During Ann Taylor's fourth-quarter earnings call this morning,Krill said the company is working on a prototype of a new storelayout, which is intended to make units more cost effective.Further, a new store design will be applied to the Loft units,while 52 Ann Taylor locations will be re-branded throughout theyear. During 2007, the company will update another 50 Ann Taylorlocations.

Calling 2005, "a year of learning," Krill enthusiasticallyreported the company's fourth-quarter earnings. Net income for thefourth quarter ended Jan. 28 was $27.4 million, or 38 cents pershare on a diluted basis on an average of 72.8 million sharesoutstanding. This is compared to a net loss of $12.5 million, or 18cents per share on a diluted basis on an average of 70.7 millionshares outstanding for the same year-ago period.

Total net sales for the fourth quarter were $574 million, up17.8% from $487.4 million last year. By division, net sales were$245.9 million for Ann Taylor, compared to $220.2 million lastyear, and $271.3 million for Ann Taylor Loft compared to $217.2million a year ago.