Exhibit 99.1

FOR IMMEDIATE RELEASE

Ann Taylor Reports Substantially Higher Sales and Earnings for Fourth

Quarter and Fiscal 2010

—Company Provides Outlook for Significant Sales and Profit Growth in First Quarter and Full Year 2011—

— Board Approves Expansion of Share Repurchase Authorization by Additional $200 Million—

—Company To Change Corporate Name to ANN INC. —-

New York, NY, March 11, 2011 – AnnTaylor Stores Corporation (NYSE: ANN) today reported results for the fiscal fourth quarter and full year of 2010, ended January 29, 2011, and provided an outlook for the first quarter and full year of fiscal 2011.

For the fiscal fourth quarter of 2010, the Company reported earnings per diluted share of $0.19, excluding after-tax restructuring charges of $0.05 per diluted share, compared with earnings per diluted share of $0.05 in the fourth quarter of 2009, excluding after-tax restructuring charges totaling $0.05 per diluted share. On a GAAP basis, including the aforementioned restructuring charges, earnings per diluted share were $0.14 in the fourth quarter of 2010, compared with breakeven earnings per diluted share in the fourth quarter of 2009.

For the full year of fiscal 2010, the Company reported earnings per diluted share of $1.30, excluding after-tax restructuring charges of $0.06 per diluted share, compared with earnings per diluted share of $0.32 in the full year of fiscal 2009, excluding after-tax restructuring and asset impairment charges totaling $0.64 per diluted share. On a GAAP basis, including the aforementioned restructuring and asset impairment charges, earnings per diluted share were $1.24 in fiscal 2010, compared with a net loss per diluted share of $0.32 in fiscal 2009.

Kay Krill, President and CEO, commented, “Our strong performance in the fourth quarter capped off an excellent year for our Company. For both the quarter and the fiscal year, we achieved substantial increases in sales and profitability, while positioning both the Ann Taylor and LOFT brands for continued growth. We delivered an 11 percent comparable sales increase for the quarter, with both brands achieving positive comparable sales performance. In fact, the Company achieved positive comparable sales in every quarter of fiscal 2010. For the quarter, diluted EPS before charges was up almost fourfold from the prior year’s fourth quarter and, for the full year, diluted EPS before charges increased by nearly $1.00 per share from the $0.32 reported in fiscal 2009.

“We have also delivered on our commitment to further enhance shareholder value through the repurchase of 4.2 million shares at a total cost of $100 million in 2010 and, during the first quarter of 2011, we have repurchased an additional 4.2 million shares at a cost of $100 million. I am also pleased that our Board has voted to expand our share repurchase program by an additional $200 million, giving us nearly $260 million available for repurchase under the authorization.”

“As we look to fiscal 2011, we are excited about the potential to build on our momentum. Our talented and experienced team is moving forward strategically to capitalize on the opportunities across our multiple channels, with a focus on delivering continued sales and profit growth while maintaining our exceptionally strong balance sheet.

“Finally, I am pleased to announce today that, in order to better reflect the multi-channel focus we have on our business, we have decided to change our corporate name from Ann Taylor Stores Corporation to ANN INC. Today, our Company is far more than a traditional ‘store-based’ retailer. We have two distinct brands – Ann Taylor and LOFT – each of which operates across three channels and enables us to reach our client whether she is making her purchases at our stores, online or at our factory outlet locations.” stated Ms. Krill.

Fiscal 2010 Fourth Quarter Results

Total net sales for the fourth quarter of fiscal 2010 were $515.3 million, compared with net sales of $469.1 million in the fourth quarter of fiscal 2009. By brand, net sales across all channels of the Ann Taylor brand totaled $234.9 million in the fourth quarter of 2010, compared with net sales of $206.2 million in the fourth quarter of 2009. At the LOFT brand, net sales across all channels were $280.4 million in the fourth quarter of 2010, compared with net sales of $263.0 million in the fourth quarter of 2009.

Total Company comparable sales for the quarter increased 11.0% versus the fourth quarter of 2009. At Ann Taylor, total brand comparable sales increased 20.9%, reflecting increases of 19.1% at Ann Taylor stores, 74.3% in the Ann Taylor e-commerce channel and 9.2% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales were up 3.5%, reflecting a decrease of 3.2% at LOFT stores, which was more than offset by increases of 77.2% in the LOFT e-commerce channel and 26.9% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)

Gross margin, as a percentage of net sales, was 51.7%, versus the 52.5% gross margin rate achieved in the fourth quarter of 2009. This solid gross margin performance reflected strong product performance at the Ann Taylor brand and conservative inventory positions at both brands, offset by a higher level of promotional activity at the LOFT brand during the quarter compared with the fourth quarter of 2009.

