Ann (ANN) 8-K ANN INC. Reports Record Second Quarter 2012 EPS of $0.63, an

Exhibit 99.1

FOR IMMEDIATE RELEASE

ANN INC. Reports Record Second Quarter 2012 EPS of $0.63, an

Increase of 34% Over Second Quarter 2011

—Strong Performance Driven By Increased Sales and Record Gross Margin Rate —

—Company Delivers Positive Comp Performance in all Channels of the Ann Taylor and LOFT Brands —

—Operating Income Increases 27% —

—Company Raises Outlook for Fiscal 2012 —

New York, NY, August 17, 2012 – ANN INC. (NYSE: ANN) today reported results for the fiscal second quarter of 2012, ended July 28, 2012. The Company also provided its outlook for the third quarter and raised its outlook for the full year of fiscal 2012.

For the fiscal second quarter of 2012, the Company reported earnings per diluted share of $0.63, an increase of 34 percent compared with earnings per diluted share of $0.47 in the second quarter of 2011.

Kay Krill, President and Chief Executive Officer, commented, “We are extremely pleased with ANN INC.’s record earnings per share of $0.63 this quarter, up 34% over last year. Our outstanding results were driven by a seven percent increase in sales, including a comparable sales increase of five percent, a record gross margin rate of 56 percent and a 27 percent increase in operating income.

“At the Ann Taylor brand, performance accelerated significantly from the first quarter, reflecting stronger sales and profitability, including positive comps in the Ann Taylor stores channel and continued profitable growth in the e-commerce and factory outlet channels. LOFT also delivered excellent sales and profitability results, including strong margin and continued solid comp growth on top of last year’s double-digit increase. Clearly, our performance at both brands demonstrated strong product acceptance driven by the successful delivery of compelling fashion, excellent quality, outstanding value and an engaging shopping experience, in store and online.”

Fiscal 2012 Second Quarter Results

Total net sales for the second quarter of fiscal 2012 were $594.9 million, compared with net sales of $558.2 million in the second quarter of fiscal 2011. By brand, net sales across all channels of the Ann Taylor brand totaled $233.3 million in the second quarter of 2012, compared with net sales of $217.9 million in the second quarter of 2011. At the LOFT brand, net sales across all channels totaled $361.6 million in the second quarter of 2012, compared with net sales of $340.3 million in the second quarter of 2011.

Total Company comparable sales for the quarter increased 4.7% versus the second quarter of 2011. At Ann Taylor, total brand comparable sales increased 5.6%, reflecting increases of 3.2% at Ann Taylor stores, 29.0% in the Ann Taylor e-commerce channel and 2.1% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales were up 4.2%, reflecting increases of 4.1% at LOFT stores, 14.6% in the LOFT e-commerce channel and 0.3% 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, reached a record 55.9%, compared with the 55.0% gross margin rate achieved in the second quarter of 2011. The outstanding gross margin performance in the second quarter of 2012 reflected strong client response to our product and lower promotional activity versus the second quarter of 2011 at both brands.

Selling, general and administrative expenses for the second quarter of 2012 were $279.5 million versus $265.1 million reported in the second quarter of 2011. As a percentage of net sales, selling, general and administrative expenses improved to 47.0% compared to the second quarter 2011 rate of 47.5%. The improved SG&A rate during the second quarter of 2012 primarily reflected fixed cost leveraging resulting from higher net sales, partially offset by expenses associated with our year-over-year store growth and other expenses supporting the expansion of the business.

The Company reported operating income of $52.9 million in the second quarter of 2012, an increase of 27% compared with operating income of $41.7 million in the second quarter of 2011. Net income was $30.7 million in the second quarter of 2012, an increase of 24% versus the $24.8 million reported in the second quarter of 2011. Diluted earnings per share was $0.63, an increase of 34% compared to the $0.47 per diluted share reported in the second quarter of 2011.

The Company ended the quarter with approximately $133 million in cash and cash equivalents, following the repurchase of approximately 1.6 million shares of its stock at a cost of approximately $40 million during the fiscal second quarter of 2012.

Total inventory per square foot, excluding e-commerce, at the end of the fiscal second quarter of 2012 increased 2%, reflecting an 11% increase at Ann Taylor stores, a 2% increase at LOFT stores and a 9% decrease in the factory outlet channel. The increase at Ann Taylor stores reflects earlier receipt of goods in-transit versus last year, without which, inventory per square foot at Ann Taylor stores would have increased by approximately 3%.

During the second quarter of fiscal 2012, the Company opened 17 stores, comprised of three Ann Taylor stores, one Ann Taylor Factory store, seven LOFT stores and six LOFT Outlet stores, and closed two LOFT stores. The total store count at the end of the fiscal second quarter was 962, comprised of 277 Ann Taylor stores, 100 Ann Taylor Factory stores, 505 LOFT stores, and 80 LOFT Outlet stores.

