----

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| Delaware(State or other jurisdiction of incorporation or organization) 1706 Washington Ave., St. Louis, Missouri(Address of principal executive offices) | 43-1256674(I.R.S. Employer Identification No.) 63103(Zip Code) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|

| Registrant’s telephone number, including area code: 314/231-1575 |
|------------------------------------------------------------------------|

| Securities registered pursuant to Section 12(b) of the Act:  |
|-------------------------------------------------------------------|
| Title of each classCommon Stock, par value $0.40 per share        | Name of each exchange on which registeredNew York Stock Exchange |

| Securities registered pursuant to Section 12(g) of the Act: None  |
|------------------------------------------------------------------------|

----

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| PART I.       |   | FINANCIAL INFORMATION |   | Page                                                                    |
|---------------|--------|-----------------------|--------|-------------------------------------------------------------------------|
|          |   |                  |   |                                                                    |
|          |   | Item 1.               |   | Financial Statements:                                                   |   |   |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Balance Sheets                                     |   |   |
|          |   |                  |   | May 1, 2010 (Unaudited) and February 6, 2010                            |   | 1 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statements of Operations (Unaudited)               |   |   |
|          |   |                  |   | 12 Weeks Ended May 1, 2010 and May 2, 2009                              |   | 3 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statement of Changes in Stockholders'              |   |   |
|          |   |                  |   | Equity (Unaudited) 12 Weeks Ended May 1, 2010                           |   | 4 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statements of Cash Flow (Unaudited)                |   |   |
|          |   |                  |   | 12 Weeks Ended May 1, 2010 and May 2, 2009                              |   | 5 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Notes to Interim Consolidated Financial Statements (Unaudited)          |   | 7 |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 2.               |   | Management's Discussion and Analysis of Financial Condition and Results |   |   |
|          |   |                  |   | of Operations                                                           |   | 15 |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 3.               |   | Quantitative and Qualitative Disclosures about Market Risk              |   | 20 |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 4.               |   | Controls and Procedures                                                 |   | 21 |
|          |   |                  |   |                                                                    |   |   |
| PART II.      |   | OTHER INFORMATION     |   |                                                                    |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 6.               |   | Exhibits                                                                |   | 21 |
|          |   |                  |
| SIGNATURES    |   |                  |   | 22                                                                      |
|          |   |                  |
| EXHIBIT INDEX |   |                  |   | 23                                                                      |

| PART I. |   | FINANCIAL INFORMATION |
|---------|--------|-----------------------|

| Item 1. |   | Financial Statements |
|---------|--------|----------------------|

Interim

| in thousands                                                                       |   | May 1, 2010 |    |   |             |   |
|------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------------|--------|
|                                                                               |   | (Unaudited) |    |   | February 6, 2010 |   |
| ASSETS                                                                             |   |        |    |   |             |   |
| Current assets:                                                                    |   |        |    |   |             |   |
|      Cash and cash equivalents                                 |   | $           | 13,674  |   |             | $      | 18,913 |   |
|      Accounts receivable:                                      |   |        |    |   |             |   |   |   |
|           Trade                       |   |        | 6,859   |   |             |   | 5,960 |   |
|           Other                       |   |        | 247     |   |             |   | 880 |   |
|      Inventories                                               |   |        | 7,984   |   |             |   | 7,465 |   |
|      Prepaid expenses and other current assets                 |   |        | 5,490   |   |             |   | 5,396 |   |
|      Refundable income taxes                                   |   |        | 596     |   |             |   | 1,350 |   |
|      Deferred tax assets                                       |   |        | 5,450   |   |             |   | 7,253 |   |
|      Assets held for sale                                      |   |        | 7,172   |   |             |   | 6,338 |   |
|                                                                               |   |        |    |   |             |   |   |   |
|      Total current assets                                      |   |        | 47,472  |   |             |   | 53,555 |   |
|                                                                               |   |        |    |   |             |   |   |   |
| Property and equipment:                                                            |   |        |    |   |             |   |   |   |
|      Land                                                      |   |        | 2,185   |   |             |   | 2,185 |   |
|      Buildings and building improvements                       |   |        | 25,289  |   |             |   | 25,289 |   |
|      Leasehold improvements                                    |   |        | 4,720   |   |             |   | 4,491 |   |
|      Photographic, sales and manufacturing equipment           |   |        | 169,850 |   |             |   | 168,371 |   |
|           Total                       |   |        | 202,044 |   |             |   | 200,336 |   |
|      Less accumulated depreciation and amortization            |   |        | 167,885 |   |             |   | 166,167 |   |
|           Property and equipment, net |   |        | 34,159  |   |             |   | 34,169 |   |
| Prepaid debt fees                                                                  |   |        | 1,919   |   |             |   | 2,237 |   |
| Goodwill                                                                           |   |        | 21,831  |   |             |   | 21,720 |   |
| Intangible assets, net                                                             |   |        | 38,752  |   |             |   | 38,660 |   |
| Deferred tax assets                                                                |   |        | 7,344   |   |             |   | 7,701 |   |
| Other assets                                                                       |   |        | 8,537   |   |             |   | 8,549 |   |
|                                                                               |   |        |    |   |             |   |   |   |
| TOTAL ASSETS                                                                       |   | $           | 160,014 |   |             | $      | 166,591 |   |
|                                                                               |   |        |    |   |             |   |   |   |

