----

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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                                     |   |   |
|          |   |                  |   | April 30, 2011 (Unaudited) and February 5, 2011                         |   | 1 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statements of Operations (Unaudited)               |   |   |
|          |   |                  |   | 12 Weeks Ended April 30, 2011 and May 1, 2010                           |   | 3 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statement of Changes in Stockholders'              |   |   |
|          |   |                  |   | Equity (Unaudited) 12 Weeks Ended April 30, 2011                        |   | 4 |
|          |   |                  |   |                                                                    |   |   |
|          |   |                  |   | Interim Consolidated Statements of Cash Flow (Unaudited)                |   |   |
|          |   |                  |   | 12 Weeks Ended April 30, 2011 and May 1, 2010                           |   | 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              |   | 21 |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 4.               |   | Controls and Procedures                                                 |   | 21 |
|          |   |                  |   |                                                                    |   |   |
| PART II.      |   | OTHER INFORMATION     |   |                                                                    |
|          |   |                  |   |                                                                    |   |   |
|          |   | Item 6.               |   | Exhibits                                                                |   | 22 |
|          |   |                  |
| SIGNATURES    |   |                  |   | 23                                                                      |
|          |   |                  |
| EXHIBIT INDEX |   |                  |   | 24                                                                      |

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

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

Balance

| in thousands                                    |   | April 30, 2011 |    |   |             |   |
|-------------------------------------------------|--------|----------------|---------|--------|------------------|--------|
|                                            |   | (Unaudited)    |    |   | February 5, 2011 |   |
|                                            |   |           |    |   |             |   |
| ASSETS                                          |   |           |    |   |             |   |
| Current assets:                                 |   |           |    |   |             |   |
| Cash and cash equivalents                       |   | $              | 6,131   |   |             | $      | 5,363 |   |
| Accounts receivable:                            |   |           |    |   |             |   |   |   |
| Trade                                           |   |           | 7,962   |   |             |   | 4,707 |   |
| Other                                           |   |           | 774     |   |             |   | 971 |   |
| Inventories                                     |   |           | 8,102   |   |             |   | 7,460 |   |
| Prepaid expenses and other current assets       |   |           | 5,147   |   |             |   | 4,971 |   |
| Refundable income taxes                         |   |           | 1,067   |   |             |   | - |   |
| Deferred tax assets                             |   |           | 2,455   |   |             |   | 5,976 |   |
| Assets held for sale                            |   |           | 641     |   |             |   | 641 |   |
|                                            |   |           |    |   |             |   |   |   |
| Total current assets                            |   |           | 32,279  |   |             |   | 30,089 |   |
|                                            |   |           |    |   |             |   |   |   |
| Property and equipment:                         |   |           |    |   |             |   |   |   |
| Land                                            |   |           | 2,185   |   |             |   | 2,185 |   |
| Buildings and building improvements             |   |           | 25,343  |   |             |   | 25,343 |   |
| Leasehold improvements                          |   |           | 4,524   |   |             |   | 4,383 |   |
| Photographic, sales and manufacturing equipment |   |           | 178,280 |   |             |   | 176,974 |   |
| Property not in use (see Note 4)                |   |           | 3,401   |   |             |   | 3,401 |   |
| Total                                           |   |           | 213,733 |   |             |   | 212,286 |   |
| Less accumulated depreciation and amortization  |   |           | 179,017 |   |             |   | 176,288 |   |
|  Property and equipment, net               |   |           | 34,716  |   |             |   | 35,998 |   |
|                                            |   |           |    |   |             |   |   |   |
| Prepaid debt fees                               |   |           | 1,683   |   |             |   | 1,838 |   |
| Goodwill                                        |   |           | 21,991  |   |             |   | 22,874 |   |
| Intangible assets, net                          |   |           | 37,558  |   |             |   | 37,862 |   |
| Deferred tax assets                             |   |           | 11,238  |   |             |   | 7,166 |   |
| Other assets                                    |   |           | 8,676   |   |             |   | 7,973 |   |
|                                            |   |           |    |   |             |   |   |   |
| TOTAL ASSETS                                    |   | $              | 148,141 |   |             | $      | 143,800 |   |
|                                            |   |           |    |   |             |   |   |   |

