Towards the end of 1904 Picasso was beginning his transition away from the Blue Period, and Seated Woman In A Chemise offers clear evidence of this.
Emotions begin to become more positive, and colours reflect this. General sadness on the face's of his models starts to make way for his Purple Period which started to take shape a year or so later.
Sexuality begins to creep back into his work, possibly as a result of changes in his own personal life. The "Nightshirt" as it translates into English is worn by Madeleline, his latest in a long line of younger mistresses.
A later aborted child between the two may have brought an element of guilt to Pablo's mind, with a mother and child portrait coming into his career around the same time that the baby would have arrived.