| in thousands, except share and per share data                                                        |   | May 1, 2010 |    |   |             |   |
|------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------------|--------|
|                                                                                                 |   | (Unaudited) |    |   | February 6, 2010 |   |
| LIABILITIES                                                                                          |   |        |    |   |             |   |
| Current liabilities:                                                                                 |   |        |    |   |             |   |
|      Current maturities of long-term debt                                        |   | $           | 12,549  |   |             | $      | 19,686 |   |
|      Accounts payable                                                            |   |        | 5,462   |   |             |   | 4,390 |   |
|      Accrued employment costs                                                    |   |        | 8,884   |   |             |   | 9,878 |   |
|      Customer deposit liability                                                  |   |        | 12,410  |   |             |   | 11,528 |   |
|      Sales taxes payable                                                         |   |        | 1,742   |   |             |   | 3,929 |   |
|      Accrued advertising expenses                                                |   |        | 1,511   |   |             |   | 1,062 |   |
|      Accrued expenses and other liabilities                                      |   |        | 10,663  |   |             |   | 12,170 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
|      Total current liabilities                                                   |   |        | 53,221  |   |             |   | 62,643 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
| Long-term debt, less current maturities                                                              |   |        | 54,306  |   |             |   | 57,855 |   |
| Accrued pension plan obligations                                                                     |   |        | 17,656  |   |             |   | 17,724 |   |
| Other liabilities                                                                                    |   |        | 17,612  |   |             |   | 18,181 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
|      Total liabilities                                                           |   |        | 142,795 |   |             |   | 156,403 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
| CONTINGENCIES (see Note 12)                                                                          |   |        |    |   |             |   |   |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                 |   |        |    |   |             |   |   |   |
| Preferred stock, no par value, 1,000,000 shares authorized; no shares outstanding                    |   |        | -       |   |             |   | - |   |
| Preferred stock, Series A, no par value, 200,000 shares authorized; no shares outstanding            |   |        | -       |   |             |   | - |   |
| Common stock, $0.40 par value, 50,000,000 shares authorized; 9,447,648 and 9,184,081                 |   |        |    |   |             |   |   |   |
|      shares outstanding at May 1, 2010, and February 6, 2010, respectively       |   |        | 3,779   |   |             |   | 3,674 |   |
| Additional paid-in capital                                                                           |   |        | 29,165  |   |             |   | 29,017 |   |
| Retained earnings                                                                                    |   |        | 46,932  |   |             |   | 41,516 |   |
| Accumulated other comprehensive loss                                                                 |   |        | (14,606 | )      |             |   | (14,887 | ) |
|                                                                                                 |   |        | 65,270  |   |             |   | 59,320 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
| Treasury stock - at cost, 2,133,566 and 2,175,591 at May 1, 2010, and February 6, 2010, respectively |   |        | (48,051 | )      |             |   | (49,132 | ) |
|                                                                                                 |   |        |    |   |             |   |   |   |
|      Total stockholders' equity                                                  |   |        | 17,219  |   |             |   | 10,188 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |
|      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                  |   | $           | 160,014 |   |             | $      | 166,591 |   |
|                                                                                                 |   |        |    |   |             |   |   |   |

Interim

| in thousands, except share and per share data                                                   |   | 12 Weeks Ended |      |
|-------------------------------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                                            |   | May 1, 2010    |      |   | May 2, 2009 |   |
|                                                                                            |   |           |      |   |   |   |
| Net sales                                                                                       |   | $              | 95,498    |   |   | $ | 93,467 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Cost and expenses:                                                                              |   |           |      |   |   |   |   |   |
|      Cost of sales (exclusive of depreciation and amortization shown below) |   |           | 6,522     |   |   |   | 7,005 |   |
|      Selling, general and administrative expenses                           |   |           | 73,821    |   |   |   | 75,107 |   |
|      Depreciation and amortization                                          |   |           | 4,465     |   |   |   | 6,039 |   |
|      Other charges and impairments                                          |   |           | 296       |   |   |   | 420 |   |
|                                                                                            |   |           | 85,104    |   |   |   | 88,571 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Income from operations                                                                          |   |           | 10,394    |   |   |   | 4,896 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Interest expense                                                                                |   |           | 1,321     |   |   |   | 1,491 |   |
| Interest income                                                                                 |   |           | 68        |   |   |   | 122 |   |
| Other income, net                                                                               |   |           | 710       |   |   |   | 9 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Income before income tax provision                                                              |   |           | 9,851     |   |   |   | 3,536 |   |
| Income tax provision                                                                            |   |           | 3,311     |   |   |   | 1,207 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| NET INCOME                                                                                      |   | $              | 6,540     |   |   | $ | 2,329 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| NET INCOME PER COMMON SHARE                                                                     |   |           |      |   |   |   |   |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Net income per common share - diluted                                                           |   | $              | 0.91      |   |   | $ | 0.34 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Net income per common share - basic                                                             |   | $              | 0.91      |   |   | $ | 0.34 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent                                         |   |           |      |   |   |   |   |   |
|      shares outstanding - diluted                                           |   |           | 7,176,477 |   |   |   | 6,948,799 |   |
|                                                                                            |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent                                         |   |           |      |   |   |   |   |   |
|      shares outstanding - basic                                             |   |           | 7,169,316 |   |   |   | 6,948,799 |   |
|                                                                                            |   |           |      |   |   |   |   |   |

