |   |   |
| Depreciation      and      amortization                                                                                                                                 |   |                    | 58,908  |   |   |   | 73,498 |   |
| Stock-based      compensation                                                                                                                                           |   |                    | 4,301   |   |   |   | 4,708 |   |
| Sale      of proprietary credit card receivables      programs                                                                                                          |   |                    | 13,379  |   |   |   | 0 |   |
| Net      loss/(gain) from disposition of capital      assets                                                                                                            |   |                    | 182     |   |   |   | (722 | ) |
| Net      loss/(gain) from securitization      activities                                                                                                                |   |                    | (2,465  | ) |   |   | 531 |   |
| Accretion      of discount on 1.125% Senior Convertible      Notes                                                                                                      |   |                    | 7,786   |   |   |   | 8,199 |   |
| Loss      on disposition of discontinued      operations                                                                                                                |   |                    | 0       |   |   |   | 46,736 |   |
| Impairment      of store      assets                                                                                                                                    |   |                    | 0       |   |   |   | 20,216 |   |
| Deferred      income      taxes                                                                                                                                         |   |                    | 2,536   |   |   |   | 11,025 |   |
| Gain      on repurchases of 1.125% Senior Convertible      Notes                                                                                                        |   |                    | (12,828 | ) |   |   | 0 |   |
| Write-down      of deferred taxes related to stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                    | 0       |   |   |   | (1,352 | ) |
| Write-down      of capital      assets                                                                                                                                  |   |                    | 8,935   |   |   |   | 2,456 |   |
| Changes      in operating assets and liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                    |    |   |   |   |   |   |
| Accounts      receivable,      net                                                                                                                                                          |   |                    | 29,200  |   |   |   | 29,058 |   |
| Merchandise      inventories                                                                                                                                                                |   |                    | (66,320 | ) |   |   | (65,430 | ) |
| Accounts      payable                                                                                                                                                                       |   |                    | 63,622  |   |   |   | 51,768 |   |
| Prepayments      and      other                                                                                                                                                             |   |                    | (13,369 | ) |   |   | (11,322 | ) |
| Accrued      expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | 5,395   |   |   |   | (8,971 | ) |
| Proceeds      from sale of retained interests in proprietary credit card      receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    | 85,050  |   |   |   | 0 |   |
| Net      cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                    | 134,372 |   |   |   | 19,118 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   |   |   |   |   |
| Investing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| Investment      in capital assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    | (16,313 | ) |   |   | (49,498 | ) |
| Proceeds      from sale of certificates related to proprietary credit card      receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                    | 51,250  |   |   |   | 0 |   |
| Proceeds      from sales of capital assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    | 1,719   |   |   |   | 4,813 |   |
| Net      proceeds from sale of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                    | 0       |   |   |   | 34,440 |   |
| Gross      purchases of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    | (2,448  | ) |   |   | (3,935 | ) |
| Proceeds      from sales of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                    | 8,588   |   |   |   | 11,651 |   |
| Decrease      in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                    | 4,357   |   |   |   | 6,635 |   |
| Net      cash provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                    | 47,153  |   |   |   | 4,106 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   |   |   |   |   |
| Financing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| Proceeds      from long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                    | 0       |   |   |   | 108 |   |
| Repayments      of long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                    | (5,076  | ) |   |   | (6,813 | ) |
| Repurchases      of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    | (39,323 | ) |   |   | 0 |   |
| Net      payments for settlements of hedges on convertible notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                    | (31     | ) |   |   | 0 |   |
| Payments      of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    | (7,308  | ) |   |   | (47 | ) |
| Purchases      of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                    | 0       |   |   |   | (10,969 | ) |
| Net      proceeds from shares issued under employee stock plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | 398     |   |   |   | 484 |   |
| Net      cash used by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    | (51,340 | ) |   |   | (17,237 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   |   |   |   |   |
| Increase      in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    | 130,185 |   |   |   | 5,987 |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    | 93,759  |   |   |   | 61,842 |   |
| Cash      and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                       | 223,944 |   |   | $ | 67,829 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |    |   |   |   |   |   |
| (Continued      on next page)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                    |    |   |   |   |   |   |

----

Table ofContents

|                                                          |   | Thirty-nine Weeks Ended |   |
|---------------------------------------------------------------|--------|-------------------------|--------|
|                                                          |   | October      31,        |   |   | November      1, |   |
| (In      thousands)                                           |   | 2009                    |   |   | 2008 |   |
|                                                          |   |                    |   |   | (As      Adjusted) |   |
|                                                          |   |                    |   |   |   |   |
| Non-cash      financing and investing activities              |   |                    |   |   |   |   |
| Assets      acquired through capital leases                   |   | $                       | 0      |   |   | $ | 5,959 |   |
|                                                          |   |
| See      Notes to Condensed Consolidated Financial Statements |   |

----

Table of Contents

Note 1. Condensed Consolidated FinancialStatements

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                       |   | Thirteen         |    |   | Thirty-nine      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                       |   | Weeks      Ended |    |   | Weeks      Ended |   |
|                                                                                                                                                                                                                                                                                                                       |   | November      1, |    |   | November      1, |   |
| (In      thousands)                                                                                                                                                                                                                                                                                                        |   | 2008(1)          |    |   | 2008(1)          |   |
|                                                                                                                                                                                                                                                                                                                       |   |             |    |   |             |   |
| Net      sales                                                                                                                                                                                                                                                                                                             |   | $                | 34,563  |   |             | $      | 155,811 |   |
|                                                                                                                                                                                                                                                                                                                       |   |             |    |   |             |   |   |   |
| Loss      from discontinued operations                                                                                                                                                                                                                                                                                     |   | $                | (11,177 | )(2)   |             | $      | (74,922 | )(2) |
| Income      tax benefit                                                                                                                                                                                                                                                                                                    |   |             | (12,698 | )(3)   |             |   | 0 |   |
| Loss      from discontinued operations, net of income tax benefit                                                                                                                                                                                                                                                          |   | $                | (23,875 | )      |             | $      | (74,922 | ) |
| ____________________                                                                                                                                                                                                                                                                                                       |   |
| (1)       Through September 18, 2008 (the date of sale).                                                                                                                                                                                                                                                              |   |
| (2)       Includes $7,209,000 of losses from operations and an increase of      $3,968,000 in the loss on disposition for the thirteen weeks ended      November 1, 2008, and $28,186,000 of losses from operations and a      $46,736,000 loss on disposition for the thirty-nine weeks ended November      1, 2008. |   |
| (3)       Reversal of previously recognized tax benefit as a result of our      recognition of a valuation allowance against net deferred tax      assets.                                                                                                                                                            |   |

----

Table of Contents

| 2004      Stock Award and Incentive Plan           |   |   | 2,321,480 |   |
|----------------------------------------------------|--------|--------|-----------|--------|
| 2003      Non-Employee Directors Compensation Plan |   |   | 161,897   |   |
| 1994      Employee Stock Purchase Plan             |   |   | 578,070   |   |
| 1988      Key Employee Stock Option Plan           |   |   | 122,105   |   |

----

Table of Contents

|                                                                 |   |   |      |   |    |   |   |               |   |   | Aggregate           |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|---------|--------|--------|--------------------|--------|--------|---------------------|--------|
|                                                                 |   |   |      |   | Average |   |   |               |   |   | Intrinsic           |   |
|                                                                 |   | Option |      |   | Option  |   |   | Option      Prices |   |   | Value(1)            |   |
|                                                                 |   | Shares |      |   | Price   |   |   | Per Share          |   |   |  (000’s) |   |
|                                                                 |   |   |      |   |    |   |   |               |   |   |                |   |   |   |   |   |   |   |   |
| Outstanding      at January 31, 2009                                 |   |   | 3,292,385 |   |    | $      | 5.09   |               |   | $      | 1.00                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 0 |   |
| Granted      – exercise price      equal to market price       |   |   | 4,771,540 |   |    |   | 1.74   |               |   |   | 0.99                |   |   |   | – |   |   |   | 5.72 |   |   |   |   |   |
| Canceled/forfeited                                                   |   |   | (513,894  | )      |    |   | 4.96   |               |   |   | 1.00                |   |   |   | – |   |   |   | 11.28 |   |   |   |   |   |
| Exercised                                                            |   |   | (7,260    | )      |    |   | 1.00   |               |   |   | 1.00                |   |   |   | – |   |   |   | 1.00 |   |   |   | 23 | (2) |
| Outstanding      at October 31, 2009                                 |   |   | 7,542,771 |   |    | $      | 2.99   |               |   | $      | 0.99                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 11,653 |   |
| Exercisable      at October 31, 2009                                 |   |   | 1,516,235 |   |    | $      | 5.82   |               |   | $      | 1.00                |   |   |   | – |   |   | $ | 13.84 |   |   | $ | 0 |   |
| ____________________                                                 |   |
| (1)       Aggregate market value less aggregate exercise price. |   |
| (2)       As of date of exercise.                               |   |

|                                                                                                                              |   | Thirteen Weeks Ended |   |   | Thirty-nine Weeks Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|
|                                                                                                                              |   | October      31,     |   |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
| (In      thousands)                                                                                                               |   | 2009                 |   |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                              |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Total      stock-based compensation expense                                                                                       |   | $                    | 1,327  |   |                    | $      | (306 | )(1) |   | $ | 4,301 |   |   | $ | 4,708 | (1) |
| ____________________                                                                                                              |   |
| (1)       Includes $955 reversal of previously recognized stock-based compensation      related to performance-based awards. |   |

----

Table of Contents

|                                 |   | October      31, |   |   | January      31, |   |
|--------------------------------------|--------|------------------|--------|--------|------------------|--------|
| (In      thousands)                  |   | 2009             |   |   | 2009             |   |
|                                 |   |             |   |   |             |   |
| Due      from customers              |   | $                | 6,117  |   |             | $      | 39,318 |   |
| Allowance      for doubtful accounts |   |             | (2,017 | )      |             |   | (6,018 | ) |
| Net      accounts receivable         |   | $                | 4,100  |   |             | $      | 33,300 |   |

|                                                   |   | October      31, |    |   | January      31, |   |
|--------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| (In      thousands)                                    |   | 2009             |    |   | 2009             |   |
|                                                   |   |             |    |   |             |   |
| Trademarks,      tradenames, and internet domain names |   | $                | 187,132 |   |             | $      | 187,132 |   |
| Customer      relationships, net                       |   |             | 0       |   |             |   | 233 |   |
| Net      trademarks and other intangible assets        |   | $                | 187,132 |   |             | $      | 187,365 |   |

|                                                              |   | October      31, |    |   | January      31,   |   |
|-------------------------------------------------------------------|--------|------------------|---------|--------|--------------------|--------|
| (In      thousands)                                               |   | 2009             |    |   | 2009               |   |
|                                                              |   |             |    |   | (As      Adjusted) |   |
|                                                              |   |             |    |   |               |   |
| 1.125%      Senior Convertible Notes, due May 2014                |   | $                | 205,757 |   |               | $      | 275,000 |   |
| Capital      lease obligations                                    |   |             | 11,192  |   |               |   | 14,041 |   |
| 6.07%      mortgage note, due October 2014                        |   |             | 9,954   |   |               |   | 10,419 |   |
| 6.53%      mortgage note, due November 2012                       |   |             | 4,200   |   |               |   | 5,250 |   |
| 7.77%      mortgage note, due December 2011                       |   |             | 6,729   |   |               |   | 7,249 |   |
| Other      long-term debt                                         |   |             | 230     |   |               |   | 422 |   |
| Total      long-term debt principal                               |   |             | 238,062 |   |               |   | 312,381 |   |
| Less      unamortized discount on 1.125% Senior Convertible Notes |   |             | (47,962 | )      |               |   | (72,913 | ) |
| Long-term      debt – carrying value                        |   |             | 190,100 |   |               |   | 239,468 |   |
| Current      portion                                              |   |             | (6,470  | )      |               |   | (6,746 | ) |
| Net      long-term debt                                           |   | $                | 183,630 |   |               | $      | 232,722 |   |