| in thousands, except share and per share data                                                                  |   | April 30, 2011 |    |    |             |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------------|---------|---------|------------------|--------|
|                                                                                                           |   | (Unaudited)    |    |    | February 5, 2011 |   |
|                                                                                                           |   |           |    |    |             |   |
| LIABILITIES                                                                                                    |   |           |    |    |             |   |
| Current liabilities:                                                                                           |   |           |    |    |             |   |
| Accounts payable                                                                                               |   | $              | 8,434   |    |             | $      | 7,583 |   |
| Accrued employment costs                                                                                       |   |           | 9,049   |    |             |   | 8,905 |   |
| Customer deposit liability                                                                                     |   |           | 18,933  |    |             |   | 16,403 |   |
| Sales taxes payable                                                                                            |   |           | 2,963   |    |             |   | 3,767 |   |
| Accrued advertising expenses                                                                                   |   |           | 1,586   |    |             |   | 995 |   |
| Accrued expenses and other liabilities                                                                         |   |           | 11,074  |    |             |   | 11,550 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| Total current liabilities                                                                                      |   |           | 52,039  |    |             |   | 49,203 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| Long-term debt, less current maturities                                                                        |   |           | 52,900  |    |             |   | 48,900 |   |
| Accrued pension plan obligations                                                                               |   |           | 14,683  |    |             |   | 14,862 |   |
| Other liabilities                                                                                              |   |           | 15,518  |    |             |   | 16,565 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| Total liabilities                                                                                              |   |           | 135,140 |    |             |   | 129,530 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| CONTINGENCIES (see Note 10)                                                                                    |   |           |    |    |             |   |   |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| 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; 9,105,217 and 9,129,013                           |   |           |    |    |             |   |   |   |
| shares outstanding at April 30, 2011, and February 5, 2011, respectively                                       |   |           | 3,656   |    |             |   | 3,652 |   |
| Additional paid-in capital                                                                                     |   |           | 30,996  |    |             |   | 30,785 |   |
| Retained earnings                                                                                              |   |           | 38,902  |    |             |   | 40,794 |   |
| Accumulated other comprehensive loss                                                                           |   |           | (12,513 | )       |             |   | (12,927 | ) |
|                                                                                                           |   |           | 61,041  |    |             |   | 62,304 |   |
| Treasury stock - at cost, 2,100,289 and 2,133,566 shares at April 30, 2011, and February 5, 2011, respectively |   |           | (47,988 | )  |             |   | (48,050 | )  |
|                                                                                                           |   |           |    |    |             |   |   |   |
| Total CPI Corp. stockholders' equity                                                                           |   |           | 13,053  |    |             |   | 14,254 |   |
| Noncontrolling interest in subsidiary (see Note 2)                                                             |   |           | (52     | )       |             |   | 16 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| Total stockholders' equity                                                                                     |   |           | 13,001  |    |             |   | 14,270 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                     |   | $              | 148,141 |    |             | $      | 143,800 |   |
|                                                                                                           |   |           |    |    |             |   |   |   |

Statements

| in thousands, except share and per share data                                      |   | 12 Weeks Ended |      |
|------------------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                               |   | April 30, 2011 |      |   | May 1, 2010 |   |
|                                                                               |   |           |      |   |   |   |
| Net sales                                                                          |   | $              | 88,638    |   |   | $ | 95,498 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Cost and expenses:                                                                 |   |           |      |   |   |   |   |   |
| Cost of sales (exclusive of depreciation and amortization shown below)             |   |           | 6,189     |   |   |   | 6,522 |   |
| Selling, general and administrative expenses                                       |   |           | 73,770    |   |   |   | 73,821 |   |
| Depreciation and amortization                                                      |   |           | 4,016     |   |   |   | 4,465 |   |
| Other charges and impairments                                                      |   |           | 3,177     |   |   |   | 296 |   |
|                                                                               |   |           | 87,152    |   |   |   | 85,104 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Income from operations                                                             |   |           | 1,486     |   |   |   | 10,394 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Interest expense                                                                   |   |           | 668       |   |   |   | 1,321 |   |
| Interest income                                                                    |   |           | 43        |   |   |   | 68 |   |
| Other income, net                                                                  |   |           | 106       |   |   |   | 710 |   |
| Income from operations before income tax expense                                   |   |           | 967       |   |   |   | 9,851 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Income tax expense                                                                 |   |           | 305       |   |   |   | 3,311 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Net income                                                                         |   |           | 662       |   |   |   | 6,540 |   |
| Net loss attributable to noncontrolling interest                                   |   |           | (85       | ) |   |   | - |   |
|                                                                               |   |           |      |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO CPI CORP.                                               |   | $              | 747       |   |   | $ | 6,540 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| NET INCOME PER COMMON SHARE                                                        |   |           |      |   |   |   |   |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Net income per common share attributable to CPI Corp. - diluted                    |   | $              | 0.11      |   |   | $ | 0.91 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Net income per common share attributable to CPI Corp. - basic                      |   | $              | 0.11      |   |   | $ | 0.91 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent shares outstanding-diluted |   |           | 6,998,340 |   |   |   | 7,176,477 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent shares outstanding-basic   |   |           | 6,992,140 |   |   |   | 7,169,316 |   |
|                                                                               |   |           |      |   |   |   |   |   |
|                                                                               |   |           |      |   |   |   |   |   |