First Half Fiscal 2012 Results

Net sales for the first six months of fiscal 2012 were $1,155.3 million, compared with net sales of $1,081.8 million in the first half of fiscal 2011. By brand, net sales across all channels of the Ann Taylor brand were $445.7 million in the first half of 2012, compared with net sales of $440.8 million in the first half of 2011. At the LOFT brand, net sales across all channels were $709.6 million in the first half of 2012, compared with net sales of $641.1 million in the first half of 2011.

Total Company comparable sales for the first half of 2012 increased 4.3%, on top of an increase of 8.2% in the comparable period of 2011. At Ann Taylor, total brand comparable sales decreased 0.8%, including a decrease of 6.6% at Ann Taylor stores, partially offset by increases of 18.0% in the Ann Taylor e-commerce channel and 1.5% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales increased by 7.5%, including increases of 6.9% at LOFT stores, 22.4% in the LOFT e-commerce channel and 2.5% 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 56.2% in the first half of 2012, compared with 56.1% in the first half of 2011.

Selling, general and administrative expenses for the first half of 2012 were $551.5 million, versus $519.2 million in the first half of 2011. As a percentage of net sales, selling, general and administrative expenses improved 30 basis points versus the prior year to 47.7%. The improvement in the SG&A rate primarily reflected fixed cost leveraging resulting from higher net sales, partially offset by expenses associated with our year-over-year store growth and other expenses supporting the expansion of the business.

The Company reported operating income of $98.3 million in the first half of 2012, an increase of 12% compared with operating income of $87.6 million in the first half of 2011. Net income was $59.5 million in the first half of 2012, an increase of 14% versus the $52.1 million reported in the first half of 2011. Diluted earnings per share in the first half of 2012 was $1.21 per diluted share, an increase of 25% over the $0.97 per diluted share reported in the first half of 2011.

Outlook for Fiscal Third-Quarter and Full-Year 2012

For the fiscal third quarter of 2012, the Company expects total net sales to be $600 million, reflecting a total Company comparable sales increase in the mid-single digits. Gross margin rate performance is expected to approach 58.0%. Selling, general and administrative expenses are estimated to approach $290 million.

In terms of the full year, the Company has increased its outlook, as follows:

• Total net sales for fiscal 2012 are expected to approach $2.385 billion, reflecting a total Company comparable sales increase in the mid-single digits.

• Gross margin rate performance is expected to be approximately 55%.

• Total SG&A expenses are expected to approach $1.140 billion.

• The Company’s effective annual tax rate is expected to be approximately 40%.

• Capital expenditures are expected to be approximately $160 million.

• Total weighted average square footage for fiscal 2012 is expected to increase slightly, reflecting the opening of approximately 65 new stores, partially offset by the impact of downsizes at Ann Taylor stores and approximately 30 store closures. The Company expects to have approximately 985 stores at fiscal year-end.

• The Company expects to maintain its healthy balance sheet, including a disciplined approach to inventory management throughout the fiscal year.

About ANN INC.

ANN INC. is the parent Company of Ann Taylor and LOFT, two of the leading women’s specialty retail fashion brands in the United States. The Company operates 962 Ann Taylor, Ann Taylor Factory, LOFT and LOFT Outlet stores in 46 states, the District of Columbia and Puerto Rico as of July 28, 2012, as well as online at AnnTaylor.com and LOFT.com. Visit ANNINC.com for more information (NYSE: ANN).

Investor Contact:	Press Contact:
Judith Lord	Catherine Fisher
Vice President, Investor Relations	Vice President, Corporate Communications
ANN INC.	ANN INC.
212-541-3300 ext. 3598	212-541-3300 ext. 2199

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:

• the Company’s ability to anticipate and respond to changing client preferences and fashion trends and provide a balanced assortment of merchandise that satisfies client demands in a timely manner;

• the effectiveness of the Company’s brand awareness and marketing programs, and its ability to maintain the value of its brands;

• the Company’s ability to manage inventory levels and changes in merchandise mix;

• the Company’s ability to successfully implement its business transformation initiatives and upgrade and maintain its information systems, including adequate system security controls, successful transitioning of certain information technology functions to third parties and the ability to operate in accordance with its business continuity plan in the event of a disruption;

• the Company’s reliance on key management and its ability to hire, retain and train qualified associates;

• the performance and operation of the Company’s websites and the risks associated with Internet sales;

• the Company’s ability to successfully execute brand goals, objectives and new concepts;

• the impact of fluctuations in sourcing costs, in particular increases in the costs of raw materials, labor, fuel and transportation;

• the depressed levels of consumer spending and consumer confidence resulting from the worldwide economic downturn and financial crisis;

