Exhibit 99.1

FINAL:  For Release

NEW YORK & COMPANY, INC. ANNOUNCES IMPROVED SECOND QUARTER 2011 RESULTS

~ Narrows Q2 Operating Loss by More Than $50M ~

~ Announces Expanded Credit Facility and Debt Repayment on Term Loan ~

~ Introduces Q3 Guidance ~

New York, New York — August 19, 2011 — New York & Company, Inc. [NYSE:NWY], a specialty apparel chain with 543 retail stores, today announced results for the second quarter ended July 30, 2011.  For the second quarter of fiscal year 2011, net sales were $228.6 million, as compared to $243.3 million for the second quarter of fiscal year 2010.  Comparable store sales for the second quarter of fiscal year 2011 decreased 3.4% with a significant reduction in markdowns versus a comparable store sales decrease of 1.8% in the prior year second quarter.

Operating loss for the second quarter of fiscal year 2011 was $15.1 million, reflecting a significant improvement from the prior year’s second quarter operating loss of $66.0 million.  The prior year’s operating loss included $17.8 million of previously disclosed restructuring and asset impairment charges.

Net loss for the second quarter of fiscal year 2011 narrowed to $15.4 million, or $0.25 per diluted share, with a negative effective tax rate of 1.1%.  This compares to the prior year net loss of $88.5 million, or $1.49 per diluted share, with a negative effective tax rate of 33.7%.  On a non-GAAP basis, normalizing taxes to eliminate the valuation allowance recorded in the second quarter of fiscal year 2011, the Company’s adjusted net loss for the second quarter of fiscal year 2011 was $9.3 million, or $0.15 per diluted share.  On a non-GAAP basis, excluding restructuring and asset impairment charges and normalizing taxes to eliminate the valuation allowance adjustments, the Company’s adjusted net loss for the second quarter of fiscal year 2010 was $29.3 million, or $0.49 per diluted share.  Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” in Exhibit 5 of this press release.

Gregory Scott, New York & Company’s CEO, stated:  “Our second quarter results improved significantly from the prior year.  Customers continued to respond favorably to our improved wear-to-work assortments including suiting separates and dresses.  We also advanced our multi-channel growth initiative with strong results reported in our outlet division and more than a 50% sales increase in our eCommerce business.  While there were several positives in the quarter that demonstrate progress toward our goals, weakness in our casual assortment combined with significantly less clearance merchandise than last year led to a comparable store sales decline.”

Mr. Scott continued:  “As we begin the third quarter, we expect to build upon our success in wear-to-work, which increases as a percentage of our sales in the fall season.  We anticipate continued softness in our casual business during the quarter as we implement strategic initiatives which will be reflected in the spring 2012 season.  As anticipated, fiscal year 2011 remains a transition year and while we’ve made some tangible progress we look forward to further building on our merchandising, marketing, and multi-channel strategies as we move beyond this year and into 2012.”

During the quarter, the Company accomplished the following:

·                                  The Company’s eCommerce store delivered strong sales growth of more than 50%.  In addition, the Company successfully launched its mobile commerce site.

·                                  Gross profit as a percentage of net sales improved by 1,230 basis points versus the prior year, driven primarily by significantly lower levels of markdowns.  In addition, the Company leveraged buying and occupancy costs despite lower net sales.

·                                  Selling, general and administrative expenses remained well controlled, decreasing by $7.1 million, or 130 basis points, versus the prior year after excluding $15.7 million of non-cash charges recorded in the second quarter of fiscal year 2010.

·                                  Inventory remained tightly managed with total quarter-end inventory declining by 8.4%, as compared to the end of last year’s second quarter and declining by 2.0% on an average store basis.

·                                  The Company ended the quarter with $36.2 million of cash-on-hand and no outstanding borrowings under its revolving credit facility.

·                                  The Company remodeled five existing stores and closed 10 stores, ending the quarter with 543 stores, including 24 outlet stores, and 2.9 million selling square feet in operation.

For the six months ended July 30, 2011, net sales were $467.9 million, as compared to $480.3 million for the six months ended July 31, 2010.  Comparable store sales decreased 0.4% for the six months ended July 30, 2011, as compared to a 0.5% increase in the prior year period.  Operating loss for the six months ended July 30, 2011 was $18.7 million, reflecting a significant improvement from the prior year’s operating loss of $74.7 million.  The prior year’s operating loss included previously disclosed restructuring and asset impairment charges totaling $17.8 million recorded in the second quarter of fiscal year 2010.  Net loss for the six months ended July 30, 2011 narrowed to $19.1 million, or $0.32 per diluted share, with a negative effective tax rate of 0.6%.  This compares to the prior year net loss of $93.3 million, or $1.57 per diluted share, with a negative effective tax rate of 24.3%.  On a non-GAAP basis, normalizing taxes to eliminate the valuation allowance recorded during the six months ended July 30, 2011, the Company’s adjusted net loss for the six months ended July 30, 2011 was $11.5 million, or $0.19 per diluted share.  On a non-GAAP basis, excluding restructuring and asset impairment charges and normalizing taxes to eliminate the valuation allowance adjustments, the Company’s adjusted net loss for the six months ended July 31, 2010 was $34.2 million, or $0.58 per diluted share.  Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” in Exhibit 5 of this press release.