Interim

| in thousands, except share and per share data             |   |   |   |   |       |   |   |     |   |   | Accumulated   |   |   |     |    |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|----------|---------|--------|--------|--------|
|                                                      |   |   |   |   | Additional |   |   |     |   |   | other         |   |   | Treasury |    |   |   |   |
|                                                      |   | Common |   |   | paid-in    |   |   | Retained |   |   | comprehensive |   |   | stock,   |    |   |   |   |
|                                                      |   | stock  |   |   | capital    |   |   | earnings |   |   | loss          |   |   | at cost  |    |   | Total  |   |
|                                                      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |
| Balance at February 6, 2010                               |   | $      | 3,674  |   |       | $      | 29,017 |     |   | $      | 41,516        |   |   | $        | (14,887 | )      |   | $      | (49,132 | ) |   | $ | 10,188 |   |
|                                                      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net income                                                |   |   | -      |   |       |   | -      |     |   |   | 6,540         |   |   |     | -       |   |   |   | - |   |   |   | 6,540 |   |
| Total other comprehensive income, net of tax effect  |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | 281     |   |   |   | - |   |   |   | 281 |   |
|   (consisting of foreign exchange impact)            |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   |   |   |
|   Total comprehensive income                         |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   | 6,821 |   |
| Surrender of employee shares for taxes                    |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | -       |   |   |   | (183 | ) |   |   | (183 | ) |
| Issuance of common stock and restricted stock awards, net |   |   | 105    |   |       |   | (255   | )   |   |   | -             |   |   |     | -       |   |   |   | 1,264 |   |   |   | 1,114 |   |
|     of forfeitures (319,557 shares)        |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Stock-based compensation recognized                       |   |   | -      |   |       |   | 385    |     |   |   | -             |   |   |     | -       |   |   |   | - |   |   |   | 385 |   |
| Increased tax benefit related to stock-based compensation |   |   | -      |   |       |   | 18     |     |   |   | -             |   |   |     | -       |   |   |   | - |   |   |   | 18 |   |
| Dividends ($0.16 per common share)                        |   |   | -      |   |       |   | -      |     |   |   | (1,124        | )      |   |     | -       |   |   |   | - |   |   |   | (1,124 | ) |
|                                                      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Balance at May 1, 2010                                    |   | $      | 3,779  |   |       | $      | 29,165 |     |   | $      | 46,932        |   |   | $        | (14,606 | )      |   | $      | (48,051 | ) |   | $ | 17,219 |   |
|                                                      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |   |   |   |   |   |   |   |   |

