New York & Company, Inc. Announces Third Quarter 2007 Results

New York & Company, Inc. (NYSE:NWY), is a specialty apparel chain with 568 New York & Company retail stores. On October 18, 2007, the Company announced that following a thorough review of strategic alternatives for its JasmineSola store concept, the Company has decided to exit the 23 store JasmineSola chain by the end of the fourth quarter of fiscal year 2007. As a result of the exit strategy, the Company is reporting the consolidated operating results and providing supplemental information for the New York & Company brand and the JasmineSola brand separately, for the third quarters and the nine month year-to-date periods ended November 3, 2007 and October 28, 2006. Third Quarter Operating Results Consolidated net sales for the third quarter of fiscal year 2007 increased 5.9% to $287.0 million, as compared to $270.9 million in the third quarter of fiscal year 2006. New York & Company net sales for the third quarter of fiscal year 2007 increased 6.3% to $276.4 million, as compared to $260.0 million for the third quarter of fiscal year 2006. Comparable store sales for the New York & Company brand decreased 4.8% for the third quarter of fiscal year 2007, as compared to a 0.6% increase in the prior year third quarter. JasmineSola net sales for the third quarter of fiscal year 2007 decreased 2.9% to $10.6 million, as compared to $10.9 million for the third quarter of fiscal year 2006. Consolidated net loss in the third quarter of fiscal year 2007 was $16.0 million, or $0.27 per diluted share, as compared to net income in the prior year period of $9.6 million, or $0.16 per diluted share. New York & Company net income for the third quarter of fiscal year 2007 was $5.3 million, or $0.09 per diluted share, as compared to net income in the prior year period of $10.1 million, or $0.17 per diluted share. JasmineSola net loss for the third quarter of fiscal year 2007 was $21.3 million, or $0.36 per diluted share, as compared to a net loss in the prior year period of $0.5 million, or $0.01 per diluted share. The JasmineSola net loss includes after tax charges of $21.1 million, or $0.36 per diluted share, related to the impairment of JasmineSola assets, including goodwill, trademarks and property and equipment recognized in connection with the decision to exit the business. The computation of diluted earnings per share does not assume exercise or issuance of shares that would have an antidilutive effect on earnings per share. As a result, for the three months ended November 3, 2007 there are 58.8 million fully diluted shares outstanding, which excludes 3.2 million antidilutive stock options. Net earnings per diluted share for the three months ended October 28, 2006 is based on 60.0 million fully diluted shares. Year-to-Date Operating Results Consolidated net sales for the nine month period ended November 3, 2007 increased 7.8% to $865.3 million, as compared to $802.9 million in the nine months ended October 28, 2006. New York & Company net sales for the nine month period ended November 3, 2007 increased 7.7% to $835.5 million, as compared to $776.0 million in the nine months ended October 28, 2006. Comparable store sales for the New York & Company brand decreased 0.3% for the nine month period ended November 3, 2007, as compared to a 4.4% decrease in the prior year period. JasmineSola net sales for the nine month period ended November 3, 2007 increased 10.8% to $29.8 million, as compared to $26.9 million in the nine months ended October 28, 2006. Consolidated net loss for the nine month period ended November 3, 2007 was $11.7 million, or $0.20 per diluted share, as compared to net income in the prior year period of $22.1 million, or $0.37 per diluted share. New York & Company net income for the nine month period ended November 3, 2007 was $15.5 million, or $0.27 per diluted share, as compared to net income in the prior year period of $23.4 million, or $0.39 per