Selling, general and administrative expenses for the fourth quarter of 2010 were $252.0 million versus $241.6 million reported in the fourth quarter of 2009. As a percentage of net sales, selling, general and administrative expenses declined 260 basis points versus the prior year to 48.9%. This decline in expenses as a percentage of net sales reflected substantially higher

net sales, restructuring program savings, and continued aggressive management of expenses, partially offset by higher marketing investment and performance-based compensation costs as well as an increase in variable costs related to higher sales versus the 2009 period.

During the quarter, the Company recorded pre-tax restructuring charges of $3.9 million associated with its previously announced strategic restructuring program, compared with $3.6 million in the fourth quarter of 2009. On an after-tax basis, fourth quarter 2010 restructuring charges totaled $3.0 million, or $0.05 per diluted share, compared with $2.5 million, or $0.05 per diluted share, in the fourth quarter of 2009.

Excluding the aforementioned charges, the Company reported operating income of $14.3 million for the quarter, compared with operating income of $4.9 million in the fourth quarter of 2009. On the same basis, the Company reported net income in the quarter of $11.0 million, or $0.19 per diluted share, compared with net income of $2.5 million, or $0.05 per diluted share in the fourth quarter of 2009. On a GAAP basis, the Company reported operating income of $10.3 million in the fourth quarter of 2010, compared with operating income of $1.2 million in the fourth quarter of 2009. On the same basis, the Company reported net income of $8.0 million, or $0.14 per diluted share in the fourth quarter of 2010, compared with net income and diluted earnings per share that were approximately breakeven in the fourth quarter of 2009.

During the fourth quarter of 2010, the Company opened eight new stores, comprised of five LOFT stores and three LOFT Outlet stores, and closed 10 Ann Taylor stores and nine LOFT stores.

Fiscal Year 2010 Results

Total net sales for the full year of fiscal 2010 were nearly $2 billion, compared with net sales of $1.8 billion in the full year of fiscal 2009. By brand, net sales across all channels of the Ann Taylor brand totaled $863.7 million in fiscal 2010, compared with net sales of $771.3 million in fiscal 2009. At the LOFT brand, net sales across all channels were $1,116.5 million in 2010, compared with net sales of $1,057.2 million in 2009.

Total Company comparable sales for fiscal 2010 increased 10.7% versus the prior year. At Ann Taylor, total brand comparable sales increased 18.7%, reflecting increases of 19.3% at Ann Taylor stores, 54.3% in the Ann Taylor e-commerce channel and 9.3% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales were up 5.0%, reflecting increases of 0.5% at LOFT stores, 65.3% in the LOFT e-commerce channel and 21.2% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)

Gross margin, as a percentage of net sales, was a record 55.8% in fiscal 2010, an increase of 140 basis points compared to fiscal 2009.

Selling, general and administrative expenses increased to $978.6 million versus $966.6 million in fiscal 2009. As a percentage of net sales, selling, general and administrative expenses declined 350 basis points versus the prior year to 49.4%.

During fiscal 2010, the Company recorded pre-tax restructuring charges of $5.6 million, compared with pre-tax restructuring charges totaling $36.4 million in fiscal 2009. On an after-tax basis, restructuring charges totaled $3.5 million, or $0.06 per diluted share, in fiscal 2010 compared with $25.3 million, or $0.45 per diluted share, in fiscal 2009.

During fiscal 2009, the Company recorded pre-tax non-cash asset impairment charges totaling $15.3 million related to stores not included in the Company’s restructuring program. On an after-tax basis, these fiscal 2009 asset impairment charges totaled $10.7 million, or $0.19 per diluted share. There were no such asset impairment charges in fiscal 2010.

Excluding the aforementioned pre-tax restructuring charges and, for fiscal 2009, the asset impairment charges, operating income for the full year of fiscal 2010 was $125.4 million, compared with operating income of $27.7 million in 2009. On a GAAP basis, the Company reported operating income of $119.8 million in 2010, compared with an operating loss of $24.0 million in 2009.