Interim

| in thousands                                                                              |   | 12 Weeks Ended |   |
|-------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                      |   | May 1, 2010    |   |   | May 2, 2009 |   |
| Reconciliation of net income to cash flows provided by (used in) operating activities:    |   |           |   |   |   |   |
|                                                                                      |   |           |   |   |   |   |
| Net income                                                                                |   | $              | 6,540  |   |   | $ | 2,329 |   |
|                                                                                      |   |           |   |   |   |   |   |   |
| Adjustments for items not requiring (providing) cash:                                     |   |           |   |   |   |   |   |   |
|      Depreciation and amortization                                    |   |           | 4,465  |   |   |   | 6,039 |   |
|      Amortization of prepaid debt fees                                |   |           | 318    |   |   |   | 193 |   |
|      Stock-based compensation expense                                 |   |           | 765    |   |   |   | 158 |   |
|      Gain on sale of assets held for sale                             |   |           | (112   | ) |   |   | - |   |
|      Loss (gain) on disposition of property and equipment             |   |           | 63     |   |   |   | (157 | ) |
|      Deferred income tax provision                                    |   |           | 2,334  |   |   |   | 1,375 |   |
|      Change in interest rate swap                                     |   |           | (680   | ) |   |   | (306 | ) |
|      Pension, supplemental retirement plan and profit sharing expense |   |           | 458    |   |   |   | 186 |   |
|                                                                                      |   |           |   |   |   |   |   |   |
| Increase (decrease) in cash flow from operating assets and liabilities:                   |   |           |   |   |   |   |   |   |
|      Accounts receivable                                              |   |           | (219   | ) |   |   | (1,223 | ) |
|      Inventories                                                      |   |           | (463   | ) |   |   | 222 |   |
|      Prepaid expenses and other current assets                        |   |           | 84     |   |   |   | (1,794 | ) |
|      Accounts payable                                                 |   |           | 1,057  |   |   |   | 1,316 |   |
|      Contribution to pension plan                                     |   |           | (350   | ) |   |   | (516 | ) |
|      Accrued expenses and other liabilities                           |   |           | (3,692 | ) |   |   | (4,955 | ) |
|      Income taxes payable                                             |   |           | 755    |   |   |   | (154 | ) |
|      Deferred revenues and related costs                              |   |           | 606    |   |   |   | 3,627 |   |
|      Other                                                            |   |           | (75    | ) |   |   | (352 | ) |
|                                                                                      |   |           |   |   |   |   |   |   |
| Cash flows provided by operating activities                                               |   |           | 11,854 |   |   |   | 5,988 |   |
|                                                                                      |   |           |   |   |   |   |   |   |

| in thousands                                                                                       |   | 12 Weeks Ended |    |
|----------------------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                                               |   | May 1, 2010    |    |   | May 2, 2009 |   |
|                                                                                               |   |           |    |   |   |   |
| Cash flows provided by operating activities                                                        |   |           | 11,854  |   |   |   | 5,988 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
| Cash flows used in financing activities:                                                           |   |           |    |   |   |   |   |   |
|      Repayment of long-term debt                                               |   |           | (10,686 | ) |   |   | (288 | ) |
|      Payment of debt issuance costs                                            |   |           | -       |   |   |   | (943 | ) |
|      Cash dividends                                                            |   |           | (1,124  | ) |   |   | (1,083 | ) |
|      Other                                                                     |   |           | (165    | ) |   |   | (32 | ) |
|                                                                                               |   |           |    |   |   |   |   |   |
|      Cash flows used in financing activities                                   |   |           | (11,975 | ) |   |   | (2,346 | ) |
|                                                                                               |   |           |    |   |   |   |   |   |
| Cash flows (used in) provided by investing activities:                                             |   |           |    |   |   |   |   |   |
|      Additions to property and equipment                                       |   |           | (4,791  | ) |   |   | (907 | ) |
|      Proceeds from sale of assets held for sale                                |   |           | 326     |   |   |   | - |   |
|      Proceeds from sale of property and equipment                              |   |           | -       |   |   |   | 335 |   |
|      Other                                                                     |   |           | (228    | ) |   |   | 50 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
|      Cash flows used in investing activities                                   |   |           | (4,693  | ) |   |   | (522 | ) |
|                                                                                               |   |           |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                       |   |           | (425    | ) |   |   | 54 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                               |   |           | (5,239  | ) |   |   | 3,174 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                   |   |           | 18,913  |   |   |   | 23,665 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                         |   | $              | 13,674  |   |   | $ | 26,839 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
| Supplemental cash flow information:                                                                |   |           |    |   |   |   |   |   |
|      Interest paid                                                             |   | $              | 1,747   |   |   | $ | 1,461 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
|      Income taxes paid (received), net                                         |   | $              | 189     |   |   | $ | (57 | ) |
|                                                                                               |   |           |    |   |   |   |   |   |
| Supplemental non-cash financing activities:                                                        |   |           |    |   |   |   |   |   |
|      Issuance of treasury stock under the Employee Profit Sharing Plan         |   | $              | 733     |   |   | $ | 594 |   |
|                                                                                               |   |           |    |   |   |   |   |   |
|      Issuance of restricted stock and stock options to employees and directors |   | $              | 3,281   |   |   | $ | 714 |   |
|                                                                                               |   |           |    |   |   |   |   |   |

