Exhibit 99.1

rue21, inc. Announces Fourth Quarter and Fiscal Year 2010 Financial Results

Net Sales for the Fourth Quarter of 2010 Increased 22% to $190 million

Net Sales for Fiscal Year 2010 Increased 21% to $635 million

EPS of $0.44 for the Fourth Quarter of 2010 and $1.21 for Fiscal Year 2010

Warrendale, PA — March 15, 2011 — rue21, inc. [NASDAQ: RUE] today announced its financial results for the fourth quarter and fiscal year ended January 29, 2011.

Highlights for the Fourth Quarter of Fiscal Year 2010:

	•		Net sales increased 22.3% to $190.1 million from $155.4 million in the fourth quarter of fiscal year 2009, which ended January 30, 2010.
	•		Comparable store sales increased 1.5% on top of an 8.6% increase for the same period in 2009.
	•		The Company opened 10 stores in the quarter versus 3 in the same period last year.
	•		Gross margin increased to 35.8% from 35.7% in the fourth quarter of fiscal year 2009.
	•		Fourth quarter net income increased 41% to $10.9 million from $7.7 million in the fourth quarter of fiscal year 2009.
	•		Diluted earnings per share were $0.44 compared to diluted earnings per share of $0.32 in the fourth quarter of fiscal year 2009.
	•		Average diluted shares outstanding were 25.0 million in the fourth quarter of fiscal 2010 versus 24.3 million in the comparable period last year.

Highlights for Fiscal Year 2010:

	•		Net sales increased 20.8% to $634.7 million from $525.6 million in fiscal year 2009.
	•		Comparable-store sales increased 2.1% on top of a 7.8% increase in fiscal year 2009.
	•		The Company opened 105 stores, closed 2 stores, and converted 31 stores to the rue21 etc! format. The Company ended the year with 638 stores in 44 states.
	•		Gross margin increased 120 bps to 37.0% from 35.8% in fiscal year 2009.
	•		Operating margin increased to 7.9% of net sales from 7.0% of net sales in fiscal year 2009.
	•		Net income increased 37.4% to $30.2 million from $22.0 million in fiscal year 2009.
	•		Diluted earnings per share were $1.21 versus $0.96 for fiscal 2009.
	•		The Company ended fiscal 2010 with no long-term debt and $50.1 million in cash and cash equivalents compared to $26.8 million at the end of fiscal year 2009, an 87% increase.

Bob Fisch, rue21’s President and CEO, stated: “We are pleased with the consistent performance we were able to deliver to our shareholders in 2010, topped off by 38% earnings per share growth in the fourth quarter. We opened 105 stores in 2010 which performed above our expectations. The Company had strong growth across all categories, with our etc! accessories merchandise leading the way as we converted 31 stores during the year to our larger etc! format. We are planning for 110 new stores and approximately 35 conversions in 2011. I am pleased with February and early March results due to our excellent selling of regular priced merchandise in all categories of business. We feel well positioned to achieve another quarter of profitable growth.”

Outlook:

For fiscal year 2011, the Company currently expects diluted earnings per share to be in the range of $1.40 to $1.44 as compared to $1.21 in fiscal year 2010. This is based on 25.2 million average diluted shares expected for fiscal year 2011 as compared to 25.0 million average diluted shares in fiscal year 2010. For the first quarter, the Company currently expects diluted earnings per share to be in the range of $0.27 to $0.29 as compared to $0.23 in the first quarter of fiscal year 2010. The Company currently expects a low to mid single digit comparable store sales increase in the first quarter of fiscal 2011.

Conference Call Information:

A conference call to discuss fourth quarter and fiscal 2010 financial results is scheduled for today, March 15, 2011 at 4:30 PM Eastern Time. To participate, dial toll-free (888) 556-4997 or (719) 325-2230 (international). The conference call will also be webcast live at www.rue21.com under the Investor Relations section. A replay of this call will be available on the Investor Relations section of the Company’s website, www.rue21.com, within two hours of the conclusion of the call and will remain on the website for ninety days.

About rue21, inc.

rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. At the end of the fourth quarter of fiscal 2010, the Company operated 638 stores in 44 states. Learn more at www.rue21.com.

Forward Looking Statements:

Certain statements herein, including statements relating to future store openings and growth strategies, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, consumer spending, our ability to effectively identify and respond to changing fashion trends, our ability to compete with other retailers, our strategy and expansion plans, implementation of systems upgrades, reliance on key personnel, trade restrictions, events that may affect our vendors or their ability to finance their operations, availability of suitable new store locations and other factors which are set forth in the Company’s Annual Report on Form 10-K filed March 31, 2010, and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to

publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Joseph Teklits / Melissa Mackay
ICR, Inc
203-682-8200
jteklits@icrinc.com

		Thirteen weeks ended								Fifty-two weeks ended
		January 29,				January 30,				January 29,				January 30,
		2011				2010				2011				2010
		(Unaudited)
		(in thousands, except per share data)
Net sales		$	190,093			$	155,386			$	634,728			$	525,600
Cost of goods sold (includes certain buying, occupancy and distribution center expenses)			122,090				99,960				399,896				337,693
Gross profit			68,003				55,426				234,832				187,907
Selling, general, and administrative expense			44,337				37,862				163,006				134,078
Depreciation and amortization expense			5,915				4,703				21,852				16,898
Income from operations			17,751				12,861				49,974				36,931
Interest expense, net			30				99				202				532
Income before income taxes			17,721				12,762				49,772				36,399
Provision for income taxes			6,831				5,040				19,528				14,382
Net income		$	10,890			$	7,722			$	30,244			$	22,017
Basic income per common share		$	0.45			$	0.33			$	1.25			$	0.99
Diluted income per common share		$	0.44			$	0.32			$	1.21			$	0.96
Weighted average basic common shares outstanding			24,335				23,530				24,277				22,267
Weighted average diluted common shares outstanding			25,029				24,281				25,002				23,037

		January 29,				January 30,
		2011				2010
		(Unaudited)
		(in thousands, except per share data)
Assets
Current assets:
Cash and cash equivalents		$	50,111			$	26,751
Accounts receivable			6,733				3,834
Merchandise inventory, net			96,051				72,693
Prepaid expenses and other current assets			10,580				6,783
Deferred tax assets			5,024				4,286
Total current assets			168,499				114,347
Property and equipment, net			91,371				73,147
Other assets			921				937
Total assets		$	260,791			$	188,431
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	82,075			$	59,963
Accrued expenses and other current liabilities			15,616				14,384
Accrued payroll and related taxes			12,053				10,486
Deferred rent and tenant allowances, current portion			7,033				5,509
Accrued income and franchise taxes			1,999				2,401
Total current liabilities			118,776				92,743
Long-term liabilities:
Long-term debt			—				—
Deferred rent, tenant allowances and other long-term liabilities			34,235				23,991
Deferred tax liabilities			5,651				4,249
Total long-term liabilities			39,886				28,240
Total liabilities			158,662				120,983
Commitments and Contingencies
Stockholders’ equity:
Common stock— par value $0.001 per share; 200,000 shares authorized; 24,379 issued and outstanding at January 29, 2011; 24,237 shares issued and outstanding at January 30, 2010			24				24
Additional paid in capital			31,552				27,115
Retained earnings			70,553				40,309
Total stockholder’s equity			102,129				67,448
Total liabilities and stockholders’ equity		$	260,791			$	188,431