Net income, excluding the aforementioned after-tax restructuring and, for fiscal 2009, asset impairment charges, totaled $76.9 million, or $1.30 per diluted share, for the full year of fiscal 2010, compared with net income of $17.8 million, or $0.32 per diluted share, in 2009. On a GAAP basis, including the aforementioned charges, net income for 2010 was $73.4 million, or $1.24 per diluted share, compared with a net loss of $18.2 million, or $0.32 per diluted share in 2009.

The Company ended the year with approximately $227 million in cash and cash equivalents.

Total inventory per square foot, excluding e-commerce, at the end of fiscal 2010 increased 14%, in line with our comparable sales performance and reflected incremental inventory to support our plans to open 44 factory outlet stores in the first half of fiscal 2011. Inventory per square foot increased 24% at Ann Taylor stores and 1% at LOFT stores.

During fiscal 2010, the Company opened 24 stores, comprised of 10 LOFT stores and 14 LOFT Outlet stores and closed 35 stores, comprised of 19 Ann Taylor stores and 16 LOFT stores. In addition, the Company converted six Ann Taylor stores to LOFT stores and four LOFT stores to LOFT Outlet stores. The total store count at the end of the fiscal year was 896, comprised of 266 Ann Taylor stores, 502 LOFT stores, 92 Ann Taylor Factory stores and 36 LOFT Outlet stores.

Strategic Restructuring Program

During fiscal 2010, the Company completed its 3-year Strategic Restructuring Program, which was launched in January 2008. The Company achieved its goal under the Program to generate total ongoing annualized savings of approximately $125 million, of which approximately $90 million represents SG&A savings and the remaining $35 million represents gross margin savings.

Total pre-tax expenses associated with our restructuring initiatives were $134.0 million, of which $84.2 million were non-cash expenses, primarily associated with the write-down of assets related to store closures, and $49.8 million were cash charges for severance and various other costs. In fiscal 2010, the Company recorded $5.6 million in pre-tax restructuring charges. In fiscal 2009, fiscal 2008 and fiscal 2007, the Company recorded $36.4 million, $59.7 million and $32.3 million, respectively, in pre-tax restructuring charges.

Under the program, the Company closed 60 stores in fiscal 2008, 42 stores in fiscal 2009, and 35 stores in fiscal 2010, for a total of 137 store closures under the 3-year program. Of these, approximately half were Ann Taylor stores and half were LOFT stores.

Outlook for Fiscal First-Quarter and Full-Year 2011

For the fiscal first quarter of 2011, the Company expects total net sales to approach $510 million, reflecting a total Company comparable sales increase in the mid-to-high single digits. Gross margin rate performance is expected to be approximately 58.5%. Selling, general and administrative expenses are estimated to be approximately $255 million, reflecting support for the Company’s strategic growth initiative to accelerate factory outlet expansion in the first half of fiscal 2011, as well as the first quarter 2011 impact of 18 new LOFT outlet stores opened in the second half of fiscal 2010.

In terms of the full year, the Company provided the following outlook:

About Ann Taylor

Ann Taylor Stores Corporation is one of the leading women’s specialty retailers for fashionable clothing in the United States, operating 896 Ann Taylor, Ann Taylor Factory, LOFT and LOFT Outlet stores in 46 states, the District of Columbia and Puerto Rico as of January 29, 2011, as well as online at AnnTaylor.com and LOFT.com. Visit AnnTaylorStoresCorp.com for more information (NYSE: ANN).

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words “expect”, “anticipate”, “plan”, “intend”, “project”, “may”, “believe” and similar expressions. Forward-looking statements also include representations of the expectations or beliefs of the Company concerning future events that involve risks and uncertainties, including:

Further description of these risks and uncertainties and other important factors are set forth in the Company’s latest Annual Report on Form 10-K, including but not limited to Item 1A – Risk Factors and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations therein, and in the Company’s other filings with the SEC. Although these forward-looking statements reflect the Company’s current expectations concerning future events, actual results may differ materially from current expectations or historical results. The Company does not assume any obligation to publicly update or revise any forward-looking statements at any time for any reason.

ANNTAYLOR STORES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Quarters and Years Ended January 29, 2011 and January 30, 2010

(unaudited)

Table 1.

ANNTAYLOR STORES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

January 29, 2011 and January 30, 2010

(unaudited)

Table 2.

ANNTAYLOR STORES CORPORATION

Brand Sales and Store Data

For the Quarters and Years Ended January 29, 2011 and January 30, 2010

(unaudited)

Table 3.

Table 3. (Continued)