New York & Co sees positive growth in its specialty apparel chain

March 20, 2008 - United States Of America

New York & Company Inc, a specialty apparel chain with 578 retail stores, announced results for the fourth quarter and the full fiscal year ended February 2, 2008. The Company's fiscal year ended February 2, 2008 includes 52 weeks, versus 53 weeks in last year's fiscal year ended February 3, 2007, with the additional week occurring in the final month of the prior fiscal year.

Therefore, the fourth quarter of fiscal year 2006 represents a fourteen-week period and compares to a thirteen-week period in the fourth quarter of fiscal year 2007.

Unless otherwise noted, the results of operations discussed below are for the Company's continuing operations only, the New York & Company brand.

For the fourth quarter of fiscal year 2007, net sales were $359.4 million, as compared to $377.3 million for the fourth quarter of fiscal year 2006. Excluding sales from the extra week in fiscal year 2006, total net sales decreased 0.8% and comparable store sales decreased 3.5% for the thirteen-week period ended February 2, 2008.

Net income from continuing operations for the fourth quarter of fiscal year 2007 was $11.2 million, or $0.18 per diluted share, as compared to prior year net income from continuing operations of $0.41 per diluted share.

For fiscal year 2007, net sales were $1,194.9 million, as compared to net sales of $1,153.3 million for fiscal year 2006. Excluding sales from the extra week in fiscal year 2006, total net sales increased 5.0% and comparable store sales decreased 1.3% for the fifty-two-week period ended February 2, 2008.

Net income from continuing operations for fiscal year 2007 was $26.7 million, or $0.44 per diluted share, as compared to prior year net income from continuing operations of $0.81 per diluted share.

Richard P. Crystal, New York & Company's Chairman and CEO, stated: "While we experienced lower sales and earnings in the fourth quarter compared to the prior year, primarily as a result of increased promotional activity due to the challenging retail environment, we did make progress on a number of initiatives. We continued to see strength in our wear-to-work categories.

We began to see improved product offerings in our accessory assortment, and our e-commerce business continued to grow and exceed plans. Finally, we were very disciplined in managing our inventory and expenses. As we move into 2008, we believe continuing these strategies will lead to improved profitability and increased shareholder value."

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