----

Table of Contents

|                                                        |   | October      31, |    |   | January      31, |   |
|-------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| (In      thousands)                                         |   | 2009             |    |   | 2009             |   |
|                                                        |   |             |    |   |             |   |
| Equity      component of 1.125% Senior Convertible Notes    |   | $                | 90,750  |   |             | $      | 91,715 |   |
|                                                        |   |             |    |   |             |   |   |   |
| Principal      value of 1.125% Senior Convertible Notes     |   | $                | 205,757 |   |             | $      | 275,000 |   |
| Unamortized      discount                                   |   |             | (47,962 | )      |             |   | (72,913 | ) |
| Liability      component of 1.125% Senior Convertible Notes |   | $                | 157,795 |   |             | $      | 202,087 |   |

----

Table of Contents

|                                                                                                                                                                                                                      |   | January      31, 2009 |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                                                                                                                                                                      |   | As      Previously    |      |   | Other |   |   | ASC      470-20 |   |   | As |   |
| (In      thousands)                                                                                                                                                                                                       |   | Reported              |      |   | Adjustments(1) |   |   | Adjustments |   |   | Adjusted |   |
|                                                                                                                                                                                                                      |   |                  |      |   |   |   |   |   |   |   |   |   |
| Deferred      taxes                                                                                                                                                                                                       |   | $                     | 4,066     |   |   |   |   |   | $ | (627 | )(2) |   | $ | 3,439 |   |
| Other      assets                                                                                                                                                                                                         |   |                  | 30,167    |   |   |   |   |   |   | (1,924 | )(3) |   |   | 28,243 |   |
| Total      assets                                                                                                                                                                                                         |   |                  | 1,279,692 |   |   |   |   |   |   | (2,551 | ) |   |   | 1,277,141 |   |
|                                                                                                                                                                                                                      |   |                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      taxes                                                                                                                                                                                                       |   |                  | 46,824    |   |   |   |   |   |   | (627 | )(2) |   |   | 46,197 |   |
| Long-term      debt                                                                                                                                                                                                       |   |                  | 305,635   |   |   |   |   |   |   | (72,913 | )(4) |   |   | 232,722 |   |
| Additional      paid-in capital                                                                                                                                                                                           |   |                  | 411,623   |   |   | $ | 30,208 |   |   |   | 56,720 | (5) |   |   | 498,551 |   |
| Retained      earnings                                                                                                                                                                                                    |   |                  | 386,620   |   |   |   | (30,208 | ) |   |   | 14,269 | (6) |   |   | 370,681 |   |
| Total      stockholders’ equity                                                                                                                                                                                     |   |                  | 465,866   |   |   |   |   |   |   |   | 70,989 |   |   |   | 536,855 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                     |   |                  | 1,279,692 |   |   |   |   |   |   |   | (2,551 | ) |   |   | 1,277,141 |   |
| ____________________                                                                                                                                                                                                      |   |
| (1)       Correction of accounting for deferred taxes related to purchased call      option (see “Note 1.      Condensed Consolidated Financial Statements; Change in Accounting      Principle” above). |   |
| (2)       Reallocation of deferred taxes.                                                                                                                                                                            |   |
| (3)       Cumulative adjustment to debt issuance costs related to 1.125%      Notes.                                                                                                                                 |   |
| (4)       Unamortized discount as of January 31, 2009.                                                                                                                                                               |   |
| (5)       Equity component of 1.125% Notes and debt issuance costs.                                                                                                                                                  |   |
| (6)       Cumulative impact of amortization of debt discount and amortization of      equity component of debt issuance costs, net of tax    benefit.                                                                |   |

|                               |   | Thirteen Weeks Ended |   |   | Thirty-nine Weeks Ended |   |
|------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|
|                               |   | October      31,     |   |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
| (Dollars      in thousands)        |   | 2009                 |   |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                               |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Contractual      interest expense  |   | $                    | 612    |   |                    | $      | 773 |   |   | $ | 2,057 |   |   | $ | 2,320 |   |
| Amortization      of debt discount |   |                 | 2,352  |   |                    |   | 2,782 |   |   |   | 7,786 |   |   |   | 8,199 |   |
| Total      interest expense        |   | $                    | 2,964  |   |                    | $      | 3,555 |   |   | $ | 9,843 |   |   | $ | 10,519 |   |
|                               |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Effective      interest rate       |   |                 | 7.4    | %      |                    |   | 7.4 | % |   |   | 7.4 | % |   |   | 7.4 | % |

----

Table of Contents

|                                                                                                                                                          |   | Before   |    |   | Adoption      of |   |   | As       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|------------------|--------|--------|----------|--------|
| (In      thousands, except per-share amounts)                                                                                                                 |   | Adoption |    |   | ASC 470-20       |   |   | Adjusted |   |
|                                                                                                                                                          |   |     |    |   |             |   |   |     |   |
| Thirteen      weeks ended October 31, 2009                                                                                                                    |   |     |    |   |             |   |   |     |   |
| Interest      expense                                                                                                                                         |   | $        | 2,562   |   |             | $      | 2,260  | (1)      |   | $ | 4,822 |   |
| Income      tax provision                                                                                                                                     |   |     | 4,934   |   |             |   | 0      |     |   |   | 4,934 |   |
| Loss      from continuing operations                                                                                                                          |   |     | (46,102 | )      |             |   | (2,260 | )        |   |   | (48,362 | ) |
| Net      loss                                                                                                                                                 |   |     | (46,102 | )      |             |   | (2,260 | )        |   |   | (48,362 | ) |
| Basic      net loss per share                                                                                                                                 |   |     | (0.40   | )      |             |   | (0.02  | )        |   |   | (0.42 | ) |
| Diluted      net loss per share                                                                                                                               |   |     | (0.40   | )      |             |   | (0.02  | )        |   |   | (0.42 | ) |
|                                                                                                                                                          |   |     |    |   |             |   |   |     |   |   |   |   |
| Thirty-nine      weeks ended October 31, 2009                                                                                                                 |   |     |    |   |             |   |   |     |   |   |   |   |
| Interest      expense                                                                                                                                         |   | $        | 6,816   |   |             | $      | 7,511  | (1)      |   | $ | 14,327 |   |
| Income      tax provision                                                                                                                                     |   |     | 10,318  |   |             |   | 0      |     |   |   | 10,318 |   |
| Loss      from continuing operations                                                                                                                          |   |     | (42,429 | )      |             |   | (7,511 | )        |   |   | (49,940 | ) |
| Net      loss                                                                                                                                                 |   |     | (42,429 | )      |             |   | (7,511 | )        |   |   | (49,940 | ) |
| Basic      net loss per share(2)                                                                                                                         |   |     | (0.37   | )      |             |   | (0.07  | )        |   |   | (0.43 | ) |
| Diluted      net loss per share(2)                                                                                                                       |   |     | (0.37   | )      |             |   | (0.07  | )        |   |   | (0.43 | ) |
| ____________________                                                                                                                                          |   |
| (1)       Amortization of the debt discount related to the 1.125% Notes less      amortization of debt issue costs related to the equity      component. |   |
| (2)       Results do not add across due to rounding.                                                                                                     |   |

----

Table of Contents

|                                                                                                                                                                                                                      |   | As      Previously |     |   | Other          |   |    | Adoption      of |   |   | As       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|----------------|--------|---------|------------------|--------|--------|----------|--------|
| (In      thousands, except per-share amounts)                                                                                                                                                                             |   | Reported           |     |   | Adjustments(1) |   |    | ASC 470-20       |   |   | Adjusted |   |
|                                                                                                                                                                                                                      |   |               |     |   |           |   |    |             |   |   |     |   |
| Thirteen      weeks ended November 1, 2008                                                                                                                                                                                |   |               |     |   |           |   |    |             |   |   |     |   |
| Interest      expense                                                                                                                                                                                                     |   | $                  | 2,172    |   |           |   |    |             | $      | 2,690  | (2)      |   | $ | 4,862 |   |
| Income      tax benefit                                                                                                                                                                                                   |   |               | (11,269  | )      |           | $      | 27,283  |             |   |   | (27,872  | )(3)   |   |   | (11,858 | ) |
| Loss      from continuing operations                                                                                                                                                                                      |   |               | (57,785  | )      |           |   | (27,283 | )                |   |   | 25,182   |   |   |   | (59,886 | ) |
| Net      loss                                                                                                                                                                                                             |   |               | (81,660  | )      |           |   | (27,283 | )                |   |   | 25,182   |   |   |   | (83,761 | ) |
| Basic      net loss per share:                                                                                                                                                                                            |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Continuing operations                                                                                                                                                                                                     |   |               | (0.50    | )      |           |   | (0.24   | )                |   |   | 0.22     |   |   |   | (0.52 | ) |
| Net loss                                                                                                                                                                                                                  |   |               | (0.71    | )      |           |   | (0.24   | )                |   |   | 0.22     |   |   |   | (0.73 | ) |
| Diluted      net loss per share:                                                                                                                                                                                          |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Continuing operations                                                                                                                                                                                                     |   |               | (0.50    | )      |           |   | (0.24   | )                |   |   | 0.22     |   |   |   | (0.52 | ) |
| Net loss                                                                                                                                                                                                                  |   |               | (0.71    | )      |           |   | (0.24   | )                |   |   | 0.22     |   |   |   | (0.73 | ) |
|                                                                                                                                                                                                                      |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Thirty-nine      weeks ended November 1, 2008                                                                                                                                                                             |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Interest      expense                                                                                                                                                                                                     |   | $                  | 6,742    |   |           |   |    |             |   | $      | 7,923    | (2)    |   | $ | 14,665 |   |
| Income      tax benefit                                                                                                                                                                                                   |   |               | (12,914  | )      |           | $      | 27,293  |             |   |   | (29,696  | )(3)   |   |   | (15,317 | ) |
| Loss      from continuing operations                                                                                                                                                                                      |   |               | (60,838  | )      |           |   | (27,293 | )                |   |   | 21,773   |   |   |   | (66,358 | ) |
| Net      loss                                                                                                                                                                                                             |   |               | (135,760 | )      |           |   | (27,293 | )                |   |   | 21,773   |   |   |   | (141,280 | ) |
| Basic      net loss per share:                                                                                                                                                                                            |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Continuing operations                                                                                                                                                                                                     |   |               | (0.53    | )      |           |   | (0.24   | )                |   |   | 0.19     |   |   |   | (0.58 | ) |
| Net loss                                                                                                                                                                                                                  |   |               | (1.18    | )      |           |   | (0.24   | )                |   |   | 0.19     |   |   |   | (1.23 | ) |
| Diluted      net loss per share:                                                                                                                                                                                          |   |               |     |   |           |   |    |             |   |   |     |   |   |   |   |   |
| Continuing operations                                                                                                                                                                                                     |   |               | (0.53    | )      |           |   | (0.24   | )                |   |   | 0.19     |   |   |   | (0.58 | ) |
| Net loss                                                                                                                                                                                                                  |   |               | (1.18    | )      |           |   | (0.24   | )                |   |   | 0.19     |   |   |   | (1.23 | ) |
| ____________________                                                                                                                                                                                                      |   |
| (1)       Correction of accounting for deferred taxes related to purchased call      option (see “Note      1. Condensed Consolidated Financial Statements; Change in Accounting      Principle” above). |   |
| (2)       Amortization of the debt discount related to the 1.125% Notes less      amortization of debt issue costs related to the equity      component.                                                             |   |
| (3)       Tax effect of adoption of ASC 470-20.                                                                                                                                                                      |   |

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                                                                                                                         |   | Thirty-nine      |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                                                                                                                                                                                                                         |   | Weeks      Ended |    |
|                                                                                                                                                                                                                                                                         |   | October      31, |    |
| (Dollars      in thousands)                                                                                                                                                                                                                                                  |   | 2009             |    |
|                                                                                                                                                                                                                                                                         |   |             |    |
| Total      stockholders’ equity, beginning of period (as adjusted)                                                                                                                                                                                                     |   | $                | 536,855 | (1) |
| Net      loss                                                                                                                                                                                                                                                                |   |             | (49,940 | ) |
| Issuance      of common stock (616,520 shares), net of shares withheld for payroll      taxes                                                                                                                                                                                |   |             | 398     |   |
| Stock-based      compensation                                                                                                                                                                                                                                                |   |             | 4,301   |   |
| Net      payments for settlement of hedges on convertible notes                                                                                                                                                                                                              |   |             | (31     | )(2) |
| Equity      component of repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                      |   |             | (965    | )(2) |
| Unrealized      losses on available-for-sale securities                                                                                                                                                                                                                      |   |             | (5      | ) |
| Total      stockholders’ equity, end of period                                                                                                                                                                                                                         |   | $                | 490,613 |   |
| ____________________                                                                                                                                                                                                                                                         |   |
| (1)       We adopted the provisions of ASC 470-20 retrospectively as of the      beginning of Fiscal 2009 and recognized a net increase in stockholders’      equity of $70,989,000 as of January 31, 2009 (see “Note 4. Long-term Debt”      above). |   |
| (2)       See “Note 4. Long-term      Debt” above.                                                                                                                                                                                                          |   |