Changes

| in thousands, except share and per share data            |   |   |   |   |       |   |   |     |   |   | Accumulated   |   |   |     |    |   |           |   |    |   |   |
|----------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|----------|---------|--------|----------------|--------|---------|--------|--------|
|                                                     |   |   |   |   | Additional |   |   |     |   |   | other         |   |   | Treasury |    |   |           |   |    |   |   |
|                                                     |   | Common |   |   | paid-in    |   |   | Retained |   |   | comprehensive |   |   | stock,   |    |   | Noncontrolling |   |    |   |   |
|                                                     |   | stock  |   |   | capital    |   |   | earnings |   |   | (loss) income |   |   | at cost  |    |   | Interest       |   |    | Total  |   |
|                                                     |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |
| Balance at February 5, 2011                              |   | $      | 3,652  |   |       | $      | 30,785 |     |   | $      | 40,794        |   |   | $        | (12,927 | )      |           | $      | (48,050 | )      |   | $ | 16 |   |   | $ | 14,270 |   |
|                                                     |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                        |   |   | -      |   |       |   | -      |     |   |   | 747           |   |   |     | -       |   |           |   | -       |   |   |   | (85 | ) |   |   | 662 |   |
| Total other comprehensive income, net of tax effect      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |   |   |   |   |   |   |   |
| (consisting of foreign exchange impact)                  |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | 414     |   |           |   | -       |   |   |   | - |   |   |   | 414 |   |
| Total comprehensive income                               |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | -       |   |           |   | -       |   |   |   | - |   |   |   | 1,076 |   |
| Adjustment to issuance of noncontrolling interest        |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | -       |   |           |   | -       |   |   |   | 17 |   |   |   | 17 |   |
| Surrender of employee shares for taxes                   |   |   | -      |   |       |   | -      |     |   |   | -             |   |   |     | -       |   |           |   | (690    | )      |   |   | - |   |   |   | (690 | ) |
| Purchase and retirement of stock (52,937 shares at cost) |   |   | (21    | )      |       |   | (178   | )        |   |   | (888          | )      |   |     | -       |   |           |   | -       |   |   |   | - |   |   |   | (1,087 | ) |
| Issuance of common stock and restricted stock awards,    |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |   |   |   |   |   |   |   |
| net of forfeitures (57,753 shares)                       |   |   | 23     |   |       |   | 219    |     |   |   | -             |   |   |     | -       |   |           |   | 752     |   |   |   | - |   |   |   | 994 |   |
| Stock options exercised                                  |   |   | 2      |   |       |   | (84    | )        |   |   | -             |   |   |     | -       |   |           |   | -       |   |   |   | - |   |   |   | (82 | ) |
| Stock-based compensation recognized                      |   |   | -      |   |       |   | 254    |     |   |   | -             |   |   |     | -       |   |           |   | -       |   |   |   | - |   |   |   | 254 |   |
| Dividends ($0.25 per common share)                       |   |   | -      |   |       |   | -      |     |   |   | (1,751        | )      |   |     | -       |   |           |   | -       |   |   |   | - |   |   |   | (1,751 | ) |
|                                                     |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |   |   |   |   |   |   |   |
| Balance at April 30, 2011                                |   | $      | 3,656  |   |       | $      | 30,996 |     |   | $      | 38,902        |   |   | $        | (12,513 | )      |           | $      | (47,988 | )      |   | $ | (52 | ) |   | $ | 13,001 |   |
|                                                     |   |   |   |   |       |   |   |     |   |   |          |   |   |     |    |   |           |   |    |   |   |   |   |   |   |   |   |   |

