The upscale clothing retailer added seven Ann Taylor stores, 19Ann Taylor LOFT stores and four Ann Taylor Factory stores to itsholdings during the three months ended Oct. 28, increasing thecompany's total square footage by 5.4% to 5 million sf from the 4.7million sf it held in the same period last year.

The firm, which currently operates 856 stores under the AnnTaylor, Ann Taylor LOFT and Ann Taylor Factory banners, saidprofits jumped 29% in the quarter, aided by an increase in thefull-price sale of more suits and dresses along with strong salesat both its brick-and-mortar stores and its online operation.

"We are very pleased with our overall results for the quarter.We achieved significant growth in sales and gross margins, whichcombined drove the best third quarter earnings performance in ourcompany's history," Kay Krill, the company's president and chiefexecutive officer said in a conference call with analysts.