New York & Company Sees Q4 Comp Store sales to Decline in the Mid to High Single-Digit Range

New York & Company, Inc.

today updated its fourth quarter fiscal 2011 guidance based on the Company's quarter-to-date performance and its expectations for the balance of the quarter. Regarding its revised outlook for the fourth quarter of fiscal 2011, the Company provided the following information: Comparable store sales are expected to decline in the mid to high single-digit range. Gross margins are projected to decrease approximately 650 to 750 basis points versus last year reflecting significantly higher levels of promotional activity to drive traffic, increase sales, and liquidate non go-forward holiday inventory to ensure that inventories are well positioned entering the Spring season. Selling, general and administrative expenses remain well controlled and are expected to be down as compared to the prior year even after including approximately $2 million of non-cash impairment costs; however, as a percentage of net sales these expenses are expected to increase approximately 150 basis points compared to last year on lower comparable store sales. The Company expects net loss for the fourth quarter of fiscal 2011 to range between $11 million and $13 million. Total year-end inventories are projected to decrease significantly from the Company's previous expectations and are now expected to be up slightly versus last year reflecting a significant reduction in clearance inventory offset by increases in goods in-transit to support early Spring selling. On-hand inventory is expected to be down in the double digit range as a result of significantly less clearance goods versus last year. The Company expects to end fiscal 2011 with no borrowings and cash-on-hand in excess of $45 million.