Cash

| in thousands                                                                           |   | 12 Weeks Ended |   |
|----------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                   |   | April 30, 2011 |   |   | May 1, 2010 |   |
|                                                                                   |   |           |   |   |   |   |
| Reconciliation of net income to cash flows provided by (used in) operating activities: |   |           |   |   |   |   |
|                                                                                   |   |           |   |   |   |   |
| Net income                                                                             |   | $              | 662    |   |   | $ | 6,540 |   |
|                                                                                   |   |           |   |   |   |   |   |   |
| Adjustments for items not requiring (providing) cash:                                  |   |           |   |   |   |   |   |   |
| Depreciation and amortization                                                          |   |           | 4,016  |   |   |   | 4,465 |   |
| Amortization of prepaid debt fees                                                      |   |           | 155    |   |   |   | 318 |   |
| Stock-based compensation expense                                                       |   |           | 254    |   |   |   | 765 |   |
| Deferred income tax provision                                                          |   |           | (406   | ) |   |   | 2,334 |   |
| Change in interest rate swap                                                           |   |           | -      |   |   |   | (680 | ) |
| Pension, supplemental retirement plan and profit sharing expense                       |   |           | 539    |   |   |   | 458 |   |
| Other                                                                                  |   |           | (58    | ) |   |   | (49 | ) |
|                                                                                   |   |           |   |   |   |   |   |   |
| Increase (decrease) in cash flow from operating assets and liabilities:                |   |           |   |   |   |   |   |   |
| Accounts receivable                                                                    |   |           | (3,028 | ) |   |   | (219 | ) |
| Inventories                                                                            |   |           | (594   | ) |   |   | (463 | ) |
| Prepaid expenses and other current assets                                              |   |           | 135    |   |   |   | 84 |   |
| Accounts payable                                                                       |   |           | 832    |   |   |   | 1,057 |   |
| Contribution to pension plan                                                           |   |           | (513   | ) |   |   | (350 | ) |
| Accrued expenses and other liabilities                                                 |   |           | (780   | ) |   |   | (3,692 | ) |
| Income taxes payable                                                                   |   |           | (1,318 | ) |   |   | 755 |   |
| Deferred revenues and related costs                                                    |   |           | 3,502  |   |   |   | 606 |   |
| Other                                                                                  |   |           | (1,240 | ) |   |   | (75 | ) |
|                                                                                   |   |           |   |   |   |   |   |   |
| Cash flows provided by operating activities                                            |   | $              | 2,158  |   |   | $ | 11,854 |   |
|                                                                                   |   |           |   |   |   |   |   |   |

| in thousands                                                      |   | 12 Weeks Ended |    |
|-------------------------------------------------------------------|--------|----------------|---------|
|                                                              |   | April 30, 2011 |    |   | May 1, 2010 |   |
|                                                              |   |           |    |   |   |   |
| Cash flows provided by operating activities                       |   |           | 2,158   |   |   |   | 11,854 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Cash flows provided by (used in) financing activities:            |   |           |    |   |   |   |   |   |
| Repayment of long-term debt                                       |   |           | -       |   |   |   | (10,686 | ) |
| Borrowings under revolving credit facility                        |   |           | 39,000  |   |   |   | - |   |
| Repayments on revolving credit facility                           |   |           | (35,000 | ) |   |   | - |   |
| Cash dividends                                                    |   |           | (1,751  | ) |   |   | (1,124 | ) |
| Purchase of treasury stock                                        |   |           | (1,087  | ) |   |   | - |   |
| Surrender of employee shares for taxes                            |   |           | (690    | ) |   |   | (183 | ) |
| Other                                                             |   |           | 222     |   |   |   | 18 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Cash flows provided by (used in) financing activities             |   |           | 694     |   |   |   | (11,975 | ) |
|                                                              |   |           |    |   |   |   |   |   |
| Cash flows (used in) provided by investing activities:            |   |           |    |   |   |   |   |   |
| Additions to property and equipment                               |   |           | (2,097  | ) |   |   | (4,791 | ) |
| Other                                                             |   |           | 57      |   |   |   | 98 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Cash flows used in investing activities                           |   |           | (2,040  | ) |   |   | (4,693 | ) |
|                                                              |   |           |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents      |   |           | (44     | ) |   |   | (425 | ) |
|                                                              |   |           |    |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents              |   |           | 768     |   |   |   | (5,239 | ) |
|                                                              |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                  |   |           | 5,363   |   |   |   | 18,913 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                        |   | $              | 6,131   |   |   | $ | 13,674 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Supplemental cash flow information:                               |   |           |    |   |   |   |   |   |
| Interest paid                                                     |   | $              | 433     |   |   | $ | 1,747 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Income taxes paid, net                                            |   | $              | 2,122   |   |   | $ | 189 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Supplemental non-cash financing activities:                       |   |           |    |   |   |   |   |   |
| Issuance of treasury stock under the Employee Profit Sharing Plan |   | $              | 752     |   |   | $ | 733 |   |
|                                                              |   |           |    |   |   |   |   |   |
| Issuance of restricted stock to employees and directors      |   | $              | 994     |   |   | $ | 3,281 |   |
|                                                              |   |           |    |   |   |   |   |   |