diluted share. JasmineSola net loss for the nine month period ended November 3, 2007 was $27.2 million, or $0.47 per diluted share, as compared to a net loss in the prior year period of $1.3 million, or $0.02 per diluted share. The JasmineSola net loss for the nine month period ended November 3, 2007 includes an after tax charge of $21.1 million, or $0.36 per diluted share, related to the impairment of JasmineSola assets, including goodwill, trademarks and property and equipment recognized in connection with the decision to exit the business and an after tax charge of $3.0 million or $0.05 per diluted share relating to costs associated with the completion of the Company’s arbitration proceeding in April and charges to liquidate inventory resulting from the loss of a JasmineSola lease and the resulting modification of the closeout inventory strategy. The computation of diluted earnings per share does not assume exercise or issuance of shares that would have an antidilutive effect on earnings per share. As a result, for the nine months ended November 3, 2007 there are 58.3 million fully diluted shares outstanding, which excludes 3.6 million antidilutive stock options. Net earnings per diluted share for the nine months ended October 28, 2006 is based on 59.9 million fully diluted shares. Richard P. Crystal, New York & Company’s Chairman and CEO, stated: "We are pleased that our strategy of maximizing profitability by controlling inventory and managing expenses has enabled us to exceed the high end of our guidance in a challenging business environment. As we enter the all- important holiday season, we believe that inventory per average store being down 6.0% is prudent and with tight expense management we are in a position to meet our stated guidance for the balance of the year. We are excited about our new bath and body launch, pleased with our sustained success in the pant, dress, skirt, jacket and sweater categories, and look forward to continued growth in our E-Commerce business.” For the New York & Company brand, the Company opened 12 new stores and closed one store during the quarter, ending the quarter with 568 stores and 3.3 million selling square feet in operation. Guidance Fourth Quarter of Fiscal 2007 The Company’s outlook for diluted earnings per share is in the range of $0.23 to $0.32 for the New York & Company brand for the fourth quarter of fiscal year 2007. The Company’s outlook for the JasmineSola brand is a net loss per diluted share in the range of $0.14 to $0.11. As a result, the consolidated company net earnings per diluted share are expected to be in the range of $0.09 to $0.21 for the fourth quarter of fiscal year 2007, based on 61.5 million fully diluted shares outstanding. This compares to actual fourth quarter of fiscal year 2006 net earnings per diluted share of $0.40, inclusive of a loss of $0.02 in the JasmineSola brand, based on 60.6 million fully diluted shares outstanding. The Company’s outlook for the fourth quarter of fiscal year 2007 includes slightly positive to low negative single-digit comparable store sales growth in the New York & Company brand. The Company’s consolidated fourth quarter of fiscal year 2007 outlook is summarized as follows:   Guidance range   Low   High New York & Company Brand $ 0.23     $ 0.32   JasmineSola Brand $ (0.14 )   $ (0.11 ) Consolidated Company $ 0.09     $ 0.21   For the New York & Company brand, the Company plans to open approximately 16 new stores and close five stores during the fourth quarter, ending the quarter with approximately 579 New York & Company stores and approximately 3.4 million selling square feet. Fiscal Year 2007 The Company’s current outlook for diluted earnings per share is in the range of $0.49 to $0.58 for the New York & Company brand for the full fiscal year 2007. The Company’s outlook for the JasmineSola brand is a net loss per diluted share in the range of $0.59 to $0.55, including approximately a $0.49 to $0.45 loss related