----

Table of Contents

|                                                                                                                                                                                         |   | Thirteen Weeks Ended |    |   | Thirty-nine Weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-------------------------|--------|
|                                                                                                                                                                                         |   | October      31,     |    |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
| (In      thousands, except per share amounts)                                                                                                                                                |   | 2009                 |    |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                         |   |                 |    |   | (As      Adjusted)      |   |   |   |   |   | (As      Adjusted) |   |
|                                                                                                                                                                                         |   |                 |    |   |                    |   |   |   |   |   |   |   |
| Basic      weighted average common shares outstanding                                                                                                                                        |   |                 | 115,816 |   |                    |   | 114,877 |   |   |   | 115,536 |   |   |   | 114,602 |   |
| Dilutive      effect of stock options, stock appreciation rights, and awards(1)                                                                                                              |   |                 | 0       |   |                    |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Diluted      weighted average common shares and equivalents outstanding                                                                                                                      |   |                 | 115,816 |   |                    |   | 114,877 |   |   |   | 115,536 |   |   |   | 114,602 |   |
|                                                                                                                                                                                         |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                                                                                                                         |   | $                    | (48,362 | )      |                    | $      | (59,886 | ) |   | $ | (49,940 | ) |   | $ | (66,358 | ) |
| Loss      from discontinued operations, net of income tax benefit                                                                                                                            |   |                 | 0       |   |                    |   | (23,875 | ) |   |   | 0 |   |   |   | (74,922 | ) |
|                                                                                                                                                                                         |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss used to determine diluted net loss per share                                                                                                                                   |   | $                    | (48,362 | )      |                    | $      | (83,761 | ) |   | $ | (49,940 | ) |   | $ | (141,280 | ) |
|                                                                                                                                                                                         |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Options      with weighted average exercise price greater                                                                                                                                    |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| than market price, excluded from      computation of net                                                                                                                                     |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| loss per share:(1)                                                                                                                                                                           |   |                 |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Number      of shares                                                                                                                                                                        |   |                 | – |   |                    |   | – |   |   |   | – |   |   |   | – |   |
| Weighted      average exercise price per share                                                                                                                                               |   |                 | – |   |                    |   | – |   |   |   | – |   |   |   | – |   |
| ____________________                                                                                                                                                                         |   |
| (1)       Stock options, stock appreciation rights, and awards are excluded from the      computation of diluted net loss per share as their effect would have been      anti-dilutive. |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Thirty-nine Weeks Ended |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | October      31,        |    |   | November      1, |   |
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009(1)                 |    |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    |    |   |   |   |
| Proceeds      from sales of new receivables to      QSPE                                                                                                                          |   | $                       | 530,544 |   |   | $ | 674,817 |   |
| Collections      reinvested in revolving-period      securitizations                                                                                                              |   |                    | 667,611 |   |   |   | 829,188 |   |
| Cash      flows received on retained      interests                                                                                                                               |   |                    | 68,326  |   |   |   | 82,679 |   |
| Servicing      fees      received                                                                                                                                                 |   |                    | 7,228   |   |   |   | 8,590 |   |
| Net      credit      losses                                                                                                                                                       |   |                    | 37,035  |   |   |   | 34,027 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    |    |   |   |   |   |   |
| (1)       Through October 30, 2009 (the date of sale of the proprietary credit card      receivables programs).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |

| ● | We      recorded gains or losses on the securitization of our proprietary credit      card receivables based on the estimated fair value of the assets retained      and liabilities incurred in the sale.  Gains represented the      present value of the estimated cash flows that we retained over the      estimated outstanding period of the receivables.  This excess      cash flow essentially represented an I/O strip, consisting of the present      value of the finance charges and late fees in excess of the amounts paid      to certificate holders, credit losses, and servicing  fees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ● | We      used various valuation assumptions in determining the fair value of our      I/O strip.  We estimated the values for these assumptions using      historical data, the impact of the current economic environment on the      performance of the receivables sold, and the impact of the potential      volatility of the current market for similar instruments in assessing the      fair value of the retained interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ● | In      addition, we recognized a servicing liability because the servicing fees      we expected to receive from the securitizations did not provide adequate      compensation for servicing the receivables.  The servicing      liability represented the present value of the excess of our cost of      servicing over the servicing fees received and was recorded at its      estimated fair value.  Because quoted market prices were      generally not available for the servicing of proprietary credit card      portfolios of comparable credit quality, we determined the fair value of      the cost of servicing by calculating all costs associated with billing,      collecting, maintaining, and providing customer service during the      expected life of the securitized credit card receivable      balances.  We discounted the amount of these costs in excess of      the servicing fees over the estimated life of the receivables sold. The discount rate      and estimated life assumptions used for the present value calculation of      the servicing liability were consistent with those used for the I/O      strip. |

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                 |   | Retail |      |   | Direct-to- |   |    | Corporate |   |   |         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|---------|-----------|--------|--------|--------------|--------|
| (In      thousands)                                                                                                                                                                                                                                                                                                                                                  |   | Stores |      |   | Consumer   |   |    | and Other |   |   | Consolidated |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |       |   |    |      |   |   |         |   |
| Thirteen      weeks ended October 31, 2009                                                                                                                                                                                                                                                                                                                           |   |   |      |   |       |   |    |      |   |   |         |   |
| Net      sales                                                                                                                                                                                                                                                                                                                                                       |   | $      | 448,298   |   |       | $      | 9,419   |      |   | $      | 2,520        |   |   | $ | 460,237 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                   |   |   | 12,829    |   |       |   | 227     |      |   |   | 5,204        |   |   |   | 18,260 |   |
| Loss      from operations                                                                                                                                                                                                                                                                                                                                            |   |   | 3,715     |   |       |   | (3,968  | )         |   |   | (39,815      | )(1)   |   |   | (40,068 | ) |
| Gain      on repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                                          |   |   |      |   |       |   |    |      |   |   | 1,264        |   |   |   | 1,264 |   |
| Net      interest expense and other income                                                                                                                                                                                                                                                                                                                           |   |   |      |   |       |   |    |      |   |   | (4,624       | )      |   |   | (4,624 | ) |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                            |   |   |      |   |       |   |    |      |   |   | 4,934        |   |   |   | 4,934 |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                        |   |   | 3,715     |   |       |   | (3,968  | )         |   |   | (48,109      | )      |   |   | (48,362 | ) |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                            |   |   | 2,426     |   |       |   | 0       |      |   |   | 4,121        |   |   |   | 6,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Thirteen      weeks ended November 1, 2008 (As adjusted)                                                                                                                                                                                                                                                                                                             |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Net      sales                                                                                                                                                                                                                                                                                                                                                       |   | $      | 528,501   |   |       | $      | 21,311  |      |   | $      | 3,254        |   |   | $ | 553,066 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                   |   |   | 14,979    |   |       |   | 228     |      |   |   | 7,924        |   |   |   | 23,131 |   |
| Loss      from operations                                                                                                                                                                                                                                                                                                                                            |   |   | (12,104   | )      |       |   | (6,077  | )         |   |   | (50,577      | )(2)   |   |   | (68,758 | ) |
| Net      interest expense and other income                                                                                                                                                                                                                                                                                                                           |   |   |      |   |       |   |    |      |   |   | (2,986       | )      |   |   | (2,986 | ) |
| Income      tax benefit                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |       |   |    |      |   |   | (11,858      | )      |   |   | (11,858 | ) |
| Loss      from continuing operations                                                                                                                                                                                                                                                                                                                                 |   |   | (12,104   | )      |       |   | (6,077  | )         |   |   | (41,705      | )      |   |   | (59,886 | ) |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                            |   |   | 9,314     |   |       |   | 78      |      |   |   | 1,633        |   |   |   | 11,025 | (3) |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Thirty-nine      weeks ended October 31, 2009                                                                                                                                                                                                                                                                                                                        |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Net      sales                                                                                                                                                                                                                                                                                                                                                       |   | $      | 1,482,118 |   |       | $      | 35,222  |      |   | $      | 8,250        |   |   | $ | 1,525,590 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                   |   |   | 38,338    |   |       |   | 667     |      |   |   | 18,529       |   |   |   | 57,534 |   |
| Loss      from operations                                                                                                                                                                                                                                                                                                                                            |   |   | 67,210    |   |       |   | (11,578 | )         |   |   | (94,434      | )(4)   |   |   | (38,802 | ) |
| Gain      on repurchases of 1.125% Senior Convertible Notes                                                                                                                                                                                                                                                                                                          |   |   |      |   |       |   |    |      |   |   | 12,828       |   |   |   | 12,828 |   |
| Net      interest expense and other income                                                                                                                                                                                                                                                                                                                           |   |   |      |   |       |   |    |      |   |   | (13,648      | )      |   |   | (13,648 | ) |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                            |   |   |      |   |       |   |    |      |   |   | 10,318       |   |   |   | 10,318 |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                        |   |   | 67,210    |   |       |   | (11,578 | )         |   |   | (105,572     | )      |   |   | (49,940 | ) |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                            |   |   | 7,574     |   |       |   | 6       |      |   |   | 8,733        |   |   |   | 16,313 |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
|          Thirty-nine weeks ended November 1, 2008 (As adjusted)                                                                                                                                                                                                                                                                                       |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Net      sales                                                                                                                                                                                                                                                                                                                                                       |   | $      | 1,762,604 |   |       | $      | 70,804  |      |   | $      | 9,620        |   |   | $ | 1,843,028 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                   |   |   | 43,417    |   |       |   | 672     |      |   |   | 28,541       |   |   |   | 72,630 | (6) |
| Loss      from operations                                                                                                                                                                                                                                                                                                                                            |   |   | 69,473    |   |       |   | (16,244 | )         |   |   | (123,422     | )(5)   |   |   | (70,193 | ) |
| Net      interest expense and other income                                                                                                                                                                                                                                                                                                                           |   |   |      |   |       |   |    |      |   |   | (11,482      | )      |   |   | (11,482 | ) |
| Income      tax benefit                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |       |   |    |      |   |   | (15,317      | )      |   |   | (15,317 | ) |
| Loss      from continuing operations                                                                                                                                                                                                                                                                                                                                 |   |   | 69,473    |   |       |   | (16,244 | )         |   |   | (119,587     | )      |   |   | (66,358 | ) |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                            |   |   | 41,473    |   |       |   | 354     |      |   |   | 7,190        |   |   |   | 49,017 | (6) |
| ____________________                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| (1)       Includes restructuring and other charges of $14,746 (see “Note 13. Restructuring and      Other Charges” below) and one-time net charges as a result of the      sale of our proprietary credit card receivables programs of $13,379 (see      “Note 9. Sale of      Proprietary Credit Card Receivables Programs”    above). |   |
| (2)       Includes restructuring and other charges of $6,391 and impairment of store      assets of $20,216 (see “Note 12. Impairment of Store      Assets” and “Note      13. Restructuring and Other Charges” below).                                                                                                            |   |
| (3)       Excludes $14 of capital expenditures related to our discontinued      operations.                                                                                                                                                                                                                                                                     |   |
| (4)       Includes restructuring and other charges of $31,219 (see “Note 13. Restructuring and      Other Charges” below) and one-time net charges as a result of the      sale of our proprietary credit card receivables programs of $13,379 (see      “Note 9. Sale of      Proprietary Credit Card Receivables Programs”    above). |   |
| (5)       Includes restructuring and other charges of $24,947 and impairment of      store assets of $20,216 (see “Note 12. Impairment of Store      Assets” and “Note      13. Restructuring and Other Charges” below).                                                                                                           |   |
| (6)       Excludes $777 of depreciation and amortization and $481 of capital      expenditures related to our discontinued operations.                                                                                                                                                                                                                          |   |