Notes

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

| NOTE 2  - | BUSINESS ACQUISITION |
|---------------------|----------------------|

|                                                      |   | First Quarter |
|-----------------------------------------------------------|--------|---------------|
|                                                      |   | 2010          |   |
|                                                      |   |          |   |
| Revenue                                                   |   | $             | 96,619 |   |
|                                                      |   |          |   |   |
| Net income                                                |   |          | 3,318 |   |
| Net loss attributable to noncontrolling interest          |   |          | (161 | ) |
| Net income attributable to CPI Corp.                      |   | $             | 3,479 |   |
|                                                      |   |          |   |   |
| Diluted income per common share attributable to CPI Corp. |   | $             | 0.48 |   |
|                                                      |   |          |   |   |
| Basic income per common share attributable to CPI Corp.   |   | $             | 0.49 |   |

| NOTE 3  - | INVENTORIES |
|---------------------|-------------|

| in thousands                              |   | April 30, 2011 |   |   | February 5, 2011 |   |
|-------------------------------------------|--------|----------------|--------|--------|------------------|--------|
|                                      |   |           |   |   |             |   |
| Raw materials - film, paper and chemicals |   | $              | 1,822  |   |             | $      | 2,130 |   |
| Portraits in process                      |   |           | 1,794  |   |             |   | 1,274 |   |
| Finished portraits pending delivery       |   |           | 213    |   |             |   | 97 |   |
| Frames and accessories                    |   |           | 173    |   |             |   | 230 |   |
| Studio supplies                           |   |           | 2,728  |   |             |   | 2,556 |   |
| Equipment repair parts and supplies       |   |           | 922    |   |             |   | 627 |   |
| Other                                     |   |           | 450    |   |             |   | 546 |   |
|                                      |   |           |   |   |             |   |   |   |
| Total                                     |   | $              | 8,102  |   |             | $      | 7,460 |   |
|                                      |   |           |   |   |             |   |   |   |

| NOTE 4  - | PROPERTY NOT IN USE |
|---------------------|---------------------|

| in thousands                            |   | April 30, 2011 |   |   | February 5, 2011 |   |
|-----------------------------------------|--------|----------------|--------|--------|------------------|--------|
|                                    |   |           |   |   |             |   |
| Land                                    |   | $              | 996    |   |             | $      | 996 |   |
| Buildings and building improvements (1) |   |           | 2,405  |   |             |   | 2,405 |   |
|                                    |   |           |   |   |             |   |   |   |
|   Property not in use              |   | $              | 3,401  |   |             | $      | 3,401 |   |
|                                    |   |           |   |   |             |   |   |   |

|   | (1) | Depreciation expense of $37,000 and $49,000 related to the building and building improvements as of April 30, 2011, and February 5, 2011, respectively, are included in the total accumulated depreciation and amortization line in the Interim Consolidated Balance Sheets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 5  - | GOODWILL AND INTANGIBLE ASSETS |
|---------------------|--------------------------------|

| in thousands                           |   | April 30, 2011 |   |   | February 5, 2011 |   |
|----------------------------------------|--------|----------------|--------|--------|------------------|--------|
|                                   |   |           |   |   |             |   |
| PCA Acquisition                        |   | $              | 21,208 |   |             | $      | 21,208 |   |
| Bella Pictures Acquisition (1)         |   |           | -      |   |             |   | 983 |   |
| Goodwill from prior acquisitions       |   |           | 512    |   |             |   | 512 |   |
| Translation impact on foreign balances |   |           | 271    |   |             |   | 171 |   |
|                                   |   |           |   |   |             |   |   |   |
| Balance, end of period                 |   | $              | 21,991 |   |             | $      | 22,874 |   |
|                                   |   |           |   |   |             |   |   |   |

|   | (1) | See Note 2 for explanation of the adjustment to the Bella Pictures® Acquisition goodwill as of April 30, 2011. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