Notes

| NOTE 1   - | DESCRIPTION OF BUSINESS AND INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
|---------------------------|-----------------------------------------------------------------------|

| NOTE 2   - | ADOPTION OF NEW ACCOUNTING STANDARDS |
|---------------------------|--------------------------------------|

| NOTE 3   - | FAIR VALUE MEASUREMENTS |
|---------------------------|-------------------------|

| Level 1 - |   | Inputs were unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.                                                                                                                                                         |
|-----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                                                                         |
| Level 2 - |   | Inputs (other than quoted prices included in Level 1) were either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.                 |
|      |   |                                                                                                                                                                                                                                                                         |
| Level 3 - |   | Inputs reflected management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration was given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |

|                          |   | Fair Value Measurements |   |
|-------------------------------|--------|-------------------------|--------|
|                          |   | Level 1                 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Liabilities                   |   |                    |   |   |   |   |   |   |   |   |   |   |
|   Interest rate swap (1) |   | $                       | -      |   |   | $ | 1.3 |   |   | $ | - |   |   | $ | 1.3 |   |

| (1) | The total fair value of the interest rate swap is included in Accrued expenses and other liabilities as of May 1, 2010.  This financial instrument was valued using the “income approach” valuation technique.  This method used valuation techniques to convert future amounts to a single present amount.  The measurement was based on the value indicated by current market expectations about those future amounts.  The Company uses its interest rate swap as a means of managing interest rates on its outstanding fixed-rate debt obligations.  Accordingly, the fair market value is estimated to approximate the recorded value of this instrument.  The fair value of the interest rate swap at May 1, 2010, and February 6, 2010, was $1.3 million and $2.0 million, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 4   - | NEW LICENSE AGREEMENT |
|---------------------------|-----------------------|

| NOTE 5  - | INVENTORIES |
|---------------------|-------------|

| in thousands                              |   | May 1, 2010 |   |   | February 6, 2010 |   |
|-------------------------------------------|--------|-------------|--------|--------|------------------|--------|
|                                      |   |        |   |   |             |   |
| Raw materials - film, paper and chemicals |   | $           | 2,016  |   |             | $      | 2,181 |   |
| Portraits in process                      |   |        | 1,254  |   |             |   | 1,138 |   |
| Finished portraits pending delivery       |   |        | 147    |   |             |   | 91 |   |
| Frames and accessories                    |   |        | 246    |   |             |   | 258 |   |
| Studio supplies                           |   |        | 3,045  |   |             |   | 2,840 |   |
| Equipment repair parts and supplies       |   |        | 829    |   |             |   | 650 |   |
| Other                                     |   |        | 447    |   |             |   | 307 |   |
|                                      |   |        |   |   |             |   |   |   |
| Total                                     |   | $           | 7,984  |   |             | $      | 7,465 |   |
|                                      |   |        |   |   |             |   |   |   |

| NOTE 6  - | ASSETS HELD FOR SALE |
|---------------------|----------------------|

| in thousands                                    |   | May 1, 2010 |   |   | February 6, 2010 |   |
|-------------------------------------------------|--------|-------------|--------|--------|------------------|--------|
|                                            |   |        |   |   |             |   |
| Land                                            |   | $           | 2,203  |   |             | $      | 2,203 |   |
| Buildings and building improvements             |   |        | 4,775  |   |             |   | 4,135 |   |
| Photographic, sales and manufacturing equipment |   |        | 194    |   |             |   | - |   |
|                                            |   |        |   |   |             |   |   |   |
|      Assets held for sale   |   | $           | 7,172  |   |             | $      | 6,338 |   |
|                                            |   |        |   |   |             |   |   |   |

| NOTE 7  - | GOODWILL AND INTANGIBLE ASSETS |
|---------------------|--------------------------------|

| in thousands                           |   | May 1, 2010 |   |   | February 6, 2010 |   |
|----------------------------------------|--------|-------------|--------|--------|------------------|--------|
|                                   |   |        |   |   |             |   |
| PCA acquisition                        |   | $           | 21,227 |   |             | $      | 21,227 |   |
|                                   |   |        |   |   |             |   |   |   |
| Goodwill from prior acquisitions       |   |        | 512    |   |             |   | 512 |   |
|                                   |   |        |   |   |             |   |   |   |
| Translation impact on foreign balances |   |        | 92     |   |             |   | (19 | ) |
|                                   |   | $           | 21,831 |   |             | $      | 21,720 |   |
|                                   |   |        |   |   |             |   |   |   |

| in thousands            |   | Net Balance  |   |   |        |   |   |         |   |   | Translation      |   |   | Net Balance |   |
|-------------------------|--------|--------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------------|--------|--------|-------------|--------|
|                    |   | at Beginning |   |   |        |   |   | Accumulated  |   |   | Impact of        |   |   | at End of   |   |
|                    |   | of Period    |   |   | Acquisition |   |   | Amortization |   |   | Foreign Balances |   |   | Period      |   |
|                    |   |         |   |   |        |   |   |         |   |   |             |   |   |        |   |
| Acquired host agreement |   | $            | 38,238 |   |        | $      | -      |         |   | $      | (472             | )      |   | $           | 351    |   |   | $ | 38,117 |   |
| Acquired customer lists |   |         | 422    |   |        |   | 257    |         |   |   | (48              | )      |   |        | 4      |   |   |   | 635 |   |
|                    |   | $            | 38,660 |   |        | $      | 257    |         |   | $      | (520             | )      |   | $           | 355    |   |   | $ | 38,752 |   |
|                    |   |         |   |   |        |   |   |         |   |   |             |   |   |        |   |   |   |   |   |   |