to the exit of the JasmineSola business. As a result, the consolidated company net earnings per diluted share is currently expected to be in the range of a loss of $0.10 to income of $0.03 for the full fiscal year, based on 61.1 million fully diluted shares outstanding. This compares to the Company’s previous guidance range for net earnings per diluted share of $0.32 to $0.45, which did not include the cost to exit the JasmineSola brand, and compares to actual fiscal year 2006 net earnings per diluted share of $0.77, inclusive of a loss of $0.04 in the JasmineSola brand, based on 60.0 million fully diluted shares outstanding. The Company’s consolidated outlook for the full fiscal year 2007 is summarized as follows:     Revised guidance range   Previous guidance Range     Low   High   Low   High New York & Company Brand   $ 0.49     $ 0.58     $ 0.47     $ 0.58   JasmineSola Brand   $ (0.59 )   $ (0.55 )   $ (0.15 )   $ (0.13 ) Consolidated Company   $ (0.10 )   $ 0.03     $ 0.32     $ 0.45   For the New York & Company brand, the Company plans to open approximately 53 stores (of which 16 will be opening during the fourth quarter), close 10 stores and remodel approximately 24 stores during fiscal year 2007, ending the year with 579 New York & Company stores and approximately 3.4 million selling square feet in operation, with new stores representing 229,000 selling square feet. Capital expenditures are estimated in the range of $75.0 million to $78.0 million in fiscal year 2007. Conference Call Information A conference call to discuss the third quarter of fiscal year 2007 results is scheduled for today Tuesday, November 20, 2007 at 9:00 am Eastern Standard Time. Investors and analysts interested in participating in the call are invited to dial (888) 562-3356 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.nyandcompany.com. A replay of this call will be available until midnight on November 27, 2007 and can be accessed by dialing (877) 519-4471 and entering pin number 9447726. Forward Looking Statements: This press release contains certain forward looking statements. Some of these statements can be identified by terms and phrases such as "anticipate,” "believe,” "intend,” "estimate,” "expect,” "explore”, "continue,” "could,” "may,” "plan,” "project,” "predict”, and similar expressions and include references to assumptions that we believe are reasonable and relate to our future prospects, developments and business strategies. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to: (i) our ability to open and operate stores successfully and the possible lack of availability of suitable locations on acceptable terms; (ii) seasonal fluctuations in our business; (iii) our ability to anticipate and respond to fashion trends, develop new merchandise and launch new product lines successfully; (iv) general economic conditions, consumer confidence and spending patterns; (v) our dependence on mall traffic for our sales; (vi) the susceptibility of our business to extreme and/or unseasonable weather conditions; (vii) our ability to retain, recruit and train key personnel; (viii) our reliance on third parties to manage some aspects of our business; (ix) changes in the cost of raw materials, distribution services or labor, including federal and state minimum wage rates; (x) our reliance on foreign sources of production, including the disruption of imports by labor disputes, political instability, legal and regulatory matters, duties, taxes, other charges and quotas on imports, local business practices, potential delays in shipping and related pricing impacts and political issues and fluctuation in currency and exchange rates; (xi) the potential impact of natural disasters and health concerns relating to outbreaks of widespread diseases, particularly on manufacturing operations of our vendors; (xii) the ability of our manufacturers to manufacture and deliver products in a timely manner while meeting our quality standards; (xiii) our