| in thousands            |   | Net Balance  |   |   |        |   |   |         |   |   | Translation      |   |   | Net Balance |   |
|-------------------------|--------|--------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------------|--------|--------|-------------|--------|
|                    |   | at Beginning |   |   |        |   |   |         |   |   | Impact of        |   |   | at End      |   |
|                    |   | of Period    |   |   | Adjustments |   |   | Amortization |   |   | Foreign Balances |   |   | of Period   |   |
|                    |   |         |   |   |        |   |   |         |   |   |             |   |   |        |   |
| Acquired host agreement |   | $            | 36,719 |   |        | $      | -      |         |   | $      | (477             | )      |   | $           | 297    |   |   | $ | 36,539 |   |
| Acquired customer lists |   |         | 390    |   |        |   | -      |         |   |   | (44              | )      |   |        | 3      |   |   |   | 349 |   |
| Acquired tradename      |   |         | 753    |   |        |   | (67    | )            |   |   | (16              | )      |   |        | -      |   |   |   | 670 |   |
|                    |   | $            | 37,862 |   |        | $      | (67    | )            |   | $      | (537             | )      |   | $           | 300    |   |   | $ | 37,558 |   |
|                    |   |         |   |   |        |   |   |         |   |   |             |   |   |        |   |   |   |   |   |   |

| NOTE 6  - | OTHER ASSETS AND OTHER LIABILITIES |
|---------------------|------------------------------------|

| NOTE 7  - | STOCK-BASED COMPENSATION PLANS |
|---------------------|--------------------------------|

|                                     |   |   |    |   |             |   |   | Weighted-Average      |   |   | Aggregate           |   |
|------------------------------------------|--------|--------|---------|--------|------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|
|                                     |   |   |    |   | Weighted-Average |   |   | Remaining Contractual |   |   | Intrinsic Value (1) |   |
|                                     |   | Shares |    |   | Exercise Price   |   |   | Life (Years)          |   |   | (in thousands)      |   |
| Options outstanding, beginning of period |   |   | 169,166 |   |             | $      | 13.09  |                  |   |   | 5.79                |   |   | $ | - |   |
| Exercised                                |   |   | (22,500 | )      |             |   | 13.58  |                  |   |   |                |   |   |   | 248 |   |
|                                     |   |   |    |   |             |   |   |                  |   |   |                |   |   |   |   |   |
| Options outstanding, end of period       |   |   | 146,666 |   |             | $      | 13.02  |                  |   |   | 5.29                |   |   | $ | 726 |   |
|                                     |   |   |    |   |             |   |   |                  |   |   |                |   |   |   |   |   |
| Options exercisable at end of period     |   |   | 10,001  |   |             | $      | 12.21  |                  |   |   | 2.40                |   |   | $ | 58 |   |

|   (1) | Intrinsic value for activities other than exercises is defined as the difference between the Company's closing stock price on the last trading day of the fiscal 2011 first quarter and the exercise price, multiplied by the number of in-the-money options.  These amounts change based on the quoted market price of the Company's stock.  For exercises, intrinsic value is defined as the difference between the Company's closing stock price on the exercise date and the exercise price, multiplied by the number of options exercised. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | 12 Weeks Ended April 30, 2011 |    |
|-------------------------------------------------------------|--------|-------------------------------|---------|
|                                                        |   |                          |    |   | Weighted-Average |   |
|                                                        |   | Shares                        |    |   | Grant-Date Value |   |
| Nonvested stock, beginning of period                        |   |                          | 76,121  |   |   | $ | 14.26 |   |
| Granted                                                     |   |                          | 47,791  |   |   |   | 20.95 |   |
| Forfeited                                                   |   |                          | (321    | ) |   |   | 21.61 |   |
| Nonvested stock, end of period                              |   |                          | 123,591 |   |   | $ | 16.83 |   |
|                                                        |   |                          |    |   |   |   |   |   |
| Stock-based compensation expense related to nonvested stock |   | $                             | 232,000 |   |   |   |   |   |
|                                                        |   |                          |    |   |   |   |   |   |