| NOTE 8  - | OTHER ASSETS AND OTHER LIABILITIES  |
|---------------------|------------------------------------------|

| NOTE 9  - | STOCK-BASED COMPENSATION PLANS  |
|---------------------|--------------------------------------|

|            |          |   | Options Outstanding and Exercisable |
|-----------------|---------------|--------|-------------------------------------|
|            |          |   |                                |   | Weighted-Average |   |   |   |   |   |   |
| Range of        |          |   | Number of Shares                    |   | Remaining Contractual |   | Weighted-Average |   | Number of Shares |   |  Weighted-Average |
| Exercise Prices |          |   | Outstanding                         |   | Life (Years) |   | Exercise Price |   | Exercisable |   |  Exercise Price |
| $               | 12.21 - 13.58 |   |                                |   | 217,500 |   |   | 6.95 |   | $ | 13.04 |   |   | - |   |   | $ | - |
|            |          |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total           |          |   |                                | 217,500 |   |   | 6.95 |   | $ | 13.04 |   |   | - |   |   | $ | - |
|            |          |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Award Recipient                            |   | Compensation                         |   | Shares Awarded |   | Grant Date |      | Vesting Date |     |
|--------------------------------------------|--------|--------------------------------------|--------|----------------|--------|------------|-----------|--------------|----------|
|                                       |   |                                 |   |           |   |       |      |         |     |
| Board of Directors Members                 |   | Director Annual Retainers            |   |           | 16,017 |       | 2/12/2010 |         | 2/5/2011 |   |
| Chairman of the Board                      |   | Retention - Q1                       |   |           | 3,823  |       | 2/19/2010 |         | 5/1/2010 |   |
| Executive Management                       |   | Retention - Long-term Incentive Plan |   |           | 67,000 |       | 3/12/2010 |         |     | (1 | ) |
| Certain Management Members                 |   | Retention - Long-term Incentive Plan |   |           | 22,000 |       | 3/29/2010 |         |     | (1 | ) |
| Executive Management and Certain Employees |   | 2009 Performance                     |   |           | 88,806 |       | 3/29/2010 |         | 2/5/2011 |   |
| Board of Directors Members                 |   | Director Annual Retainers            |   |           | 21,356 |       | 4/15/2010 |         | 2/5/2011 |   |
| Executive Chairman of the Board            |   | Retention - Long-term Incentive Plan |   |           | 17,162 |       | 4/19/2010 |         |     | (2 | ) |

| (1)   | Vest in 25% increments on the last day of the fiscal year over a four-year period commencing on February 5, 2011. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (2)   | Vest in 25% increments on the last day of the fiscal year over a four-year period commencing on February 5, 2011, or earlier upon certain acceleration events. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | 12 Weeks Ended May 1, 2010 |    |
|------------------------------------------|--------|----------------------------|---------|
|                                     |   |                       |    |   | Weighted-Average |   |
|                                     |   | Shares                     |    |   | Grant-Date Value |   |
| Nonvested stock, beginning of period     |   |                       | 528     |   |   | $ | 18.95 |   |
| Granted                                  |   |                       | 236,164 |   |   |   | 13.89 |   |
| Vested                                   |   |                       | (3,823  | ) |   |   | 14.05 |   |
| Nonvested stock, end of period           |   |                       | 232,869 |   |   | $ | 13.90 |   |
|                                     |   |                       |    |   |   |   |   |   |
| Stock-based compensation expense related |   |                       |    |   |   |   |   |   |
| to nonvested stock                       |   | $                          | 340,000 |   |   |   |   |   |
|                                     |   |                       |    |   |   |   |   |   |

| NOTE 10 - | EMPLOYEE BENEFIT PLANS |
|----------------|------------------------|

|                                      |   | 12 Weeks Ended |   |   | 12 Weeks Ended               |   |
|-------------------------------------------|--------|----------------|--------|--------|------------------------------|--------|
| in thousands                              |   | Pension Plan   |   |   | Supplemental Retirement Plan |   |
|                                      |   | May 1, 2010    |   |   | May 2, 2009                  |   |   | May 1, 2010 |   |   | May 2, 2009 |   |
| Components of net periodic benefit costs: |   |           |   |   |                         |   |   |   |   |   |   |   |
| Service cost                              |   | $              | -      |   |                         | $      | - |   |   | $ | - |   |   | $ | - |   |
| Interest cost                             |   |           | 715    |   |                         |   | 713 |   |   |   | 18 |   |   |   | 19 |   |
| Expected return on plan assets            |   |           | (715   | )      |                         |   | (725 | ) |   |   | - |   |   |   | - |   |
| Amortization of prior service cost        |   |           | -      |   |                         |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of net loss (gain)           |   |           | 282    |   |                         |   | 59 |   |   |   | (18 | ) |   |   | (35 | ) |
|                                      |   |           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost                 |   | $              | 282    |   |                         | $      | 47 |   |   | $ | - |   |   | $ | (16 | ) |
|                                      |   |           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