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                |   |            |   |   | Costs      Incurred  |   |   |        |   |   |             |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|----------------------|--------|--------|-------------|--------|--------|------------------|--------|
|                                                                                                                                                                |   | Accrued         |   |   | for      Thirty-nine |   |   |        |   |   | Accrued          |   |
|                                                                                                                                                                |   | as      of      |   |   | Weeks      Ended     |   |   |        |   |   | as      of       |   |
|                                                                                                                                                                |   | January      31 |   |   | October      31,     |   |   | Payments/   |   |   | October      31, |   |
|        (In thousands)                                                                                                                                          |   | 2009(1)         |   |   | 2009                 |   |   | Settlements |   |   | 2009(1)          |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |
|        Fiscal 2007 Announcements                                                                                                                               |   |            |   |   |                 |   |   |        |   |   |             |   |
|        Relocation of CATHERINES operations:                                                                                                                    |   |            |   |   |                 |   |   |        |   |   |             |   |
| Relocation      and other charges                                                                                                                                   |   | $               | 0      |   |                 | $      | 212    |        |   | $      | 212              |   |   | $ | 0 |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        Closing of under-performing stores:                                                                                                                     |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
| Store      lease termination charges                                                                                                                                |   |            | 1,687  |   |                 |   | 1,145  |        |   |   | 1,129            |   |   |   | 1,703 |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        Fiscal 2008 Announcements                                                                                                                               |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        Severance and retention costs(2)                                                                                                                   |   |            | 9,891  |   |                 |   | 763    |        |   |   | 3,870            |   |   |   | 6,784 |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        Non-core misses apparel assets:                                                                                                                         |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
| Lease      termination charges                                                                                                                                      |   |            | 0      |   |                 |   | 12,131 |        |   |   | 568              |   |   |   | 11,563 |   |
| Other      costs                                                                                                                                                    |   |            | 420    |   |                 |   | 0      |        |   |   | 79               |   |   |   | 341 |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        Transformational initiatives:                                                                                                                           |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
| Professional      fees                                                                                                                                              |   |            | 1,379  |   |                 |   | 7,078  |        |   |   | 7,340            |   |   |   | 1,117 |   |
| Severance      and retention costs                                                                                                                                  |   |            | 0      |   |                 |   | 1,002  |        |   |   | 205              |   |   |   | 797 |   |
|                                                                                                                                                                |   |            |   |   |                 |   |   |        |   |   |             |   |   |   |   |   |
|        figure®      magazine closing costs                                                                                                           |   |            | 819    |   |                 |   | (48    | )           |   |   | 766              |   |   |   | 5 |   |
|  Total                                                                                                                                                         |   | $               | 14,196 |   |                 | $      | 22,283 |        |   | $      | 14,169           |   |   | $ | 22,310 |   |
|  ____________________                                                                                                                                          |   |
|  (1)       Included in “Accrued expenses” in the accompanying 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. |   |

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   | Total            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|----------------------|--------|--------|------------|--------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                           |   | Costs            |   |   | Costs      Incurred  |   |   | Estimated  |   |   | Estimated/       |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   | Incurred         |   |   | for      Thirty-nine |   |   | Remaining  |   |   | Actual           |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   | As      of       |   |   | Weeks      Ended     |   |   | Costs      |   |   | Costs      as of |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   | January      31, |   |   | October      31,     |   |   | to      be |   |   | October      31, |   |
|        (In thousands)                                                                                                                                                                                                                                                                                                                                                                     |   | 2009             |   |   | 2009                 |   |   | Incurred   |   |   | 2009             |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |
|        Fiscal 2007 Announcements                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |                 |   |   |       |   |   |             |   |
|        Relocation of CATHERINES operations:                                                                                                                                                                                                                                                                                                                                               |   |             |   |   |                 |   |   |       |   |   |             |   |
| Severance      and retention      costs                                                                                         |   | $                | 2,079  |   |                 | $      | 0      |       |   | $      | 0                |   |   | $ | 2,079 |   |
| Non-cash      write down and accelerated                                                                                                                                                                                                                                                                                                                                                       |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
| Depreciation                                                                                                                    |   |             | 3,808  |   |                 |   | 0      |       |   |   | 0                |   |   |   | 3,808 |   |
| Relocation      and other      charges                                                                                          |   |             | 1,166  |   |                 |   | 212    |       |   |   | 0                |   |   |   | 1,378 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Closing of under-performing stores:                                                                                                                                                                                                                                                                                                                                                |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
| Non-cash      accelerated depreciation                                                                                                                                                                                                                                                                                                                                                         |   |             | 691    |   |                 |   | 170    |       |   |   | 0                |   |   |   | 861 |   |
| Store      lease termination      charges                                                                                       |   |             | 6,909  |   |                 |   | 1,145  |       |   |   | 0                |   |   |   | 8,054 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Severance and retention costs related to                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        the elimination of      positions                                                          |   |             | 1,244  |   |                 |   | 0      |       |   |   | 0                |   |   |   | 1,244 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Fiscal 2008 Announcements                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Severance for departure of former CEO                                                                                                                                                                                                                                                                                                                                              |   |             | 9,446  |   |                 |   | 104    |       |   |   | 38               |   |   |   | 9,588 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Closing of LANE BRYANT WOMAN                                                                                                                                                                                                                                                                                                                                                       |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Catalog:                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
| Severance      and retention      costs                                                                                         |   |             | 1,557  |   |                 |   | 504    |       |   |   | 0                |   |   |   | 2,061 |   |
| Non-cash      accelerated depreciation                                                                                                                                                                                                                                                                                                                                                         |   |             | 934    |   |                 |   | 838    |       |   |   | 0                |   |   |   | 1,772 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Severance and retention costs related to                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        the elimination of      positions                                                          |   |             | 3,873  |   |                 |   | 155    |       |   |   | 0                |   |   |   | 4,028 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Non-core misses apparel assets:                                                                                                                                                                                                                                                                                                                                                    |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
| Non-cash      accelerated depreciation                                                                                                                                                                                                                                                                                                                                                         |   |             | 2,968  |   |                 |   | 7,928  |       |   |   | 0                |   |   |   | 10,896 |   |
| Lease      termination      charges                                                                                             |   |             | 0      |   |                 |   | 12,131 |       |   |   | 1,177            |   |   |   | 13,308 |   |
| Other      costs                                                                                                                |   |             | 420    |   |                 |   | 0      |       |   |   | 0                |   |   |   | 420 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        Transformational initiatives:                                                                                                                                                                                                                                                                                                                                                      |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
| Professional      fees                                                                                                          |   |             | 2,563  |   |                 |   | 7,078  |       |   |   | 0                |   |   |   | 9,641 |   |
| Severance      and retention      costs                                                                                         |   |             | 0      |   |                 |   | 1,002  |       |   |   | 35               |   |   |   | 1,037 |   |
|                                                                                                                                                                                                                                                                                                                                                                                           |   |             |   |   |                 |   |   |       |   |   |             |   |   |   |   |   |
|        figure magazine closing      costs                                                         |   |             | 819    |   |                 |   | (48    | )          |   |   | 0                |   |   |   | 771 |   |
|        Total                                                                                      |   | $                | 38,477 |   |                 | $      | 31,219 |       |   | $      | 1,250            |   |   | $ | 70,946 |   |

----

Table of Contents

| ● | 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       |   |   | Fair      Value |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|
|                                                                                                                                                                                                                                              |   | October      31, |   |   | Method Used     |   |
|  (In      thousands)                                                                                                                                                                                                                         |   | 2009             |   |   | Level 2         |   |
|                                                                                                                                                                                                                                              |   |             |   |   |            |   |
|  Assets                                                                                                                                                                                                                                      |   |             |   |   |            |   |
|  Available-for-sale      securities(1)                                                                                                                                                                                                       |   | $                | 400    |   |            | $      | 400 |   |
| ____________________                                                                                                                                                                                                                              |   |
|  (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. |   |

----

Table of Contents

|                                                                      |   | Retained  |     |   | Servicing |   |
|---------------------------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|
|  (In      thousands)                                                 |   | Interests |     |   | Liability |   |
|                                                                      |   |      |     |   |      |   |
|  Balance,      January 31, 2009                                      |   | $         | 94,453   |   |      | $      | 3,046 |   |
|  Additions      to I/O strip and servicing liability                 |   |      | 24,341   |   |      |   | 2,977 |   |
|  Net      additions to other retained interests                      |   |      | 39,964   |   |      |   | 0 |   |
|  Reductions      and maturities of QSPE certificates                 |   |      | (150     | )      |      |   | 0 |   |
|  Amortization      of the I/O strip and servicing liability          |   |      | (26,865  | )      |      |   | (3,149 | ) |
|  Valuation      adjustments to the I/O strip and servicing liability |   |      | 4,939    |   |      |   | 110 |   |
|  Sale      of asset securitization program assets and liabilities    |   |      | (136,682 | )      |      |   | (2,984 | ) |
|  Balance,      October 31, 2009                                      |   | $         | 0        |   |      | $      | 0 |   |

|                                                                                                                                                                        |   | October 31, 2009 |    |   | January 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
|                                                                                                                                                                        |   | Carrying         |    |   | Fair             |   |   | Carrying |   |   | Fair |   |
|  (In      thousands)                                                                                                                                                   |   | Amount           |    |   | Value            |   |   | Amount |   |   | Value |   |
|                                                                                                                                                                        |   |             |    |   |             |   |   |   |   |   |   |   |
|  Assets:                                                                                                                                                               |   |             |    |   |             |   |   |   |   |   |   |   |
|  Cash      and cash equivalents                                                                                                                                        |   | $                | 223,944 |   |             | $      | 223,944 |   |   | $ | 93,759 |   |   | $ | 93,759 |   |
|  Available-for-sale      securities                                                                                                                                    |   |             | 400     |   |             |   | 400 |   |   |   | 6,398 |   |   |   | 6,398 |   |
|  Investment      in asset-backed securities                                                                                                                            |   |             | 0       |   |             |   | 0 |   |   |   | 94,453 |   |   |   | 94,453 |   |
|                                                                                                                                                                        |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities:                                                                                                                                                          |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|  1.125%      Senior Convertible Notes, due 2014                                                                                                                        |   |             | 157,795 | (1)    |             |   | 146,129 |   |   |   | 202,087 | (1) |   |   | 75,295 |   |
|  6.07%      mortgage note, due October 2014                                                                                                                            |   |             | 9,954   |   |             |   | 9,209 |   |   |   | 10,419 |   |   |   | 11,330 |   |
|  6.53%      mortgage note, due November 2012                                                                                                                           |   |             | 4,200   |   |             |   | 4,098 |   |   |   | 5,250 |   |   |   | 5,493 |   |
|  7.77%      mortgage note, due December 2011                                                                                                                           |   |             | 6,729   |   |             |   | 6,731 |   |   |   | 7,249 |   |   |   | 7,959 |   |
|  Other      long-term debt                                                                                                                                             |   |             | 230     |   |             |   | 248 |   |   |   | 422 |   |   |   | 414 |   |
|  ____________________                                                                                                                                                  |   |
|  (1)       Net of unamortized discount of $47,962 at October 31, 2009 and $72,913 at      January 31, 2009 (see “Note 4. Long-term Debt”      above). |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table ofContents

Item 2.