| NOTE 8 - | EMPLOYEE BENEFIT PLANS |
|---------------|------------------------|

|                                      |   | 12 Weeks Ended |   |   | 12 Weeks Ended               |   |
|-------------------------------------------|--------|----------------|--------|--------|------------------------------|--------|
| in thousands                              |   | Pension Plan   |   |   | Supplemental Retirement Plan |   |
|                                      |   | April 30, 2011 |   |   | May 1, 2010                  |   |   | April 30, 2011 |   |   | May 1, 2010 |   |
| Components of net periodic benefit costs: |   |           |   |   |                         |   |   |   |   |   |   |   |
| Service cost                              |   | $              | -      |   |                         | $      | - |   |   | $ | - |   |   | $ | - |   |
| Interest cost                             |   |           | 711    |   |                         |   | 715 |   |   |   | 18 |   |   |   | 18 |   |
| Expected return on plan assets            |   |           | (738   | )      |                         |   | (715 | ) |   |   | - |   |   |   | - |   |
| Amortization of prior service cost        |   |           | -      |   |                         |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of net loss (gain)           |   |           | 386    |   |                         |   | 282 |   |   |   | (12 | ) |   |   | (18 | ) |
|                                      |   |           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost                 |   | $              | 359    |   |                         | $      | 282 |   |   | $ | 6 |   |   | $ | - |   |
|                                      |   |           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

| NOTE 9  - | INCOME TAXES |
|---------------------|--------------|

| ·   | The Company had a balance of liability for uncertain tax positions of approximately $2.2 million at both April 30, 2011, and February 5, 2011, respectively.  Within the next 12 months, the Company anticipates the recognition of substantially all remaining uncertain tax benefits due to additional statute closure.  Recognition of these uncertain tax benefits would favorably affect the tax rate. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense.  During the 12 weeks ended April 30, 2011, the Company recognized a credit of $17,000 related to interest and penalties due to the true-up in calculation of expense.  As of April 30, 2011, and February 5, 2011, the Company had approximately $29,000 and $46,000, respectively, accrued for the payment of interest and penalties. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, many states, and Mexican and Canadian jurisdictions.  The Company is generally no longer subject to U.S. federal income tax examination for the years prior to 2006.  The Company is currently under examination by the IRS for the 2008 tax year.  There are currently no ongoing examinations by state or foreign taxing authorities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 10   - | COMMITMENTS AND CONTINGENCIES |
|----------------------------|-------------------------------|

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

|                                             |   | April 30, 2011 |   |   | May 1, 2010 |   |
|--------------------------------------------------|--------|----------------|--------|--------|-------------|--------|
| Within Walmart stores:                           |   |           |   |   |        |   |
| United States and Puerto Rico                    |   |           | 1,535  |   |        |   | 1,534 |   |
| Canada                                           |   |           | 259    |   |        |   | 260 |   |
| Mexico                                           |   |           | 108    |   |        |   | 103 |   |
|                                             |   |           |   |   |        |   |   |   |
| Within Sears stores:                             |   |           |   |   |        |   |   |   |
| United States and Puerto Rico                    |   |           | 854    |   |        |   | 865 |   |
| Canada                                           |   |           | 110    |   |        |   | 110 |   |
|                                             |   |           |   |   |        |   |   |   |
| Within Babies "R" Us stores in the United States |   |           | 150    |   |        |   | 2 |   |
|                                             |   |           |   |   |        |   |   |   |
| Locations not within above host stores           |   |           | 52     |   |        |   | 33 |   |
|                                             |   |           |   |   |        |   |   |   |
| Total                                            |   |           | 3,068  |   |        |   | 2,907 |   |
|                                             |   |           |   |   |        |   |   |   |

| in thousands, except share and per share data                                      |   | 12 Weeks Ended |      |
|------------------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                               |   | April 30, 2011 |      |   | May 1, 2010 |   |
|                                                                               |   | (Unaudited)    |      |   | (Unaudited) |   |
|                                                                               |   |           |      |   |   |   |
| Net sales                                                                          |   | $              | 88,638    |   |   | $ | 95,498 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Cost and expenses:                                                                 |   |           |      |   |   |   |   |   |
| Cost of sales (exclusive of depreciation and amortization shown below)             |   |           | 6,189     |   |   |   | 6,522 |   |
| Selling, general and administrative expenses                                       |   |           | 73,770    |   |   |   | 73,821 |   |
| Depreciation and amortization                                                      |   |           | 4,016     |   |   |   | 4,465 |   |
| Other charges and impairments                                                      |   |           | 3,177     |   |   |   | 296 |   |
|                                                                               |   |           | 87,152    |   |   |   | 85,104 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Income from operations                                                             |   |           | 1,486     |   |   |   | 10,394 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Interest expense                                                                   |   |           | 668       |   |   |   | 1,321 |   |
| Interest income                                                                    |   |           | 43        |   |   |   | 68 |   |
| Other income, net                                                                  |   |           | 106       |   |   |   | 710 |   |
| Income from operations before income tax expense                                   |   |           | 967       |   |   |   | 9,851 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Income tax expense                                                                 |   |           | 305       |   |   |   | 3,311 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Net income                                                                         |   |           | 662       |   |   |   | 6,540 |   |
| Net loss attributable to noncontrolling interest                                   |   |           | (85       | ) |   |   | - |   |
|                                                                               |   |           |      |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO CPI CORP.                                               |   | $              | 747       |   |   | $ | 6,540 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| NET INCOME PER COMMON SHARE                                                        |   |           |      |   |   |   |   |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Net income per common share attributable to CPI Corp. - diluted                    |   | $              | 0.11      |   |   | $ | 0.91 |   |
|                                                                               |   |           |      |   |   |   |   |   |
| Weighted average number of common and common equivalent shares outstanding-diluted |   |           | 6,998,340 |   |   |   | 7,176,477 |   |
|                                                                               |   |           |      |   |   |   |   |   |

