Exhibit 99.1

FOR IMMEDIATE RELEASE:

Ann Taylor Announces July 2007 Sales Results

Company Reaffirms Earnings Outlook for Full Year

New York, New York, August 9, 2007 – AnnTaylor Stores Corporation (NYSE: ANN) today announced its sales results for the month of July 2007.

For the four-week period ended August 4, 2007, net sales increased 2.8% to $161.0 million, compared with net sales of $156.7 million for the four-week period ended July 29, 2006. By division, net sales for Ann Taylor decreased 2.7% to $57.1 million in July 2007, compared with net sales of $58.7 million in July 2006. For Ann Taylor LOFT, net sales increased 0.3% to $80.4 million in July 2007, compared with net sales of $80.2 million in July 2006.

Comparable store sales for the July 2007 period decreased 5.0%, versus a comparable store sales gain of 5.1% in the July 2006 period. By division, comparable store sales for Ann Taylor declined 2.5% in the 2007 period, compared with an increase of 1.4% the prior year. For Ann Taylor LOFT, comparable store sales declined 9.3% in July 2007, compared with an increase of 8.3% the prior year.

Commenting on the Company’s sales results, Ann Taylor President & Chief Executive Officer Kay Krill stated, “Our results in July were impacted by traffic softness, a highly promotional retail environment, and some remaining product issues at LOFT. We have been very aggressive promotionally to keep our inventories turning, and we believe we are heading into the third quarter in a good position overall. At Ann Taylor, our results for the month reflected some softness from the July store-set, which was too neutral in color but which sold well on initial mark-down. At LOFT, we have effectively managed the business through a tough first half, and we are heading into Fall in a healthy inventory position and with a product assortment that we believe reflects the appropriate balance of color, updated classics and fashion.”

Commenting on the Company’s outlook, Ms. Krill continued, “We are aggressively managing the business through this period of macro-economic softness and, while we continue to believe that we are positioned for a good Fall season, we are prudently planning our business for an uncertain second half. In this context, we continue to believe we will achieve EPS for the year in the range of $2.15 to $2.25.”

About Ann Taylor

Ann Taylor is one of the country’s leading women’s specialty retailers, operating 878 stores in 46 states, the District of Columbia and Puerto Rico, and Online Stores at www.anntaylor.com and www.anntaylorLOFT.com as of May 5, 2007.

Contact:

Judith A. Pirro

Director, Investor Relations

Ann Taylor Stores Corporation

212-541-3598

ANNTAYLOR

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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 predict accurately client fashion preferences;

• competitive influences and decline in the demand for merchandise offered by the Company;

• the Company’s ability to successfully execute brand extensions and new concepts;

• effectiveness of the Company’s brand awareness and marketing programs;

• the Company’s ability to secure and protect trademarks and other intellectual property rights in the United States and/or foreign countries;

• general economic conditions, including the impact of higher fuel and energy prices, interest rates, a downturn in the retail industry or changes in levels of store traffic;

• fluctuation in the Company’s level of sales and earnings growth;

• the Company’s ability to locate new store sites or negotiate favorable lease terms for additional stores or for the lease renewal or expansion of existing stores;

• risks associated with the performance and operations of the Company’s Internet operations;

• a significant change in the regulatory environment applicable to the Company’s business;

• risks associated with the possible inability of the Company, particularly through its sourcing and logistics functions, to operate within production and delivery constraints and the Company’s dependence on a single distribution facility;

• the uncertainties of sourcing associated with the current quota environment, including changes in sourcing patterns resulting from the elimination of quota on apparel products and the re-imposition of quotas in certain categories, and other possible trade law or import restrictions;

• financial or political instability in any of the countries in which the Company’s goods are manufactured;

• risks associated with a failure by independent manufacturers to comply with the Company’s labor practices requirements;

• the potential impact of natural disasters and public health concerns, particularly on the Company’s foreign sourcing offices and manufacturing operations of the Company’s vendors;

• acts of war or terrorism in the United States or worldwide;

• work stoppages, slowdowns or strikes;

• the Company’s ability to hire, retain and train key personnel;

• the Company’s ability to successfully upgrade and maintain its information systems, including adequate system security controls; and

• the Company’s ability to continue operations in accordance with its business continuity plan in the event of an interruption.

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.