ability to efficiently execute our exit strategy related to the JasmineSola business; (xiv) our ability to service any debt we incur from time to time as well as our ability to maintain the requirements that the agreements related to such debt impose upon us; (xv) the potential impact of national and international security concerns on the retail environment, including any possible military action, terrorist attacks or other hostilities; (xvi) our reliance on manufacturers to maintain ethical business practices; (xvii) our ability to protect our trademarks and other intellectual property rights; (xviii) our ability to maintain and our reliance on our information systems infrastructure; (xix) our dependence on the success of our brand; (xx) competition in our market, including promotional and pricing competition; (xxi) our reliance on the effective use of customer information; (xxii) the effects of government regulation; (xxiii) the control of our company by our sponsors; and (xxiv) other risks and uncertainties as described in our documents filed with the SEC, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to revise the forward looking statements included in this press release to reflect any future events or circumstances. About New York & Company, Inc. New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion-oriented, moderately-priced women’s apparel. The Company’s proprietary branded New York & Company ™ merchandise is sold exclusively through its national network of New York & Company retail stores and online at www.nyandcompany.com. The Company currently operates 568 New York & Company retail stores in 44 states. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company’s website: www.nyandcompany.com. Exhibit (1) New York & Company, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)         (Amounts in thousands, except per share amounts) Three monthsended November 3, 2007 %ofnetsales Three monthsendedOctober 28, 2006 %ofnetsales Net sales $ 286,980 100.0 % $ 270,922 100.0 % Cost of goods sold, buying and occupancy costs 202,329 70.5 % 180,996 66.8 % Gross profit 84,651 29.5 % 89,926 33.2 % Selling, general and administrative expenses 76,699 26.7 % 73,382 27.1 %   Loss from impairment charges related to JasmineSola 35,249 12.3 % — — % Operating (loss) income (27,297 ) (9.5 )% 16,544 6.1 % Interest expense, net of interest income 437 0.2 % 471 0.2 % (Loss) income before income taxes (27,734 ) (9.7 )% 16,073 5.9 % (Benefit) provision for income taxes (11,704 ) (4.1 )% 6,480 2.4 % Net (loss) income $ (16,030 ) (5.6 )% $ 9,593 3.5 % Basic (loss) earnings per share $ (0.27 ) $ 0.17 Diluted (loss) earnings per share $ (0.27 ) $ 0.16 Weighted average shares outstanding: Basic shares of common stock 58,845 56,381 Diluted shares of common stock 58,845 59,963 Selected operating data: (Dollars in thousands, except square foot data) Total net sales increase 5.9 % 6.5 % Comparable store sales (decrease)/increase (a) (4.8 )% 0.6 % Net sales per average selling square foot (b) $ 85 $ 82 Net sales per average store (c) $ 491 $ 493 Average selling square footage per store (d) 5,734 5,995 (a)   Represents comparable store sales for the New York & Company brand only.   (b) Net sales per average selling square foot is defined as net sales divided by the average of beginning and end of period selling square feet.   (c) Net sales per average store is defined as net sales divided by the average of beginning and end of period number of stores.   (d) Average selling square footage per store is defined as end of period selling square feet divided by end of period number of stores. Exhibit (2) New York & Company, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)         (Amounts in thousands, except per share amounts) Nine monthsended November 3,2007 %ofnetsales Nine monthsendedOctober 28,2006 %ofnetsales Net sales $ 865,344 100.0 % $ 802,917 100.0 % Cost of goods sold, buying and occupancy costs 623,419 72.0 % 558,307 69.5 % Gross profit 241,925 28.0 % 244,610 30.5 % Selling, general and administrative expenses 226,300 26.2 % 206,066 25.7 % Loss from impairment charges related to JasmineSola 35,249 4.1 % — — % Operating (loss) income (19,624 ) (2.3 )% 38,544 4.8 % Interest expense, net of interest income 917 0.1 % 1,438 0.2 % (Loss) income before income taxes (20,541 ) (2.4 )% 37,106 4.6 % (Benefit) provision for income taxes (8,812 ) (1.0 )% 14,957 1.8 % Net (loss) income $ (11,729 ) (1.4 )% $ 22,149 2.8 % Basic (loss) earnings per share $ (0.20 ) $ 0.40 Diluted (loss) earnings per share $ (0.20 ) $ 0.37 Weighted average shares outstanding: Basic shares of common stock 58,304 55,755 Diluted shares of common stock 58,304 59,853 Selected operating data: (Dollars in thousands, except square foot data) Total net sales increase 7.8 % 3.1 % Comparable store sales decrease (a) (0.3 )% (4.4 )% Net sales per average selling square foot (b) $ 258 $ 243 Net sales per average store (c) $ 1,505 $ 1,487 Average selling square footage per store (d) 5,734 5,995 (a)   Represents comparable store sales for the New York & Company brand only.   (b) Net sales per average selling square foot is defined as net sales divided by the average of beginning and end of period selling square feet.   (c) Net sales per average store is defined as net sales divided by the average of beginning and end of period number of stores.   (d) Average selling square footage per store is defined as end of period selling square feet divided by end of period number of stores. Exhibit (3) New York & Company, Inc. and Subsidiaries Supplemental Financial Information (Unaudited)     The following tables present the Company's condensed consolidating statements of income, in dollars and as a percentage of net sales, for the three months ended November 3, 2007 and October 28, 2006:     Three Months Ended November 3, 2007 Three Months Ended October 28, 2006 New York &Company JasmineSola   Consolidated Company New York &Company   JasmineSola     Consolidated Company (Amounts in thousands, except per share amounts) (Amounts in thousands, except per share amounts) Net sales $ 276,379 $ 10,601 $ 286,980 $ 260,007 $ 10,915 $ 270,922 Cost of goods sold, buying and occupancy costs 194,263 8,066 202,329 172,356 8,640 180,996 Gross profit 82,116 2,535 84,651 87,651 2,275 89,926 Selling, general and administrative expenses 73,758 2,941 76,699 70,254 3,128 73,382 Loss from impairment charges related to JasmineSola — 35,249 35,249 — — — Operating income (loss) 8,358 (35,655 ) (27,297 ) 17,397 (853 ) 16,544 Interest expense, net of interest income 437 — 437 471 — 471 Income (loss) before income taxes 7,921 (35,655 ) (27,734 ) 16,926 (853 ) 16,073 Provision (benefit) for income taxes 2,630 (14,334 ) (11,704 ) 6,822 (342 ) 6,480 Net income (loss) $ 5,291   $ (21,321 ) $ (16,030 ) $ 10,104 $ (511 ) $ 9,593   Basic (loss) earnings per share $(0.27 ) $0.17 Diluted (loss) earnings per share $(0.27 ) $0.16 Weighted average shares outstanding: Basic shares of common stock 58,845 56,381 Diluted shares of common stock 58,845 59,963   Three Months Ended November 3, 2007   Three Months Ended October 28, 2006 New York &Company     JasmineSola   Consolidated Company   New York &Company   JasmineSola     Consolidated Company Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of goods sold, buying and occupancy costs 70.3 % 76.1 % 70.5 % 66.3 % 79.2 % 66.8 % Gross profit 29.7 % 23.9 % 29.5 % 33.7 % 20.8 % 33.2 % Selling, general and administrative expenses 26.7 % 27.7 % 26.7 % 27.0 % 28.6 % 27.1 % Loss from impairment charges related to JasmineSola — % 332.5 % 12.3 % — % — % — % Operating income (loss) 3.0 % (336.3 )% (9.5 )% 6.7 % (7.8 )% 6.1 % Interest expense, net of interest income 0.2 % — % 0.2 % 0.2 % — % 0.2 % Income (loss) before income taxes 2.8 % (336.3 )% (9.7 )% 6.5 % (7.8 )% 5.9 % Provision (benefit) for income taxes 0.9 % (135.2 )% (4.1 )% 2.6 % (3.1 )% 2.4 % Net income (loss) 