Credit Facility

The Company recently amended the terms of its credit facility with Wells Fargo Bank, N.A., to effectively increase the maximum credit available under the facility to $100 million, reflecting a $10 million increase from the Company’s previous credit agreement.  The amended credit facility consists of a $75 million revolving credit facility plus a fully committed accordion feature providing for the increase up to $100 million at the Company’s discretion.  The term of the amended credit facility was extended to August 10, 2016, securing this increased liquidity for five years.  Concurrently with the closing of the amended credit facility, the Company repaid in full the remaining outstanding balance of its existing term

loan in the amount of $4.5 million, fully extinguishing this long-term debt.  The Company currently has no outstanding borrowings under its new facility.

Outlook

The Company is providing the following outlook for the third quarter reflecting its current business trends and expectations for the balance of the quarter, as well as reflecting the volatility in the current economic environment.

·                  Comparable store sales for the third quarter of fiscal year 2011 are expected to be down slightly versus a comparable store sales gain of 3.6% in the year ago period.  The Company will have 542 stores in operation at the end of the third quarter as compared to 579 in the prior year.

·                  Gross margins are expected to be in the range of 24.0% to 25.5%, reflecting the combination of increases in product costs coupled with higher markdowns versus the year ago period.

·                  Selling, general and administrative expenses as a percentage of net sales for the third quarter of fiscal year 2011 are expected to decrease up to 100 basis points versus the prior year.

·                  The Company expects the effective tax rate for the third quarter of fiscal year 2011 to be approximately 0%.  As previously announced, the Company continues to provide for adjustments to the deferred tax valuation allowance initially recorded in the second quarter of fiscal year 2010 offsetting any future tax provisions or benefits resulting in an approximately 0% effective tax rate for GAAP purposes.

·                  The Company anticipates total inventory levels at the end of the third quarter of fiscal year 2011 to be flat versus the prior year.  On-hand inventory, which excludes inventory in-transit, is expected to be down during the early part of the third quarter, and up slightly on an average store basis at quarter end, in advance of the holiday season.

·                  While the Company expects to utilize its credit facility for certain seasonal working capital needs, it expects to end the year with no borrowings under its credit facility and no long-term debt.

·                  Capital expenditures are expected to be approximately $6.7 million for the third quarter of fiscal year 2011, as compared to $3.6 million in the prior year.  Depreciation expense for the period is estimated at $9.3 million.

·                  The Company expects to close one store and remodel five existing locations, ending the third quarter of fiscal year 2011 with 542 stores, including 26 outlet stores.

Conference Call Information

A conference call to discuss the second quarter of fiscal year 2011 results is scheduled for today Friday, August 19, 2011 at 8:00 am Eastern Time.  Investors and analysts interested in participating in the call are invited to dial 800-967-7134, referencing conference ID number 3079945, 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 August 26, 2011 and can be accessed by dialing (877) 870-5176 and entering conference ID number 3079945.

About New York & Company, Inc.

New York & Company, Inc. is a leading specialty retailer of women’s fashion apparel and accessories offering the latest NY Style.  The Company’s proprietary branded New York & Company ™ merchandise is sold exclusively through its national network of retail stores and eCommerce store at www.nyandcompany.com.  The Company currently operates 543 stores in 43 states. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company’s website: www.nyandcompany.com.

New York & Company, Inc.

Suzanne Rosenberg

Director, Investor Relations

212-884-2140

Investor/Media Contact:

ICR, Inc.

(203) 682-8200

Investor: Allison Malkin

Media: Kristina Jorge

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,” “continue,” “could,” “may,” “plan,” “project,” “predict”, and similar expressions and include references to assumptions that the Company believes are reasonable and relate to its 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) the impact of general economic conditions and their effect on consumer confidence and spending patterns; (ii) changes in the cost of raw materials, distribution services or labor; (iii) the potential for current economic conditions to negatively impact the Company’s merchandise vendors and their ability to deliver products; (iv) the Company’s ability to open and operate stores successfully; (v) seasonal fluctuations in the Company’s business; (vi) the Company’s ability to anticipate and respond to fashion trends; (vii) the Company’s dependence on mall traffic for its sales; (viii) competition in the Company’s market, including promotional and pricing competition; (ix) the Company’s ability to retain, recruit and train key personnel; (x) the Company’s reliance on third parties to manage some aspects of its business; (xi) the Company’s reliance on foreign sources of production; (xii) the Company’s ability to protect its trademarks and other intellectual property rights; (xiii) the Company’s ability to maintain, and its reliance on, its information technology infrastructure; (xiv) the effects of government regulation; (xv) the control of the Company by its sponsors and any potential change of ownership of those sponsors; and (xvi) other risks and uncertainties as described in the Company’s documents filed with the SEC, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to revise the forward looking statements included in this press release to reflect any future events or circumstances.

Exhibit (1)

New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

Selected operating data:

Exhibit (2)

New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

Selected operating data:

Exhibit (3)

New York & Company, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

Exhibit (4)

New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows

(Unaudited)

Exhibit (5)

New York & Company, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

A reconciliation of the Company’s GAAP to non-GAAP net loss before income taxes, provision (benefit) for income taxes, net loss and loss per diluted share for the three and six months ended July 30, 2011 and July 31, 2010 are indicated below. For the three and six months ended July 30, 2011 and July 31, 2010, this information reflects, on a non-GAAP adjusted basis, the Company’s operating results after excluding the effects of restructuring and certain asset impairment charges and normalizing taxes to eliminate valuation allowance adjustments. This non-GAAP financial information is provided to enhance the user’s overall understanding of the Company’s current financial performance. Specifically, the Company believes the non-GAAP adjusted results provide useful information to both management and investors by excluding expenses and earnings that the Company believes are not indicative of the Company’s operating results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, measures of financial performance prepared in accordance with GAAP.

(a)          The tax effect is calculated using a 40.2% effective tax rate.

(b)         Amounts may not add due to rounding.