• the Company’s ability to secure and protect trademarks and other intellectual property rights;

• the Company’s reliance on foreign sources of production and the associated risks of doing business in foreign markets, including fluctuations in the value of the U.S. dollar against foreign currencies, the imposition of duties or other possible trade law or import restrictions, including legislation relating to import quotas, and financial or political instability in any of the countries in which the Company’s merchandise is manufactured;

• the Company’s reliance on third-party manufacturers and key vendors, including operational risks such as reduced production capacity, errors in complying with merchandise specifications, insufficient quality control and failure to meet production deadlines;

• the Company’s ability to successfully manage store growth and optimize the productivity and profitability of its store portfolio;

• the impact of a privacy breach and the resulting effect on the Company’s business and reputation;

• a significant change in the regulatory environment applicable to the Company’s business and the Company’s ability to comply with legal and regulatory requirements;

• the failure by independent manufacturers to comply with the Company’s social compliance program requirements;

• the effect of competitive pressures from other retailers;

• the effect of continued uncertainty in the global economy on the Company’s liquidity and capital resources;

• the Company’s dependence on its Louisville distribution center and third-party distribution facilities and transportation companies, including any significant interruptions due to work stoppages, slowdowns or strikes by employees of the third-party vendors that it utilizes;

• the impact on the Company’s stock price relating to the Company’s level of sales and earnings growth;

• acts of war or terrorism in the United States or worldwide, and the potential impact of natural disasters and public health concerns, including severe infectious diseases, particularly on the Company’s foreign sourcing offices and the manufacturing operations of the Company’s vendors;

• the Company’s dependence on shopping malls and other retail centers to attract customers;

• the impact of potential consolidation of commercial and retail landlords on the Company’s ability to negotiate favorable rental terms;

• the effect of external economic factors on the Company’s future funding obligations for its defined benefit pension plan; and

• the impact of climate change on the Company’s business.

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.

ANN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Quarters and Six Months Ended July 28, 2012 and July 30, 2011

(unaudited)

Table 1.

	Quarter Ended				Six Months Ended
	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
	(in thousands, except per share amounts)
Net sales	$	594,872	$	558,201	$	1,155,283	$	1,081,829
Cost of sales		262,471		251,400		505,511		475,076
Gross margin		332,401		306,801		649,772		606,753
Selling, general and administrative expenses		279,456		265,125		551,474		519,158
Operating income		52,945		41,676		98,298		87,595
Interest income		101		98		656		333
Interest expense		485		531		820		811
Income before income taxes		52,561		41,243		98,134		87,117
Income tax provision		21,826		16,451		38,667		35,011
Net income	$	30,735	$	24,792	$	59,467	$	52,106
Earnings per share:
Basic earnings per share	$	0.64	$	0.48	$	1.23	$	0.99
Weighted average shares outstanding		47,571		51,277		47,747		51,679
Diluted earnings per share	$	0.63	$	0.47	$	1.21	$	0.97
Weighted average shares outstanding, assuming dilution		48,118		52,161		48,398		52,625

ANN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

July 28, 2012, January 28, 2012 and July 30, 2011

(unaudited)

Table 2.

	July 28, 2012			January 28, 2012			July 30, 2011
	(in thousands, except share amounts)
Assets
Current assets
Cash and cash equivalents	$	132,663		$	150,208		$	145,178
Accounts receivable		28,074			19,591			29,468
Merchandise inventories		221,634			213,447			213,686
Refundable income taxes		7,765			11,965			26,457
Deferred income taxes		32,122			30,999			25,845
Prepaid expenses and other current assets		65,816			49,107			64,513
Total current assets		488,074			475,317			505,147
Property and equipment, net		374,803			360,890			359,355
Deferred income taxes		29,361			39,134			27,514
Other assets		13,350			12,340			12,348
Total assets	$	905,588		$	887,681		$	904,364
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	97,725		$	94,157		$	97,501
Accrued salaries and bonus		31,080			16,122			22,094
Current portion of long-term performance compensation		29,750			19,373			17,835
Accrued tenancy		45,258			41,435			43,055
Gift certificates and merchandise credits redeemable		41,518			50,750			38,043
Accrued expenses and other current liabilities		81,293			64,060			70,458
Total current liabilities		326,624			285,897			288,986
Deferred lease costs		158,450			159,435			166,300
Deferred income taxes		1,250			1,320			1,040
Long-term performance compensation, less current portion		20,634			42,122			31,222
Other liabilities		30,455			35,030			22,893
Commitments and contingencies
Stockholders’ equity
Common stock, $.0068 par value; 200,000,000 shares authorized; 82,563,516 shares issued		561			561			561
Additional paid-in capital		811,382			811,707			798,992
Retained earnings		633,724			574,257			539,797
Accumulated other comprehensive loss		(5,123	)		(5,318	)		(2,301	)
Treasury stock, 35,239,186, 33,284,631 and 30,324,921 shares, respectively, at cost		(1,072,369	)		(1,017,330	)		(943,126	)
Total stockholders’ equity		368,175			363,877			393,923
Total liabilities and stockholders’ equity	$	905,588		$	887,681		$	904,364

ANN INC.