1.9 % (201.1 )% (5.6 )% 3.9 % (4.7 )% 3.5 % Exhibit (4)   New York & Company, Inc. and Subsidiaries Supplemental Financial Information (Unaudited)     The following tables present the Company's condensed consolidating statements of income, in dollars and as a percentage of net sales, for the nine months ended November 3, 2007 and October 28, 2006:   Nine Months Ended November 3, 2007 Nine Months Ended October 28, 2006 New York &Company   JasmineSola   Consolidated Company New York &Company   JasmineSola   Consolidated Company (Amounts in thousands, except per share amounts) (Amounts in thousands, except per share amounts) Net sales $ 835,531 $ 29,813 $ 865,344 $ 776,015 $ 26,902 $ 802,917 Cost of goods sold, buying and occupancy costs 595,281 28,138 623,419 537,004 21,303 558,307 Gross profit 240,250 1,675 241,925 239,011 5,599 244,610 Selling, general and administrative expenses 214,334 11,966 226,300 198,343 7,723 206,066 Loss from impairment charges related to JasmineSola — 35,249 35,249 — — — Operating income (loss) 25,916 (45,540 ) (19,624 ) 40,668 (2,124 ) 38,544 Interest expense, net of interest income 917 — 917 1,437 1 1,438 Income (loss) before income taxes 24,999 (45,540 ) (20,541 ) 39,231 (2,125 ) 37,106 Provision (benefit) for income taxes 9,495 (18,307 ) (8,812 ) 15,811 (854 ) 14,957 Net income (loss) $ 15,504 $ (27,233 ) $ (11,7298 ) $ 23,420 $ (1,271 ) $ 22,149   Basic (loss) earnings per share $ (0.20 ) $ 0.40 Diluted (loss) earnings per share $ (0.20 ) $ 0.37 Weighted average shares outstanding: Basic shares of common stock 58,304 55,755 Diluted shares of common stock 58,304 59,853    Nine Months Ended November 3, 2007   Nine Months Ended October 28, 2006 New York &Company   JasmineSola   Consolidated Company New York &Company   JasmineSola   Consolidated Company Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Cost of goods sold, buying and occupancy costs   71.2 % 94.4 % 72.0 % 69.2 % 79.2 % 69.5 % Gross profit 28.8 % 5.6 % 28.0 % 30.8 % 20.8 % 30.5 % Selling, general and administrative expenses 25.7 % 40.2 % 26.2 % 25.6 % 28.7 % 25.7 % Loss from impairment charges related to JasmineSola — % 118.2 % 4.1 % — % — % — % Operating income (loss) 3.1 % (152.8 )% (2.3 )% 5.2 % (7.9 )% 4.8 % Interest expense, net of interest income 0.1 % — % 0.1 % 0.2 % — % 0.2 % Income (loss) before income taxes 3.0 % (152.8 )% (2.4 )% 5.0 % (7.9 )% 4.6 % Provision (benefit) for income taxes 1.1 % (61.5 )% (1.0 )% 2.0 % (3.2 )% 1.8 % Net income (loss) 1.9 % (91.3 )% (1.4 )% 3.0 % (4.7 )% 2.8 % Exhibit (5) New York & Company, Inc. and Subsidiaries Condensed Consolidated Balance Sheets       (Amounts in thousands) November 3, 2007 February 3, 2007 October 28, 2006 (Unaudited) (Audited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 15,509 $ 68,064 $ 23,732 Accounts receivable 31,709 14,270 23,446 Inventories, net (a) 172,866 110,088 150,379 Deferred income taxes 14,167 — — Other current assets 29,523 22,440 22,590 Total current assets 263,774 214,862 220,147 Property and equipment, net 230,526 210,163 201,991 Goodwill — 11,088 11,088 Intangible assets 14,843 32,053 32,053 Other assets 2,397 1,633 1,814 Total assets $ 511,540 $ 469,799 $ 467,093 Liabilities and stockholders’ equity Current liabilities: Current portion – long-term debt $ 6,000 $ 6,000 $ 6,000 Accounts payable 114,752 66,631 96,219 Accrued expenses 56,724 61,982 62,105 Other current liabilities 3,723 10,285 6,819 Total current liabilities 181,199 144,898 171,143 Long-term debt, net of current portion 21,000 25,500 27,000 Deferred rent and other liabilities 76,520 58,602 58,003 Total liabilities 278,719 229,000 256,146 Total stockholders’ equity 232,821 240,799 210,947 Total liabilities and stockholders’ equity $ 511,540 $ 469,799 $ 467,093 (a)   As a result of the 53rd week in fiscal year 2006, the Company's current quarter end dates are shifted as compared to the prior year and therefore are not comparable. Total New York & Company inventory