FORWARD-LOOKING

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

----

Table ofContents

| ●             | We      cannot assure the successful implementation of our business plan for the      development of our core brands, the increased profitability and growth in      our Retail Stores or Direct-to-Consumer segments, or that we will achieve      our objectives as quickly or as effectively as we plan.  We may      be unable to successfully implement our plan to improve merchandise      assortments.  Recent changes in management may fail to achieve      improvement in our operating results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ●             | A      continuing slowdown in the United States economy, an uncertain economic      outlook, and fluctuating energy costs could lead to reduced consumer      demand for our products in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ●             | 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.  We may be unable to obtain      adequate insurance for our operations at a reasonable  cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        ● | 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 our strategic alliance      related to 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 are 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 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 portfolio on October 30,      2009.  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 and which 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. |

----

Table ofContents

| ● | 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.                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | 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 results of operations,      liquidity, or our ability to provide adequate financial and management      reporting. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | Our      business plan is largely dependent upon continued growth in the plus-size      women’s apparel market, which may not occur.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | We      depend on our distribution and fulfillment centers and third-party freight      consolidators and service providers for prompt and efficient deliveries of      merchandise to our stores and customers, and could incur significantly      higher costs and longer lead times associated with distributing our      products to our stores and shipping our products to our e-commerce and      catalog customers if operations at any of these locations were to be      disrupted for any reason.                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | Successful      operation of our e-commerce websites and our catalog business is dependent      on our ability to maintain efficient and uninterrupted customer service      and fulfillment operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | We      rely significantly on foreign sources of production and face a variety of      risks generally associated with doing business in foreign markets and      importing merchandise from abroad.  Such risks include (but are      not necessarily limited to) political instability; imposition of or      changes in duties or quotas; trade restrictions; increased security      requirements applicable to imports; delays in shipping; increased costs of      transportation; and issues relating to compliance with domestic or      international labor standards.                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | Our      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.                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

Table ofContents

| ● | 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.                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | We      may be unable to protect our trademarks and other intellectual property      rights, which are important to our success and our competitive      position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | 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      divestitures, joint ventures, or other alliances, our business, financial      condition, and operating results could be materially and adversely      affected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | Pursuant      to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to      include our assessment of the effectiveness of our internal control over      financial reporting in our annual reports.  Our independent      registered public accounting firm is also required to report on whether or      not they believe that we maintained, in all material respects, effective      internal control over financial reporting.  If we are unable to      maintain effective internal control over financial reporting we could be      subject to regulatory sanctions and a possible loss of public confidence      in the reliability of our financial reporting.  Such a failure      could result in our inability to provide timely and/or reliable financial      information and could adversely affect our business.                                                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | The      holders of our 1.125% Senior Convertible Notes due May 1, 2014 (the 1.125%      Notes) could require us to repurchase the principal amount of the notes      for cash before maturity of the notes upon the occurrence of a      “fundamental change” as defined in the prospectus filed in connection with      the 1.125% Notes.  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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | Changes      to existing accounting rules or the adoption of new rules could have an      adverse impact on our reported results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ● | We      make certain significant assumptions, estimates, and projections related      to the useful lives and valuation of our property, plant, and equipment      and the valuation of goodwill and other intangible assets related to      acquisitions.  The carrying amount and/or useful life of these      assets are subject to periodic and/or annual valuation tests for      impairment.  Impairment results when the carrying value of an      asset exceeds the undiscounted (or for goodwill and indefinite-lived      intangible assets the discounted) future cash flows associated with the      asset.  If actual experience were to differ materially from the      assumptions, estimates, and projections used to determine useful lives or      the valuation of property, plant, equipment, or intangible assets, a      write-down for impairment of the carrying value of the assets, or      acceleration of depreciation or amortization of the assets, could      result.  Such a write-down or acceleration of depreciation or      amortization could have an adverse impact on our reported results of      operations. |

----

Table ofContents

CRITICAL

RECENT

----

Table ofContents

OVERVIEW

----

Table ofContents

| ● | It      allows us to further focus on our core business;                                                                                                                      |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                          |
| ● | It      eliminates the financing risk associated with our proprietary credit card      receivables programs and the credit risk of the underlying credit card      portfolio; |
|    |                                                                                                                                                                          |
| ● | The      net cash proceeds to us of $136.3 million has strengthened our liquidity      and financial flexibility; and                                                         |
|    |                                                                                                                                                                          |
| ● | We      will receive ongoing payments from Alliance Data based on credit sales      generated by our private-label credit card  portfolio.                                    |

----

Table ofContents

| ● | We      are working to improve our marketing to insure a balance between marketing      to our current customers and to inactive and new customers.  We      believe we can better succeed by focusing on the basics of efficiently      driving traffic both to our stores and online, and by focusing on      increasing the conversion rate for customers in our stores and on our      websites.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ● | We      are focused on assortments planning and selling outfits.  We      believe we can better succeed by improving our buying and in-store      merchandising of appropriate assortments of bottoms, tops, accessories,      intimates, and related products.  We believe we can improve our      store traffic and conversion rates by providing the customer with a more      balanced assortment.  We know through customer research that      size and fit are the leading priority for our customer.  We are      working to leverage and improve our fit expertise and sizing approach to      strengthen our overall merchandise programs.  Additionally, we      are focused on offering a more balanced assortment with a stronger focus      on our core merchandise while also addressing the fashion needs of our      customers. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ● | We      are working to increase our internally designed and developed product and      we are transforming each of our core brands into more independent,      distinct brands.  During the Fiscal 2009 Third Quarter we added      global sourcing talent at each of our brands to assist in this process and      to better leverage our scale in order to deliver more efficient cost of      goods expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ● | We      are focused on increasing our e-commerce penetration across all of our      brands.  We overhauled each of our core brands’ websites and      successfully converted our core brands to a new e-commerce technology      platform during the beginning of the Fiscal 2009 Third      Quarter.  Our objective is to provide an improved on-line      customer experience that will result in increased website traffic and      sales conversion rates.                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ● | We      are committed to adopting a multi-channel mindset.  We will      encourage and make it easy for our customer to shop in three convenient      ways – in our stores, online, and via telephone.  We will also      be multi-vehicle in our communications with both existing and new      customers, whether via direct mail, email, online, or in our      stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

Table ofContents

RESULTS

|                                                                                                                                                                                                                                                                                                   |   |                    |    |   | Percentage       |   |    |                       |   |   | Percentage       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------|--------|---------|----------------------------|--------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | Thirteen Weeks Ended(1) |    |   | Change           |   |    | Thirty-nine Weeks Ended(1) |   |   | Change           |   |
|                                                                                                                                                                                                                                                                                                   |   | October      31,        |    |   | November      1, |   |    | From      Prior            |   |   | October      31, |   |   | November      1, |   |   | From      Prior |   |
|                                                                                                                                                                                                                                                                                                   |   | 2009                    |    |   | 2008             |   |    | Period                     |   |   | 2009             |   |   | 2008 |   |   | Period |   |
|                                                                                                                                                                                                                                                                                                   |   |                    |    |   |             |   |    |                       |   |   |             |   |   |   |   |   |   |   |
| Net      sales                                                                  |   |                    | 100.0   | %      |             |   | 100.0   | %                          |   |   | (16.8            | )%     |   |   | 100.0 | % |   |   | 100.0 | % |   |   | (17.2 | )% |
| Cost      of goods      sold                                                    |   |                    | 48.5    |   |             |   | 54.1    |                       |   |   | (25.3            | )      |   |   | 48.3 |   |   |   | 52.1 |   |   |   | (23.1 | ) |
| Gross      profit                                                               |   |                    | 51.5    |   |             |   | 45.9    |                       |   |   | (6.7             | )      |   |   | 51.7 |   |   |   | 47.9 |   |   |   | (10.8 | ) |
| Occupancy      and buying expenses                                                                                                                                                                                                                                                                     |   |                    | 20.6    |   |             |   | 19.3    |                       |   |   | (10.8            | )      |   |   | 19.5 |   |   |   | 17.3 |   |   |   | (6.7 | ) |
| Selling,      general, and                                                                                                                                                                                                                                                                             |   |                    |    |   |             |   |    |                       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Administrative      expenses                                                                   |   |                    | 29.4    |   |             |   | 30.1    |                       |   |   | (18.6            | )      |   |   | 28.0 |   |   |   | 28.1 |   |   |   | (17.4 | ) |
| Depreciation      and amortization                                                                                                                                                                                                                                                                     |   |                    | 4.0     |   |             |   | 4.2     |                       |   |   | (21.1            | )      |   |   | 3.8 |   |   |   | 3.9 |   |   |   | (20.8 | ) |
| Sale      of proprietary credit card                                                                                                                                                                                                                                                                   |   |                    |    |   |             |   |    |                       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| receivables      programs                                                                      |   |                    | 2.9     |   |             |   | – |                       |   |   | –          |   |   |   | 0.9 |   |   |   | – |   |   |   | – |   |
| Impairment      of store      assets                                            |   |                    | – |   |             |   | 3.7     |                       |   |   | –          |   |   |   | – |   |   |   | 1.1 |   |   |   | – |   |
| Restructuring      and other charges                                                                                                                                                                                                                                                                   |   |                    | 3.2     |   |             |   | 1.2     |                       |   |   | 130.7            |   |   |   | 2.0 |   |   |   | 1.3 |   |   |   | 25.1 |   |
| Loss      from      operations                                                  |   |                    | (8.7    | )      |             |   | (12.4   | )                          |   |   | (41.7            | )      |   |   | (2.5 | ) |   |   | (3.8 | ) |   |   | (44.7 | ) |
| Other      income                                                               |   |                    | 0.0     |   |             |   | 0.3     |                       |   |   | (89.4            | )      |   |   | 0.0 |   |   |   | 0.2 |   |   |   | (78.7 | ) |
| Gain      on repurchase of debt                                                                                                                                                                                                                                                                        |   |                    | 0.3     |   |             |   | – |                       |   |   | –          |   |   |   | 0.8 |   |   |   | – |   |   |   | – |   |
| Interest      expense                                                           |   |                    | 1.0     |   |             |   | 0.9     |                       |   |   | (0.8             | )      |   |   | (0.9 | ) |   |   | 0.8 |   |   |   | (2.3 | ) |
| Income      tax provision/(benefit)                                                                                                                                                                                                                                                                    |   |                    | 1.1     |   |             |   | (2.1    | )                          |   |   | (141.6           | )      |   |   | 0.7 |   |   |   | (0.8 | ) |   |   | (167.4 | ) |
| Loss      from continuing operations                                                                                                                                                                                                                                                                   |   |                    | (10.5   | )      |             |   | (10.8   | )                          |   |   | (19.2            | )      |   |   | (3.3 | ) |   |   | (3.6 | ) |   |   | (24.7 | ) |
| Loss      from discontinued operations,                                                                                                                                                                                                                                                                |   |                    |    |   |             |   |    |                       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of      tax                                                                           |   |                    | – |   |             |   | (4.3    | )                          |   |   | –          |   |   |   | – |   |   |   | (4.1 | ) |   |   | – |   |
| Net      loss                                                                   |   |                    | (10.5   | )      |             |   | (15.1   | )                          |   |   | (42.3            | )      |   |   | (3.3 | ) |   |   | (7.7 | ) |   |   | (64.7 | ) |
| ____________________                                                                                                                                                                                                                                                                                   |   |
| (1)       Results may not add due to rounding.                                                                                                                                                                                                                                                    |   |