| ●   | Net sales for the first quarter of fiscal 2011 decreased $6.9 million, or 7%, to $88.6 million from the $95.5 million reported in the fiscal 2010 first quarter.  Net sales for the 2011 first quarter were negatively impacted by approximately $2.7 million as a result of the later Easter holiday in the current year and positively impacted by net store openings ($5.2 million), foreign currency translation ($700,000), Bella Pictures® sales ($907,000) and other items ($300,000).  Excluding the above impacts, comparable same-store sales decreased approximately 12%. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Cost of sales, excluding depreciation and amortization expense, declined to $6.2 million in the first quarter of 2011, from $6.5 million in the first quarter of 2010 primarily due to lower overall production levels; offset in part by incremental costs associated with the Kiddie Kandids and Bella Pictures® operations which were not incurred in the prior-year period. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Selling, general and administrative (SG&A) expense remained approximately flat at $73.8 million in both the first quarters of 2011 and 2010, as the benefits of reduced studio employment, advertising costs and host store commissions were offset by costs incurred in connection with the newly added Kiddie Kandids and Bella Pictures® operations which increased SG&A expense by $4.4 million and $2.1 million, respectively, in the 2011 first quarter. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Depreciation and amortization expense was $4.0 million in the first quarter of 2011, compared with $4.5 million in the first quarter of 2010.  Depreciation expense decreased as a result of the full depreciation of certain digital assets throughout fiscal 2010. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | In the first quarter of 2011, the Company recognized $3.2 million in other charges and impairments, compared with $296,000 in the first quarter of 2010.  The current-quarter charges primarily related to certain litigation costs, severance and costs incurred in connection with the Bella Pictures® Acquisition.  The prior-year charges primarily related to lab closures and costs incurred in connection with the Kiddie Kandids asset acquisition. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| in thousands                            |   | 12 Weeks Ended |   |
|-----------------------------------------|--------|----------------|--------|
|                                    |   | April 30, 2011 |   |   | May 1, 2010 |   |
|                                    |   | (Unaudited)    |   |   | (Unaudited) |   |
| Net cash provided by (used in):         |   |           |   |   |   |   |
| Operating activities                    |   | $              | 2,158  |   |   | $ | 11,854 |   |
| Financing activities                    |   |           | 694    |   |   |   | (11,975 | ) |
| Investing activities                    |   |           | (2,040 | ) |   |   | (4,693 | ) |
| Effect of exchange rate changes on cash |   |           | (44    | ) |   |   | (425 | ) |
| Net increase (decrease) in cash         |   | $              | 768    |   |   | $ | (5,239 | ) |
|                                    |   |           |   |   |   |   |   |   |

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

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

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

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

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

SIGNATURES

EXHIBIT

| EXHIBIT |   |                                                                                                                   |
|---------|--------|------------------------------------------------------------------------------------------------------------------------|
| NUMBER  |   | DESCRIPTION                                                                                                            |
|    |   |                                                                                                                   |
| 11.1    |   | Computation of Per Common Share Income - Diluted - for the 12 weeks ended April 30, 2011, and May 1, 2010.             |
|    |   |                                                                                                                   |
| 11.2    |   | Computation of Per Common Share Income - Basic - for the 12 weeks ended April 30, 2011, and May 1, 2010.               |
|    |   |                                                                                                                   |
| 31.1    |   | Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 by the Chief Executive Officer.     |
|    |   |                                                                                                                   |
| 31.2    |   | Certification Pursuant to Rule 13a-14(a) under the Securities 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.                                                        |