Brand Sales and Store Data

For the Quarters and Six Months Ended July 28, 2012 and July 30, 2011

(unaudited)

Table 3.

Sales and Comps

	Quarter Ended
	July 28, 2012					July 30, 2011
	Sales		Comp % (1)			Sales		Comp % (1)
	($ in thousands)
Ann Taylor brand
Ann Taylor Stores	$	122,593		3.2	%	$	117,297		0.6	%
Ann Taylor e-commerce		29,096		29.0	%		22,597		32.0	%
Subtotal		151,689		7.8	%		139,894		4.7	%
Ann Taylor Factory		81,586		2.1	%		78,003		6.5	%
Total Ann Taylor brand	$	233,275		5.6	%	$	217,897		5.3	%
LOFT brand
LOFT Stores	$	272,989		4.1	%	$	260,475		8.6	%
LOFT e-commerce		27,500		14.6	%		23,867		33.5	%
Subtotal		300,489		5.0	%		284,342		10.3	%
LOFT Outlet		61,108		0.3	%		55,962		23.7	%
Total LOFT brand	$	361,597		4.2	%	$	340,304		11.0	%
Total Company	$	594,872		4.7	%	$	558,201		8.6	%
Sales and Comps
	Six Months Ended
	July 28, 2012					July 30, 2011
	Sales		Comp % (1)			Sales		Comp % (1)
	($ in thousands)
Ann Taylor brand
Ann Taylor Stores	$	232,190		(6.6	)%	$	242,676		7.0	%
Ann Taylor e-commerce		61,710		18.0	%		52,058		38.1	%
Subtotal		293,900		(1.9	)%		294,734		11.5	%
Ann Taylor Factory		151,751		1.5	%		146,038		7.8	%
Total Ann Taylor brand	$	445,651		(0.8	)%	$	440,772		10.2	%
LOFT brand
LOFT Stores	$	535,377		6.9	%	$	499,574		3.8	%
LOFT e-commerce		63,986		22.4	%		52,160		33.1	%
Subtotal		599,363		8.4	%		551,734		6.0	%
LOFT Outlet		110,269		2.5	%		89,323		20.0	%
Total LOFT brand	$	709,632		7.5	%	$	641,057		6.7	%
Total Company	$	1,155,283		4.3	%	$	1,081,829		8.2	%

Table 3. (Continued)

Stores and Square Footage

	Quarter Ended
	July 28, 2012						July 30, 2011
	Stores			Square Feet			Stores			Square Feet
	(square feet in thousands)
Ann Taylor brand
Ann Taylor Stores		277			1,419			272			1,446
Ann Taylor Factory		100			691			97			691
Total Ann Taylor brand		377			2,110			369			2,137
LOFT brand
LOFT Stores		505			2,929			501			2,920
LOFT Outlet		80			555			72			506
Total LOFT brand		585			3,484			573			3,426
Total Company		962			5,594			942			5,563
Number Of:
Stores open at beginning of period		947			5,524			923			5,494
New stores		17			97			24			132
Downsized/expanded stores (2)		—			(16	)		—			(36	)
Closed stores		(2	)		(11	)		(5	)		(27	)
Stores open at end of period		962			5,594			942			5,563

Stores and Square Footage

	Six Months Ended
	July 28, 2012						July 30, 2011
	Stores			Square Feet			Stores			Square Feet
	(square feet in thousands)
Number Of:
Stores open at beginning of period		953			5,584			896			5,284
New stores		24			133			56			376
Downsized/expanded stores (3)		—			(41	)		—			(40	)
Closed stores		(15	)		(82	)		(10	)		(57	)
Stores open at end of period		962			5,594			942			5,563

(1) A store is included in comparable sales in its thirteenth month of operation. A store with a square footage change of greater than 15% is treated as a new store for the first year following its reopening.

(2) During the quarter ended July 28, 2012, the Company downsized six Ann Taylor stores and one Ann Taylor Factory store and expanded one Ann Taylor store. During the quarter ended July 30, 2011, the Company downsized six Ann Taylor stores and two Ann Taylor Factory stores.

(3) During the six months ended July 28, 2012, the Company downsized nine Ann Taylor stores, four Ann Taylor Factory stores, one LOFT store and one LOFT Outlet store and expanded one Ann Taylor store. During the six months ended July 30, 2011, the Company downsized seven Ann Taylor stores and two Ann Taylor Factory stores.