----

Table ofContents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Thirteen Weeks Ended |   |   | Thirty-nine Weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | October      31,     |   |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2009                 |   |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Retail      Stores segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Increase      (decrease) in comparable store sales(1)      :                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 |   |   |                    |   |   |   |   |   |   |   |
| Consolidated      retail stores                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | (13    | )%     |                    |   | (9 | )% |   |   | (14 | )% |   |   | (11 | )% |
| LANE      BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | (14    | )      |                    |   | (10 | ) |   |   | (14 | ) |   |   | (11 | ) |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | (14    | )      |                    |   | (9 | ) |   |   | (15 | ) |   |   | (10 | ) |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | (5     | )      |                    |   | (10 | ) |   |   | (7 | ) |   |   | (13 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Sales      from new stores as a percentage of total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| consolidated prior-period      sales(2):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| LANE      BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | 1      |   |                    |   | 4 |   |   |   | 2 |   |   |   | 4 |   |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | 0      |   |                    |   | 1 |   |   |   | 0 |   |   |   | 1 |   |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | 0      |   |                    |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Other      retail stores(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | 0      |   |                    |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Prior-period      sales from closed stores as a percentage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| of total consolidated      prior-period sales:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| LANE      BRYANT(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 | (2     | )      |                    |   | (3 | ) |   |   | (2 | ) |   |   | (3 | ) |
| FASHION      BUG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 | (2     | )      |                    |   | (3 | ) |   |   | (2 | ) |   |   | (2 | ) |
| CATHERINES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 | (0     | )      |                    |   | (0 | ) |   |   | (0 | ) |   |   | (0 | ) |
| Other      retail stores(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 | (0     | )      |                    |   | (0 | ) |   |   | (0 | ) |   |   | (0 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Decrease      in Retail Stores segment sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | (15    | )      |                    |   | (10 | ) |   |   | (16 | ) |   |   | (10 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Direct-to-Consumer      segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Increase/(decrease)      in Direct-to-Consumer segment sales(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | (56    | )      |                    |   | 130 |   |   |   | (50 | ) |   |   | 187 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Decrease      in consolidated total net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | (17    | )      |                    |   | (8 | ) |   |   | (17 | ) |   |   | (7 | ) |
| ____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (1)       “Comparable store sales” is not a measure that has been defined under      generally accepted accounting principles. The method of calculating      comparable store sales varies across the retail industry and, therefore,      our calculation of comparable store sales is not necessarily comparable to      similarly-titled measures reported by other companies. We define      comparable store sales as sales from stores operating in both the current      and prior-year periods. New stores are added to the comparable store      sales base 13 months after their open date. Sales from stores that      are relocated within the same mall or strip-center, remodeled, or have a      legal square footage change of less than 20% are included in the      calculation of comparable store sales. Sales from stores that are      relocated outside the existing mall or strip-center, or have a legal      square footage change of 20% or more, are excluded from the calculation of      comparable store sales until 13 months after the relocated store is      opened. Stores that are temporarily closed for a period of 4 weeks or      more are excluded from the calculation of comparable store sales for the      applicable periods in the year of closure and the subsequent      year. Non-store sales, such as catalog and internet sales, are      excluded from the calculation of comparable store sales. |   |
| (2)       Includes incremental Retail Stores segment e-commerce    sales.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| (3)       Includes LANE BRYANT OUTLET stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| (4)       Includes PETITE SOPHISTICATE stores, which were closed in August 2008, and      PETITE SOPHISTICATE OUTLET stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (5)       Primarily LANE BRYANT WOMAN catalog which began operations in the Fiscal      2007 Fourth Quarter. During the Fiscal 2008 Third Quarter we      announced our decision to discontinue the LANE BRYANT WOMAN catalog, which      we completed during the Fiscal 2009 Second Quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |

----

Table ofContents

|                                                                                                                                                                                                                  |   |   |    |   | Depreciation |   |    |           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------------|--------|---------|----------------|--------|
|                                                                                                                                                                                                                  |   | Net    |    |   | and          |   |    | Loss      From |   |
| (In      millions)                                                                                                                                                                                                    |   | Sales  |    |   | Amortization |   |    | Operations     |   |
|                                                                                                                                                                                                                  |   |   |    |   |         |   |    |           |   |
| Thirteen      weeks ended October 31, 2009                                                                                                                                                                            |   |   |    |   |         |   |    |           |   |
| LANE      BRYANT(1)                                                                                                                                                                                              |   | $      | 218.0   |   |         | $      | 8.0     |           |   | $ | 15.4 |   |
| FASHION      BUG                                                                                                                                                                                                      |   |   | 155.0   |   |         |   | 3.1     |           |   |   | (12.2 | ) |
| CATHERINES                                                                                                                                                                                                            |   |   | 71.3    |   |         |   | 1.7     |           |   |   | 0.6 |   |
| Other      retail stores(2)                                                                                                                                                                                      |   |   | 4.0     |   |         |   | 0.0     |           |   |   | (0.1 | ) |
| Total      Retail Stores segment                                                                                                                                                                                      |   |   | 448.3   |   |         |   | 12.8    |           |   |   | 3.7 |   |
| Total      Direct-to-Consumer segment                                                                                                                                                                                 |   |   | 9.4     |   |         |   | 0.2     |           |   |   | (4.0 | ) |
| Credit      operations                                                                                                                                                                                                |   |   | 2.5     | (3)    |         |   | 0.4     |           |   |   | 18.0 | (4) |
| Corporate      and other                                                                                                                                                                                              |   |   | – |   |         |   | 4.9     |           |   |   | (29.7 | ) |
| Sale      of proprietary credit card receivables programs                                                                                                                                                             |   |   | – |   |         |   | – |           |   |   | (13.4 | ) |
| Restructuring      and other charges                                                                                                                                                                                  |   |   | – |   |         |   | – |           |   |   | (14.7 | ) |
| Total      consolidated                                                                                                                                                                                               |   | $      | 460.2   |   |         | $      | 18.3    |           |   | $ | (40.1 | ) |
|                                                                                                                                                                                                                  |   |   |    |   |         |   |    |           |   |   |   |   |
| Thirteen      weeks ended November 1, 2008                                                                                                                                                                            |   |   |    |   |         |   |    |           |   |   |   |   |
| LANE      BRYANT(1)                                                                                                                                                                                              |   | $      | 257.2   |   |         | $      | 8.9     |           |   | $ | 17.2 |   |
| FASHION      BUG                                                                                                                                                                                                      |   |   | 191.1   |   |         |   | 4.1     |           |   |   | (27.6 | ) |
| CATHERINES                                                                                                                                                                                                            |   |   | 74.2    |   |         |   | 2.0     |           |   |   | (1.7 | ) |
| Other      retail stores(2)                                                                                                                                                                                      |   |   | 6.0     |   |         |   | 0.0     |           |   |   | 0.0 |   |
| Total      Retail Stores segment                                                                                                                                                                                      |   |   | 528.5   |   |         |   | 15.0    |           |   |   | (12.1 | ) |
| Total      Direct-to-Consumer segment                                                                                                                                                                                 |   |   | 21.3    |   |         |   | 0.2     |           |   |   | (6.1 | ) |
| Credit      operations                                                                                                                                                                                                |   |   | 2.9     | (3)    |         |   | 0.4     |           |   |   | 13.1 | (4) |
| Corporate      and other                                                                                                                                                                                              |   |   | 0.4     | (5)    |         |   | 7.5     |           |   |   | (37.1 | ) |
| Impairment      of store assets                                                                                                                                                                                       |   |   | – |   |         |   | – |           |   |   | (20.2 | ) |
| Restructuring      and other charges                                                                                                                                                                                  |   |   | – |   |         |   | – |           |   |   | (6.4 | ) |
| Total      consolidated                                                                                                                                                                                               |   | $      | 553.1   |   |         | $      | 23.1    |           |   | $ | (68.8 | ) |
| ____________________                                                                                                                                                                                                  |   |
| (1)       Includes LANE BRYANT OUTLET stores.                                                                                                                                                                    |   |
| (2)       Includes PETITE SOPHISTICATE stores, which began operations in October      2007 and were closed in August 2008, and PETITE SOPHISTICATE OUTLET      stores, which began operations in September 2006. |   |
| (3)       Primarily revenue related to loyalty card fees.                                                                                                                                                        |   |
| (4)       Net of expenses allocated to Retail Stores brands.                                                                                                                                                     |   |
| (5)       Revenues related to our figure magazine, which      was discontinued in the Fiscal 2009 First Quarter.                                                                                                 |   |
|                                                                                                                                                                                                                  |   |
| Continued      on next page)                                                                                                                                                                                          |   |

----

Table ofContents

|                                                                                                                                                                                                                  |   |   |    |   | Depreciation |   |    |           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------------|--------|---------|----------------|--------|
|                                                                                                                                                                                                                  |   | Net    |    |   | and          |   |    | Loss      From |   |
| (In      millions)                                                                                                                                                                                                    |   | Sales  |    |   | Amortization |   |    | Operations     |   |
|                                                                                                                                                                                                                  |   |   |    |   |         |   |    |           |   |
| Thirty-nine      weeks ended October 31, 2009                                                                                                                                                                         |   |   |    |   |         |   |    |           |   |
| LANE      BRYANT(1)                                                                                                                                                                                              |   | $      | 718.8   |   |         | $      | 24.1    |           |   | $ | 58.7 |   |
| FASHION      BUG                                                                                                                                                                                                      |   |   | 523.1   |   |         |   | 9.0     |           |   |   | (5.8 | ) |
| CATHERINES                                                                                                                                                                                                            |   |   | 227.2   |   |         |   | 5.1     |           |   |   | 14.4 |   |
| Other      retail stores(2)                                                                                                                                                                                      |   |   | 13.0    |   |         |   | 0.1     |           |   |   | (0.1 | ) |
| Total      Retail Stores segment                                                                                                                                                                                      |   |   | 1,482.1 |   |         |   | 38.3    |           |   |   | 67.2 |   |
| Total      Direct-to-Consumer segment                                                                                                                                                                                 |   |   | 35.2    |   |         |   | 0.7     |           |   |   | (11.6 | ) |
| Credit      operations                                                                                                                                                                                                |   |   | 7.9     | (3)    |         |   | 1.3     |           |   |   | 38.0 | (4) |
| Corporate      and other                                                                                                                                                                                              |   |   | 0.4     | (5)    |         |   | 17.2    |           |   |   | (87.8 | ) |
| Sale      of proprietary credit card receivables programs                                                                                                                                                             |   |   | – |   |         |   | – |           |   |   | (13.4 | ) |
| Restructuring      and other charges                                                                                                                                                                                  |   |   | – |   |         |   | – |           |   |   | (31.2 | ) |
| Total      consolidated                                                                                                                                                                                               |   | $      | 1,525.6 |   |         | $      | 57.5    |           |   | $ | (38.8 | ) |
|                                                                                                                                                                                                                  |   |   |    |   |         |   |    |           |   |   |   |   |
| Thirty-nine      weeks ended November 1, 2008                                                                                                                                                                         |   |   |    |   |         |   |    |           |   |   |   |   |
| LANE      BRYANT(1)                                                                                                                                                                                              |   | $      | 839.6   |   |         | $      | 25.5    |           |   | $ | 59.1 |   |
| FASHION      BUG                                                                                                                                                                                                      |   |   | 659.8   |   |         |   | 13.4    |           |   |   | (0.9 | ) |
| CATHERINES                                                                                                                                                                                                            |   |   | 244.3   |   |         |   | 4.4     |           |   |   | 11.2 |   |
| Other      retail stores(2)                                                                                                                                                                                      |   |   | 18.9    |   |         |   | 0.1     |           |   |   | 0.1 |   |
| Total      Retail Stores segment                                                                                                                                                                                      |   |   | 1,762.6 |   |         |   | 43.4    |           |   |   | 69.5 |   |
| Total      Direct-to-Consumer segment                                                                                                                                                                                 |   |   | 70.8    |   |         |   | 0.7     |           |   |   | (16.3 | ) |
| Credit      operations                                                                                                                                                                                                |   |   | 8.5     | (3)    |         |   | 1.3     |           |   |   | 36.6 | (4) |
| Corporate      and other                                                                                                                                                                                              |   |   | 1.1     | (5)    |         |   | 27.2    |           |   |   | (114.9 | ) |
| Impairment      of store assets                                                                                                                                                                                       |   |   | – |   |         |   | – |           |   |   | (20.2 | ) |
| Restructuring      and other charges                                                                                                                                                                                  |   |   | – |   |         |   | – |           |   |   | (24.9 | ) |
| Total      consolidated                                                                                                                                                                                               |   | $      | 1,843.0 |   |         | $      | 72.6    |           |   | $ | (70.2 | ) |
| ____________________                                                                                                                                                                                                  |   |
| (1)       Includes LANE BRYANT OUTLET stores.                                                                                                                                                                    |   |
| (2)       Includes PETITE SOPHISTICATE stores, which began operations in October      2007 and were closed in August 2008, and PETITE SOPHISTICATE OUTLET      stores, which began operations in September 2006. |   |
| (3)       Primarily revenue related to loyalty card fees.                                                                                                                                                        |   |
| (4)       Net of expenses allocated to Retail Stores brands.                                                                                                                                                     |   |
| (5)       Revenues related to our figure magazine, which      was discontinued in the Fiscal 2009 First Quarter.                                                                                                 |   |

