Too, Inc. Forecasts Improved Fourth Quarter Sales and Earnings

    Business Editors/Consumer Products Writers

    NEW ALBANY, Ohio--(BUSINESS WIRE)--Jan. 4, 2005--Too, Inc. (NYSE:TOO) said today that based on net sales for the nine weeks ended January 1, 2005, it expects to report a 3% to 4% increase in comparable store sales for the fourth quarter ending January 29, 2005. The company also said it expects to report net income per diluted share for the fourth quarter of at least $0.63, compared to net income per diluted share of $0.51 reported for the 2003 fourth quarter. The 2003 fourth quarter included a loss from discontinued operations, net of tax, of $0.01 per diluted share.
    The company said that the expected earnings improvement would be largely attributable to higher holiday sales and fewer promotional markdowns, which benefits the gross income rate of sales.
    "Within our strong holiday sales results is the terrific performance by Limited Too's early spring apparel in stores in the warmer climates," said Mike Rayden, Chairman, President and CEO of Too, Inc. Mr. Rayden added that the company will conduct its spring floor set in all stores on January 24, 2005.
    Too, Inc. plans to report fourth quarter 2004 results on Wednesday, February 16, 2005.

    Too, Inc. is a leading specialty retailer for young girls. At Limited Too, the company sells apparel, swimwear, sleepwear, underwear, footwear, lifestyle and personal care products for active, fashion-aware 'tween (ages 7 to 14) girls. Limited Too currently operates 575 stores in 46 states and Puerto Rico, and publishes a catalog coinciding with key 'tween shopping times throughout the year. Limited Too also conducts e-commerce on its Web site, www.limitedtoo.com. In January 2004, the company launched Justice, a new specialty retail concept for 'tween girls, offering sportswear, related accessories and lifestyle items to value-conscious customers, predominantly in off-the-mall store locations. Justice currently operates 35 stores in 14 states.

    The company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). This press release contains various "forward-looking statements" within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words "anticipate," "estimate," "project," "believe," "intend," "expect," "hope," "risk," "intend," "could," "pro forma" "potential" or similar words. These statements discuss future expectations, contain projections regarding future developments, operations or financial conditions, or state other forward-looking information. These forward-looking statements involve various important risks, uncertainties and other factors that could cause the company's actual results for 2004 and beyond to differ materially from those expressed in the forward-looking statements.
    The following factors, among others, could affect the company's future financial performance and cause actual future results to differ materially from those expressed or implied in any forward-looking statements included in this press release: changes in consumer spending patterns, consumer preferences and overall economic conditions; the impact of competition and pricing; changes in weather patterns; currency and exchange risks; changes in existing or potential trade restrictions, duties, tariffs or quotas; changes in political or financial stability; changes in postal rates and charges and paper and printing costs; availability of suitable store locations at appropriate terms; ability to develop new merchandise; ability to hire and train associates; and/or other risk factors that may be described in the Safe Harbor Statement and Business Risks section of the company's Form 10-K, filed April 29, 2002, as well as other filings with the Securities and Exchange Commission.
    Future economic and industry trends that could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. The inclusion of forward-looking statements should not be regarded a representation by the company, or any other person, that the company's objectives will be achieved. The forward-looking statements made herein are based on information presently available to the company's management. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

--30--JSW/cl*

CONTACT: Too, Inc. Robert Atkinson, 614-775-3739 Company Home Page: http://tooinc.com

KEYWORD: OHIO INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD APPAREL/TEXTILES RETAIL EARNINGS SOURCE: Too, Inc.

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