On April 5, 2013, rue21, Inc. and certain of its domestic subsidiaries entered into an amended and restated credit agreement, which amends and restates the company’s existing credit agreement dated as of April 10, 2008, as amended on November 24, 2009 and November 18, 2011, with Bank of America, N.A., as lender and administrative agent. The credit agreement increases the initial commitment under the company’s existing credit agreement by $15 million from $85 million to $100 million, and is by and among the company, as the lead borrower, for itself and as agent for the other borrowers from time to time made party to the credit agreement, r services llc, a subsidiary of the company, as guarantor and the other guarantors from time to time made party to the credit agreement and the following lenders: Bank of America, N.A., as administrative agent, collateral agent, swing line lender, and letter of credit issuer; and JPMorgan Chase Bank, N.A. The credit agreement is a five-year revolving credit facility for general corporate purposes with a maturity date of April 5, 2018, and includes an accordion feature under which total commitments under the facility may be increased by an additional $30 million, subject to satisfaction of certain conditions. Borrowings will bear interest at either the base rate (the higher of Bank of America’s prime rate, the federal funds rate plus 0.50% and the LIBOR rate for a one month interest period, plus 1.0%), plus an applicable margin between 0.50% and 1.00% or an adjusted LIBOR rate, plus an applicable margin between 1.50% and 2.00%. The agreement contains usual and customary representations and warranties, affirmative and negative covenants and events of default for transactions of this type.

rue21, Inc. opened its 900(th) store on March 21, 2013, in the Southern Hills Shopping Center of West Plains, Missouri. The 5,000 square foot store is the Company's 21(st) location in that state. rue21 has successfully opened over 500 stores in the last five years. The company expects to open another 125 stores in 2013 and has opened 23 stores so far this year. The company intends to open its 1,000(th) store in the fourth quarter of 2013, and the company's long term plan is to grow the chain to over 1,700 stores in the United States.

rue21, Inc. reported unaudited consolidated earnings results for the fourth quarter and full fiscal year ended February 2, 2013. For the fourth quarter, net sales increased 22.4% to $269.1 million from $219.9 million a year ago, including a comparable store sales increase for the quarter of 0.7% following a 2.2% decrease in the fourth quarter of fiscal 2011. Net income and diluted earnings per share (EPS) for the fourth quarter were impacted by non-recurring professional fees of $1.2 million. On a GAAP basis, net income increased 16.4% and diluted EPS were $0.62 versus $0.52 in the fourth quarter of 2011. Adjusting out non-recurring professional fees in this year's fourth quarter, net income increased by 22.4% and adjusted EPS were $0.65 versus $0.52 in the fourth quarter of fiscal 2011. Income from operations was $23.543 million against $20.973 million a year ago. Income before income taxes was $23.506 million against $20.957 million a year ago. Net income was $15.0 million compared to $12.9 million for the last year. For fiscal 2012, net sales increased 18.6% to $901.9 million from $760.3 million, and comparable-store sales increased 0.7%. On a GAAP basis, net income increased 12.7% and diluted EPS were $1.76 versus $1.55 in fiscal year 2011. Net income and EPS for fiscal 2012 were impacted by non-recurring professional fees and non-recurring litigation expense associated with the settlement and related costs of wage and hour claims in California. Adjusted net income increased 19.4% for the year, to $46.5 million from $39.0 million. Adjusted EPS were $1.87 in fiscal 2012 as compared to $1.55 in fiscal 2011. Income from operations was $68.461 million against $62.846 million a year ago. Income before income taxes was $68.488 million against $62.855 million a year ago. Net income was $435.0 million compared to $38.96 million for the last year. For fiscal 2013 (52 week year), the company currently expects diluted earnings per share to be in the range of $2.10 to $2.15 not including the impact of the company's investments in the construction of its e-commerce platform. The company expects comparable store sales growth in 2013 to be in the low single digits. The company guidance incorporates 24.2 million average diluted shares expected for fiscal 2013. CapEx, net of TA [ph], 10 allowances of $47 million to $53 million for 2013. CapEx that just described, that line will grow more in line with sales. So free cash flow has been $25 million to $40 million per year. Diluted earnings per share for the first quarter are expected to be in the range of $0.47 to $0.50, not including the impact of the company's investment in its e-commerce platform. The company currently expects comparable store sales growth in the first quarter of fiscal 2013 to be slightly negative to slightly positive. The company plan to open 125 stores in 2013 with approximately 40 stores opening in the first quarter compared to 40 stores last year. Comp sales results for first quarter are expected to land down negative 2% to positive 2% by quarter end.