----

Table ofContents

|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   | PETITE       |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|---------|------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                  |   | LANE   |    |   | FASHION |   |    |       |   |   | SOPHISTICATE |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   | BRYANT |    |   | BUG     |   |    | CATHERINES |   |   | OUTLET       |   |   | Total  |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |
| Fiscal      2009 Year-to-Date:                                                                                                                                                                                                                                                                                                                                                        |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |
| Stores      at January 31, 2009                                                                                                                                                                                                                                                                                                                                                       |   |   | 892     |   |    |   | 897     |       |   |   | 463          |   |   |   | 49     |   |   |   | 2,301 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |   |   |   |   |   |
| Stores      opened                                                                                                                                                                                                                                                                                                                                                                    |   |   | 8       |   |    |   | 1       |       |   |   | 0            |   |   |   | 0      |   |   |   | 9 |   |
| Stores      converted(1)                                                                                                                                                                                                                                                                                                                                                              |   |   | – |   |    |   | – |       |   |   | 5            |   |   |   | (5     | ) |   |   | – |   |
| Stores      closed(2)                                                                                                                                                                                                                                                                                                                                                                 |   |   | (21     | )      |    |   | (50     | )          |   |   | (5           | )      |   |   | (7     | ) |   |   | (83 | ) |
| Net      change in stores                                                                                                                                                                                                                                                                                                                                                             |   |   | (13     | )      |    |   | (49     | )          |   |   | 0            |   |   |   | (12    | ) |   |   | (74 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |   |   |   |   |   |
| Stores      at October 31, 2009                                                                                                                                                                                                                                                                                                                                                       |   |   | 879     |   |    |   | 848     |       |   |   | 463          |   |   |   | 37     |   |   |   | 2,227 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |   |   |   |   |   |
| Stores      relocated during period                                                                                                                                                                                                                                                                                                                                                   |   |   | 5       |   |    |   | 1       |       |   |   | 0            |   |   |   | 0      |   |   |   | 6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |   |   |   |   |   |
| Fiscal      2009:                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |    |   |    |       |   |   |         |   |   |   |   |   |   |   |   |   |
| Planned      store openings                                                                                                                                                                                                                                                                                                                                                           |   |   | 8       |   |    |   | 1       |       |   |   | 0            |   |   |   | 0      |   |   |   | 9 |   |
| Planned      store conversions(1)                                                                                                                                                                                                                                                                                                                                                     |   |   | – |   |    |   | – |       |   |   | 5            |   |   |   | (33    | ) |   |   | – |   |
| Planned      store closings                                                                                                                                                                                                                                                                                                                                                           |   |   | 42      |   |    |   | 95      |       |   |   | 9            |   |   |   | 16     |   |   |   | 162 |   |
| Planned      store relocations                                                                                                                                                                                                                                                                                                                                                        |   |   | 5       |   |    |   | 2       |       |   |   | 0            |   |   |   | 0      |   |   |   | 7 |   |
| ____________________                                                                                                                                                                                                                                                                                                                                                                  |   |
|        (1)  During      Fiscal 2009 we decided to close our PETITE SOPHISTICATE OUTLET stores and      convert a majority of the locations to CATHERINES outlet stores. We      completed the conversion of 5 stores during the first three quarters of      Fiscal 2009 and we expect to complete the remaining 28 conversions by the      end of February 2010. |   |
|    (2)  Includes      14 FASHION BUG and 6 LANE BRYANT stores closed as part of the store      closing initiatives announced in February 2008 and November      2008.                                                                                                                                                                                                  |   |

----

Table ofContents

----

Table ofContents

----

Table ofContents

----

Table ofContents

| ● | $11.1      million for lease termination and related costs for the retained lease      facilities from the sale of the non-core misses apparel catalog business      that ceased operations during the Fiscal 2009 Third    Quarter.                                                                                                                  |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                  |
| ● | $1.7      million for accelerated depreciation related to fixed assets retained from      the sale of the non-core misses apparel catalog business and our decision      to outsource the development and hosting of our new e-commerce      platform.  These fixed assets were fully depreciated as of the      Fiscal 2009 Third Quarter. |
|    |                                                                                                                                                                                                                                                                                                                                                  |
| ● | $1.9      million for costs related to our multi-year business transformation      initiatives and other costs.                                                                                                                                                                                                                                       |

----

Table ofContents

----

Table ofContents

----

Table ofContents

----

Table ofContents

| ● | $12.1      million for lease termination costs related to the retained leased      facilities from the sale of the non-core misses apparel catalog      business.  These retained facilities ceased operations by the      end of the Fiscal 2009 Third Quarter.                                                                                    |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                          |
| ● | $8.6      million for costs related to our multi-year business transformation      initiatives.                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                          |
| ● | $7.9      million for accelerated depreciation related to fixed assets retained from      the sale of the non-core misses apparel catalog business and our decision      to outsource the development and hosting of our new e-commerce      platform.  These fixed assets were fully depreciated by the end      of the Fiscal 2009 Third Quarter. |
|    |                                                                                                                                                                                                                                                                                                                                                          |
| ● | $1.3      million for retention costs and accelerated depreciation for the planned      closing of the LANE BRYANT WOMAN catalog operations, which we completed      during the Fiscal 2009 Second Quarter.                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                          |
| ● | $1.3      million for lease termination costs and accelerated depreciation related      to the closing of under-performing stores and other  costs.                                                                                                                                                                                                           |

----

Table ofContents

----

Table ofContents

LIQUIDITY

|                                |   | October      31, |   |   | January      31, |   |
|-------------------------------------|--------|------------------|--------|--------|------------------|--------|
| (Dollars      in millions)          |   | 2009             |   |   | 2009             |   |
|                                |   |             |   |   |             |   |
| Cash      and cash equivalents      |   | $                | 223.9  |   |             | $      | 93.8 |   |
| Available-for-sale      securities  |   | $                | 0.4    |   |             | $      | 6.4 |   |
| Working      capital                |   | $                | 343.6  |   |             | $      | 382.0 |   |
| Current      ratio                  |   |             | 2.0    |   |             |   | 2.4 |   |
| Long-term      debt to equity ratio |   |             | 37.4   | %      |             |   | 43.3 | % |

----

Table ofContents

----

Table ofContents

FINANCING

----

Table ofContents

|                                                                                                                        |   | Thirteen Weeks Ended |   |   | Thirty-nine Weeks Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------------|--------|
|                                                                                                                        |   | October      31,     |   |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
|        (In millions)                                                                                                   |   | 2009(1)              |   |   | 2008                    |   |   | 2009(1) |   |   | 2008 |   |
|                                                                                                                        |   |                 |   |   |                    |   |   |   |   |   |   |   |
|        Net securitization excess spread revenues                                                                       |   | $                    | 23.7   |   |                    | $      | 25.6 |   |   | $ | 63.7 |   |   | $ | 75.2 |   |
|        Net changes to the I/O strip and servicing liability                                                            |   |                 | 2.7    |   |                    |   | (0.6 | ) |   |   | 2.5 |   |   |   | (0.6 | ) |
|        Other credit card revenues, net(2)                                                                         |   |                 | 2.7    |   |                    |   | 3.9 |   |   |   | 8.8 |   |   |   | 9.8 |   |
|        Total proprietary credit card revenues                                                                          |   |                 | 29.1   |   |                    |   | 28.9 |   |   |   | 75.0 |   |   |   | 84.4 |   |
|        Less total credit card program expenses                                                                         |   |                 | 13.4   |   |                    |   | 17.4 |   |   |   | 42.3 |   |   |   | 52.4 |   |
|        Total credit contribution                                                                                       |   | $                    | 15.7   |   |                    | $      | 11.5 |   |   | $ | 32.7 |   |   | $ | 32.0 |   |
|        ____________________                                                                                            |   |
|        (1)  Through October 30, 2009 (the date of sale of the proprietary      credit card receivables programs). |   |
|        (2)  Excludes inter-company merchant fees between our credit entities      and our retail entities.        |   |

----

Table ofContents

|                                                                                                                             |   | Thirteen Weeks Ended |    |   | Thirty-nine Weeks Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-------------------------|--------|
|                                                                                                                             |   | October      31,     |    |   | November      1,        |   |   | October      31, |   |   | November      1, |   |
|        (In millions)                                                                                                        |   | 2009(1)              |    |   | 2008                    |   |   | 2009(1) |   |   | 2008 |   |
|                                                                                                                             |   |                 |    |   |                    |   |   |   |   |   |   |   |
|        Average managed receivables outstanding                                                                              |   | $                    | 484.9   |   |                    | $      | 583.7 |   |   | $ | 496.9 |   |   | $ | 587.0 |   |
|        Ending managed receivables outstanding(2)                                                                            |   |                 | – |   |                    | $      | 588.5 |   |   |   | – |   |   | $ | 588.5 |   |
|        ____________________                                                                                                 |   |
|        (1)  Through October 30, 2009 (the date of sale of the proprietary      credit card receivables programs).      |   |
|        (2)  There are no managed receivables as of October 31, 2009 due to      the sale of the credit card portfolio. |   |

----

Table ofContents

MARKET

----

Table ofContents

IMPACT

Item 3.

Item 4.

----

Table ofContents

PART II.

Item 1.

Item 1A

----

Table ofContents

----

Table ofContents

Item 2.

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           |   |   |            |   |   | 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)      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           |   |   |            |   |   |                  |   |   |             |   |
| August      2, 2009 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           |   |   |            |   |   |                  |   |   |             |   |
| August      29, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | 1,363  | (1)    |            | $      | 5.14   |                  |   |   | –          |   |   |   |   |
| August      30, 2009 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |   |   |            |   |   |                  |   |   |             |   |   |   |   |
| October      3, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | 1,076  | (1)    |            |   | 4.93   |                  |   |   | –          |   |   |   |   |
| October      4, 2009 through                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |   |   |            |   |   |                  |   |   |             |   |   |   |   |
| October      31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           | 0      |   |            |   | 0.00   |                  |   |   | –          |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           | 2,439  |   |            | $      | 5.05   |                  |   |   | –          |   |   |   |   | (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 October 31, 2009, $197,364,592 was available for future      repurchases under this program. This repurchase program has no      expiration date. |   |

----

Table ofContents

Item 6.

| 2.1    | Stock      Purchase Agreement dated May 19, 2005 by and among Chestnut Acquisition      Sub, Inc., Crosstown Traders, Inc., the Securityholders of Crosstown      Traders, Inc. whose names are set forth on the signature pages thereto,      and J.P. Morgan Partners (BHCA), L.P., as the Sellers’ Representative,      incorporated by reference to Form 8-K of the Registrant dated June 2,      2005, filed on June 8, 2005 (File No. 000-07258, Exhibit    2.1).                                                                                                                                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.2    | Stock      Purchase Agreement dated as of August 25, 2008 by and between Crosstown      Traders, Inc., Norm Thompson Outfitters, Inc., Charming Shoppes, Inc. and      the other persons listed on the signature page thereto, incorporated by      reference to Form 8-K of the Registrant dated August 25, 2008, filed on      August 28, 2008 (File No. 000-07258, Exhibit 10.1).                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.3    | Amendment      No. 1 to Stock Purchase Agreement dated as of September 18, 2008 by and      among Crosstown Traders, Inc. and Norm Thompson Outfitters, Inc.,      incorporated by reference to Form 8-K of the Registrant dated September      18, 2008, filed on September 19, 2008 (File No. 000-07258, Exhibit      10.2).                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.4    | Transition      Services Agreement dated as of September 18, 2008 by and between Charming      Shoppes of Delaware, Inc. and Arizona Mail Order Company, incorporated by      reference to Form 8-K of the Registrant dated September 18, 2008, filed on      September 19, 2008 (File No. 000-07258, Exhibit 10.3).                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.1    | Third      Amended and Restated Loan and Security Agreement, dated July 31, 2009, by      and among Charming Shoppes, Inc., Charming Shoppes of Delaware, Inc., CSI      Industries, Inc., FB Apparel, Inc., Catherines Stores Corporation, and      Lane Bryant, Inc. as borrowers; a syndicate of banks and other financial      institutions as lenders, including Wells Fargo Retail Finance, LLC as      agent for the lenders; and certain of the Company’s subsidiaries as      guarantors, incorporated by reference to Form 8-K of the Registrant dated      July 31, 2009, filed on August 6, 2009 (File No. 000-07258, Exhibit      4.1). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.1   | Offer      Letter dated as of April 2, 2009 by and between Charming Shoppes, Inc. and      James P. Fogarty, incorporated by reference to Form 8-K of the Registrant      dated April 2, 2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.1).                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.2   | Severance      Agreement dated as of April 2, 2009 by and between Charming Shoppes, Inc.      and James P. Fogarty, incorporated by reference to Form 8-K of the      Registrant dated April 2, 2009, filed on April 7, 2009 (File No.      000-07258, Exhibit 10.2).                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.3   | Stock      Appreciation Rights Agreement dated as of April 2, 2009 by and between      Charming Shoppes, Inc. and James P. Fogarty (Inducement Grant),      incorporated by reference to Form 8-K of the Registrant dated April 2,      2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.3).                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.4   | Stock      Appreciation Rights Agreement dated as of April 2, 2009 by and between      Charming Shoppes, Inc. and James P. Fogarty (Time-Based Grant),      incorporated by reference to Form 8-K of the Registrant dated April 2,      2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.4).                                                                                                                                                                                                                                                                                                                                              |