| NOTE 11  - | INCOME TAXES |
|----------------------|--------------|

| ● | Unrecognized tax benefits were approximately $2.7 million at both May 1, 2010, and February 6, 2010.  If these unrecognized tax benefits were recognized, approximately $2.7 million would impact the effective tax rate.  It is not expected the amount of these unrecognized tax benefits will change in the next 12 months.                                                                                                                    |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | The Company recognizes interest expense and penalties related to the above-unrecognized tax benefits within income tax expense.  Due to the nature of the unrecognized tax benefits, the Company had $25,000 and $21,000 accrued interest and penalties as of May 1, 2010, and February 6, 2010, respectively.                                                                                                                                         |
| ● | The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, many states, Mexican and Canadian jurisdictions.  The Company is no longer subject to U.S. Federal income tax examination for the years prior to 2003.   The Internal Revenue Service has requested certain specific information related to the 2005 and 2008 tax years. There are currently no ongoing examinations by state taxing authorities. |

| NOTE 12   - | COMMITMENTS AND CONTINGENCIES |
|----------------------------|-------------------------------|

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

|                                             |   | May 1, 2010 |   |   | May 2, 2009 |   |
|--------------------------------------------------|--------|-------------|--------|--------|-------------|--------|
| Within Sears stores:                             |   |        |   |   |        |   |
| United States and Puerto Rico                    |   |        | 865    |   |        |   | 884 |   |
| Canada                                           |   |        | 110    |   |        |   | 110 |   |
|                                             |   |        |   |   |        |   |   |   |
| Within Walmart stores:                           |   |        |   |   |        |   |   |   |
| United States and Puerto Rico                    |   |        | 1,534  |   |        |   | 1,617 |   |
| Canada                                           |   |        | 260    |   |        |   | 259 |   |
| Mexico                                           |   |        | 103    |   |        |   | 113 |   |
|                                             |   |        |   |   |        |   |   |   |
| Within Babies "R" Us stores in the United States |   |        | 2      |   |        |   | - |   |
|                                             |   |        |   |   |        |   |   |   |
| Locations not within above host stores           |   |        | 33     |   |        |   | 30 |   |
|                                             |   |        |   |   |        |   |   |   |
| Total                                            |   |        | 2,907  |   |        |   | 3,013 |   |
|                                             |   |        |   |   |        |   |   |   |

| in thousands, except per share data                                    |   | 12 Weeks Ended |      |
|------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                   |   | May 1, 2010    |      |   | May 2, 2009 |   |
|                                                                   |   |           |      |   |   |   |
| Net sales                                                              |   | $              | 95,498    |   |   | $ | 93,467 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Cost and expenses:                                                     |   |           |      |   |   |   |   |   |
| Cost of sales (exclusive of depreciation and amortization shown below) |   |           | 6,522     |   |   |   | 7,005 |   |
| Selling, general and administrative expenses                           |   |           | 73,821    |   |   |   | 75,107 |   |
| Depreciation and amortization                                          |   |           | 4,465     |   |   |   | 6,039 |   |
| Other charges and impairments                                          |   |           | 296       |   |   |   | 420 |   |
|                                                                   |   |           | 85,104    |   |   |   | 88,571 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Income from operations                                                 |   |           | 10,394    |   |   |   | 4,896 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Interest expense                                                       |   |           | 1,321     |   |   |   | 1,491 |   |
| Interest income                                                        |   |           | 68        |   |   |   | 122 |   |
| Other income, net                                                      |   |           | 710       |   |   |   | 9 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Income before income tax provision                                     |   |           | 9,851     |   |   |   | 3,536 |   |
| Income tax provision                                                   |   |           | 3,311     |   |   |   | 1,207 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| NET INCOME                                                             |   | $              | 6,540     |   |   | $ | 2,329 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| NET INCOME PER COMMON SHARE                                            |   |           |      |   |   |   |   |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Net income per common share - diluted                                  |   | $              | 0.91      |   |   | $ | 0.34 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Net income per common share - basic                                    |   | $              | 0.91      |   |   | $ | 0.34 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent                |   |           |      |   |   |   |   |   |
| shares outstanding - diluted                                           |   |           | 7,176,477 |   |   |   | 6,948,799 |   |
|                                                                   |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent                |   |           |      |   |   |   |   |   |
| shares outstanding - basic                                             |   |           | 7,169,316 |   |   |   | 6,948,799 |   |
|                                                                   |   |           |      |   |   |   |   |   |