at November 3, 2007 was $167.1 million, which is down by approximately 6.0% on an average store basis compared to inventory of approximately $168.0 million at November 4, 2006. Exhibit (6) New York & Company, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)     (Amounts in thousands) Nine monthsendedNovember 3, 2007 Nine monthsendedOctober 28, 2006   Operating activities Net (loss) income $ (11,729 ) $ 22,149 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 29,235 23,713 Loss from impairment charges related to JasmineSola 35,249 — Amortization of deferred financing costs 186 207 Share-based compensation expense 1,371 1,231 Deferred income taxes (18,212 ) (1,210 ) Changes in operating assets and liabilities: Accounts receivable (17,439 ) (10,159 ) Inventories, net (62,778 ) (40,723 ) Prepaid expenses (6,012 ) (598 ) Accounts payable 48,121 5,239 Accrued expenses (5,249 ) 7,194 Income taxes payable (6,391 ) 3,727 Deferred rent 16,889 19,018 Other assets and liabilities   768   (3,369 ) Net cash provided by operating activities   4,009   26,419   Investing activities Capital expenditures   (56,378 )   (66,084 ) Net cash used in investing activities   (56,378 )   (66,084 )   Financing activities Net proceeds from public offering — 2,294 Payment of offering costs related to public offering — (439 ) Repayment of debt (4,500 ) (4,500 ) Payment of financing costs (243 ) — Proceeds from exercise of stock options 262 1,008 Excess tax benefit from exercise of stock options 4,431 7,598 Other   (136 )   — Net cash (used in) provided by financing activities   (186 )   5,961   Net decrease in cash and cash equivalents (52,555 ) (33,704 )   Cash and cash equivalents at beginning of period   68,064   57,436 Cash and cash equivalents at end of period $ 15,509 $ 23,732 Exhibit (7) New York & Company, Inc and Subsidiaries Store Count and Selling Square Footage (Unaudited)           Fiscal Year 2007 Total stores openat beginning ofthe quarter Number of storesopened duringthe quarter Number of storesremodeled duringthe quarter Number of storesclosed duringthe quarter Total storesopen at end ofthe quarter 1st Quarter (Actual) 560 11 — (2) 569 2nd Quarter (Actual) 569 14 14 (3) 580 3rd Quarter (Actual) 580 12 10 (2) 590 4th Quarter (Projected) 590 16 1 (27) (a) 579   Fiscal Year 2007 Total selling squarefeet at beginning ofthe quarter Selling square feetfor stores openedduring the quarter Reduction of selling square feetfor stores remodeledduring the quarter Reduction of selling square feetfor stores closedduring the quarter Total selling squarefeet at end ofthe quarter 1st Quarter (Actual) 3,313,437 52,297 — (13,263) 3,352,471 2nd Quarter (Actual) 3,352,471 58,167 (29,737) (23,535) 3,357,366 3rd Quarter (Actual) 3,357,366 52,063 (14,752) (11,582) 3,383,095 4th Quarter (Projected) 3,383,095 66,200 — (98,347) (a) 3,350,948 (a)   Includes 22 JasmineSola stores with 65,243 selling square feet. New York & Company, Inc. (Excluding JasmineSola) Store Count and Selling Square Footage (Unaudited)           Fiscal Year 2007 Total stores openat beginning ofthe quarter Number of storesopened duringthe quarter Number of storesremodeled duringthe quarter Number of storesclosed duringthe quarter Total storesopen at end ofthe quarter 1st Quarter (Actual) 536 11 — (2) 545 2nd Quarter (Actual) 545 14 13 (2) 557 3rd Quarter (Actual) 557 12 10 (1) 568 4th Quarter (Projected) 568 16 1 (5) 579   Fiscal Year 2007 Total selling squarefeet at beginning ofthe quarter Selling square feetfor stores openedduring the quarter Reduction of selling square feetfor stores remodeledduring the quarter Reduction of selling square feetfor stores closedduring the quarter Total selling squarefeet at end ofthe quarter 1st Quarter (Actual) 3,236,540 52,297 — (13,263) 3,275,574 2nd Quarter (Actual) 3,275,574 58,167 (29,640) (14,760) 3,289,341 3rd Quarter (Actual) 3,289,341 52,063 (14,752) (8,800) 3,317,852 4th Quarter (Projected) 3,317,852 66,200 — (33,104) 3,350,948