----

Table ofContents

| 10.5   | Form      of Amendment to the Severance Agreements between certain executive vice      presidents and the Company, including the following named executive      officers: Eric M. Specter, Joseph M. Baron, James G. Bloise and Colin D.      Stern, incorporated by reference to Form 8-K of the Registrant dated May      1, 2009, filed on May 5, 2009 (File No. 000-07258, Exhibit      10.1).                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6   | 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).                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7   | Private      Label Credit Card Plan Agreement for Lane Bryant and Petite Sophisticate      dated as of August 12, 2009 between WFNNB and Lane Bryant, Inc., Petite      Sophisticate, Inc., Outlet Division Management Co., Inc., and Sierra      Nevada Factoring, Inc., incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.2). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.8   | Private      Label Credit Card Plan Agreement for Fashion Bug dated as of August 12,      2009 between WFNNB and Fashion Bug Retail Companies, Inc. and Sierra      Nevada Factoring, Inc., incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.3).                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.9   | Private      Label Credit Card Plan Agreement for Catherines dated as of August 12,      2009 among WFNNB, Catherines Stores Corporation, and Sierra Nevada      Factoring, Inc., incorporated by reference to Form 8-K of the Registrant      dated August 12, 2009, filed on August 14, 2009 (File No. 000-07258,      Exhibit 10.4).                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.10  | Agreement      Regarding CHRS Subsidiary Private Label Plans dated as of August 12, 2009      between CSI and WFNNB, incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.5).                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.11  | Fourth      Amendment to the Purchase and Sale Agreement, dated October 30, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.1).                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.12  | Sixth      Amendment to Pooling and Servicing Agreement, dated October 30, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.2).                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.13  | Series      2004-VFC Payoff and Release Agreement, dated October 25, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.3).                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.14  | Series      1999-2 Payoff and Release Agreement, dated October 25, 2009, incorporated      by reference to Form 8-K of the Registrant dated October 30, 2009, filed      on November 3, 2009 (File No. 000-07258, Exhibit 10.4).                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.15  | Second      Amendment to Purchase and Sale Agreement, dated November 9, 2000,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.5).                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.16  | Third      Amendment to Purchase and Sale Agreement, dated May 8, 2001, incorporated      by reference to Form 8-K of the Registrant dated October 30, 2009, filed      on November 3, 2009 (File No. 000-07258, Exhibit 10.6).                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

Table ofContents

| 10.17  | Second      Amendment to the Second Amended and Restated Pooling and Servicing      Agreement, dated May 8, 2001, incorporated by reference to Form 8-K of the      Registrant dated October 30, 2009, filed on November 3, 2009 (File No.      000-07258, Exhibit 10.7).    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                         |
| 10.18  | Charming      Shoppes, Inc. 2004 Stock Award and Incentive Plan, incorporated by      reference to Appendix A of the Registrant’s Proxy Statement pursuant to      Section 14 of the Securities Exchange Act of 1934, filed on May 15, 2009      (File No. 000-07258). |
|   |                                                                                                                                                                                                                                                                         |
| 10.19  | 2003      Non-Employee Directors Compensation Plan, Amended and Restated Effective      May 1, 2009, incorporated by reference to Form 10-Q of the Registrant for      the quarter ended August 1, 2009 (File No. 000-07258, Exhibit      10.12).                            |
|   |                                                                                                                                                                                                                                                                         |
| 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.                                                                                                                                            |

----

Table ofContents

SIGNATURES

|                        | CHARMING SHOPPES, INC.        |
|-----------------------------|-------------------------------|
|                        | (Registrant)                  |
|                        |                          |
|                        |                          |
|                        |                          |
| Date:      December 2, 2009 | /S/ JAMES P. FOGARTY          |
|                        | James      P. Fogarty         |
|                        | President                     |
|                        | Chief      Executive Officer  |
|                        |                          |
|                        |                          |
|                        |                          |
| Date:      December 2, 2009 | /S/ ERIC M. SPECTER           |
|                        | Eric      M. Specter          |
|                        | Executive      Vice President |
|                        | Chief      Financial Officer  |

----

Table ofContents

EXHIBIT INDEX

| Exhibit No. | Item                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.1         | Stock      Purchase Agreement dated May 19, 2005 by and among Chestnut Acquisition      Sub, Inc., Crosstown Traders, Inc., the Securityholders of Crosstown      Traders, Inc. whose names are set forth on the signature pages thereto,      and J.P. Morgan Partners (BHCA), L.P., as the Sellers’ Representative,      incorporated by reference to Form 8-K of the Registrant dated June 2,      2005, filed on June 8, 2005 (File No. 000-07258, Exhibit    2.1).                                                                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.2         | Stock      Purchase Agreement dated as of August 25, 2008 by and between Crosstown      Traders, Inc., Norm Thompson Outfitters, Inc., Charming Shoppes, Inc. and      the other persons listed on the signature page thereto, incorporated by      reference to Form 8-K of the Registrant dated August 25, 2008, filed on      August 28, 2008 (File No. 000-07258, Exhibit 10.1).                                                                                                                                                                                                                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.3         | Amendment      No. 1 to Stock Purchase Agreement dated as of September 18, 2008 by and      among Crosstown Traders, Inc. and Norm Thompson Outfitters, Inc.,      incorporated by reference to Form 8-K of the Registrant dated September      18, 2008, filed on September 19, 2008 (File No. 000-07258, Exhibit      10.2).                                                                                                                                                                                                                                                                                                                             |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.4         | Transition      Services Agreement dated as of September 18, 2008 by and between Charming      Shoppes of Delaware, Inc. and Arizona Mail Order Company, incorporated by      reference to Form 8-K of the Registrant dated September 18, 2008, filed on      September 19, 2008 (File No. 000-07258, Exhibit 10.3).                                                                                                                                                                                                                                                                                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.1         | Third      Amended and Restated Loan and Security Agreement, dated July 31, 2009, by      and among Charming Shoppes, Inc., Charming Shoppes of Delaware, Inc., CSI      Industries, Inc., FB Apparel, Inc., Catherines Stores Corporation, and      Lane Bryant, Inc. as borrowers; a syndicate of banks and other financial      institutions as lenders, including Wells Fargo Retail Finance, LLC as      agent for the lenders; and certain of the Company’s subsidiaries as      guarantors, incorporated by reference to Form 8-K of the Registrant dated      July 31, 2009, filed on August 6, 2009 (File No. 000-07258, Exhibit      4.1). |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.1        | Offer      Letter dated as of April 2, 2009 by and between Charming Shoppes, Inc. and      James P. Fogarty, incorporated by reference to Form 8-K of the Registrant      dated April 2, 2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.1).                                                                                                                                                                                                                                                                                                                                                                                             |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.2        | Severance      Agreement dated as of April 2, 2009 by and between Charming Shoppes, Inc.      and James P. Fogarty, incorporated by reference to Form 8-K of the      Registrant dated April 2, 2009, filed on April 7, 2009 (File No.      000-07258, Exhibit 10.2).                                                                                                                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.3        | Stock      Appreciation Rights Agreement dated as of April 2, 2009 by and between      Charming Shoppes, Inc. and James P. Fogarty (Inducement Grant),      incorporated by reference to Form 8-K of the Registrant dated April 2,      2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.3).                                                                                                                                                                                                                                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

Table ofContents

| 10.4   | Stock      Appreciation Rights Agreement dated as of April 2, 2009 by and between      Charming Shoppes, Inc. and James P. Fogarty (Time-Based Grant),      incorporated by reference to Form 8-K of the Registrant dated April 2,      2009, filed on April 7, 2009 (File No. 000-07258, Exhibit      10.4).                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.5   | Form      of Amendment to the Severance Agreements between certain executive vice      presidents and the Company, including the following named executive      officers: Eric M. Specter, Joseph M. Baron, James G. Bloise and Colin D.      Stern, incorporated by reference to Form 8-K of the Registrant dated May      1, 2009, filed on May 5, 2009 (File No. 000-07258, Exhibit      10.1).                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6   | 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).                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7   | Private      Label Credit Card Plan Agreement for Lane Bryant and Petite Sophisticate      dated as of August 12, 2009 between WFNNB and Lane Bryant, Inc., Petite      Sophisticate, Inc., Outlet Division Management Co., Inc., and Sierra      Nevada Factoring, Inc., incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.2). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.8   | Private      Label Credit Card Plan Agreement for Fashion Bug dated as of August 12,      2009 between WFNNB and Fashion Bug Retail Companies, Inc. and Sierra      Nevada Factoring, Inc., incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.3).                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.9   | Private      Label Credit Card Plan Agreement for Catherines dated as of August 12,      2009 among WFNNB, Catherines Stores Corporation, and Sierra Nevada      Factoring, Inc., incorporated by reference to Form 8-K of the Registrant      dated August 12, 2009, filed on August 14, 2009 (File No. 000-07258,      Exhibit 10.4).                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.10  | Agreement      Regarding CHRS Subsidiary Private Label Plans dated as of August 12, 2009      between CSI and WFNNB, incorporated by reference to Form 8-K of the      Registrant dated August 12, 2009, filed on August 14, 2009 (File No.      000-07258, Exhibit 10.5).                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.11  | Fourth      Amendment to the Purchase and Sale Agreement, dated October 30, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.1).                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.12  | Sixth      Amendment to Pooling and Servicing Agreement, dated October 30, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.2).                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.13  | Series      2004-VFC Payoff and Release Agreement, dated October 25, 2009,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.3).                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.14  | Series      1999-2 Payoff and Release Agreement, dated October 25, 2009, incorporated      by reference to Form 8-K of the Registrant dated October 30, 2009, filed      on November 3, 2009 (File No. 000-07258, Exhibit 10.4).                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.15  | Second      Amendment to Purchase and Sale Agreement, dated November 9, 2000,      incorporated by reference to Form 8-K of the Registrant dated October 30,      2009, filed on November 3, 2009 (File No. 000-07258, Exhibit      10.5).                                                                                                                                                                                      |

----

Table ofContents

|   |                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.16  | Third      Amendment to Purchase and Sale Agreement, dated May 8, 2001, incorporated      by reference to Form 8-K of the Registrant dated October 30, 2009, filed      on November 3, 2009 (File No. 000-07258, Exhibit 10.6).                                              |
|   |                                                                                                                                                                                                                                                                         |
| 10.17  | Second      Amendment to the Second Amended and Restated Pooling and Servicing      Agreement, dated May 8, 2001, incorporated by reference to Form 8-K of the      Registrant dated October 30, 2009, filed on November 3, 2009 (File No.      000-07258, Exhibit 10.7).    |
|   |                                                                                                                                                                                                                                                                         |
| 10.18  | Charming      Shoppes, Inc. 2004 Stock Award and Incentive Plan, incorporated by      reference to Appendix A of the Registrant’s Proxy Statement pursuant to      Section 14 of the Securities Exchange Act of 1934, filed on May 15, 2009      (File No. 000-07258). |
|   |                                                                                                                                                                                                                                                                         |
| 10.19  | 2003      Non-Employee Directors Compensation Plan, Amended and Restated Effective      May 1, 2009, incorporated by reference to Form 10-Q of the Registrant for      the quarter ended August 1, 2009 (File No. 000-07258, Exhibit      10.12).                            |
|   |                                                                                                                                                                                                                                                                         |
| 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.                                                                                                                                            |

----

Table ofContents