| ●   | Net sales for the first quarter of fiscal 2010 increased $2.0 million, or 2%, to $95.5 million from the $93.5 million reported in the fiscal 2009 first quarter.  Excluding the negative impact of store closures ($2.3 million) and the positive impacts of a net revenue recognition change ($3.1 million), foreign currency translation ($2.2 million), and other items totaling $1.1 million, comparable same-store sales decreased approximately 2%. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Cost of sales, excluding depreciation and amortization expense, declined to $6.5 million in the first quarter of 2010, from $7.0 million in the first quarter of 2009.  The decrease is principally attributable to improved product mix and increased productivity from lab consolidations. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Selling, general and administrative (SG&A) expense declined to $73.8 million in the first quarter from $75.1 million in the prior-year quarter primarily due to reductions in studio employment costs from improved scheduling and selected operating hour reductions, offset in part by increases in incentive compensation and host commission expenses. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Depreciation and amortization expense was $4.5 million in the first quarter of 2010, compared with $6.0 million in the first quarter of 2009.  Depreciation expense decreased as a result of the full depreciation of certain assets acquired in connection with the 2005 digital conversion of SPS and 2007 acquisition of PCA and the closure of certain PMPS locations throughout fiscal 2009. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | In the first quarter of 2010, the Company recognized a $296,000 charge in other charges and impairments, compared with a $420,000 charge in the first quarter of 2009.  The charges are primarily related to lab closures and costs incurred in connection with the Kiddie Kandids asset acquisition. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| in thousands                            |   | 12 Weeks Ended |    |
|-----------------------------------------|--------|----------------|---------|
|                                    |   | May 1, 2010    |    |   | May 2, 2009 |   |
| Net cash (used in) provided by:         |   |           |    |   |   |   |
| Operating activities                    |   | $              | 11,854  |   |   | $ | 5,988 |   |
| Financing activities                    |   |           | (11,975 | ) |   |   | (2,346 | ) |
| Investing activities                    |   |           | (4,693  | ) |   |   | (522 | ) |
| Effect of exchange rate changes on cash |   |           | (425    | ) |   |   | 54 |   |
| Net (decrease) increase in cash         |   | $              | (5,239  | ) |   | $ | 3,174 |   |
|                                    |   |           |    |   |   |   |   |   |

| Item 3. |   | Quantitative and Qualitative Disclosures About Market Risk |
|---------|--------|------------------------------------------------------------|

| Notional amount        |   | $                  | 57,500,000 |   |
|------------------------|--------|--------------------|------------|--------|
|                   |   |               |       |   |
| Fixed rate paid        |   |               | 4.97       | %      |
|                   |   |               |       |   |
| Variable rate received |   |               | 0.26       | %      |
|                   |   |               |       |   |
| Effective date         |   | September 17, 2007 |       |
|                   |   |               |       |   |
| Expiration date        |   | September 17, 2010 |       |

| Item 4. |   | Controls and Procedures |
|---------|--------|-------------------------|

| a)   | Evaluation of Disclosure Controls and Procedures |
|----------------|--------------------------------------------------|

| b)   | Changes in Internal Control Over Financial Reporting |
|----------------|------------------------------------------------------|

PART

| Item 6. |   | Exhibits |
|---------|--------|----------|

SIGNATURES

EXHIBIT

| EXHIBIT     |    |                                                                                                                         |
|-------------|---------|------------------------------------------------------------------------------------------------------------------------------|
| NUMBER      |    | DESCRIPTION                                                                                                                  |
|        |    |                                                                                                                         |
| 10.47       | *       | CPI Corp. Non-Employee Directors Restricted Stock Award Agreement pursuant to the CPI Corp. Omnibus Incentive Plan |
|        |    | effective as of April 15, 2010, filed within this Form 10-Q as Exhibit 10.47.                                                |
|        |    |                                                                                                                         |
|  10.48 | *  | Restricted Stock Award Agreement pursuant to the Executive Chairman's Agreement by and between CPI Corp. and                 |
|        |    | David Meyer, dated April 19, 2010, filed within this Form 10-Q as Exhibit 10.48.                                             |
|        |    |                                                                                                                         |
| 11.1        |    | Computation of Per Common Share Income - Diluted - for the 12 weeks ended May 1, 2010, and May 2, 2009.                      |
|        |    |                                                                                                                         |
| 11.2        |    | Computation of Per Common Share Income - Basic - for the 12 weeks ended May 1, 2010, and May 2, 2009.                        |
|        |    |                                                                                                                         |
| 31.1        |    | Certification Pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934 by the Chief Executive Officer.       |
|        |    |                                                                                                                         |
| 31.2        |    | Certification Pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934 by the Chief Financial Officer.       |
|        |    |                                                                                                                         |
| 32.0        |    | Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002       |
|        |    | by the Chief Executive Officer and the Chief Financial Officer.                                                              |

| * | Management contract or compensatory plan available to employees, officers or directors. |
|---|-----------------------------------------------------------------------------------------|