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Piper Jaffray Investor Conference

New York, NY

June 9, 2011

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We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements.

Safe Harbor Statement

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Today’s Presentation

Discussion Topics

Who We Are

Strategic Initiatives

Financial Highlights

2011 Outlook

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Discussion Topics

Who We Are

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Who We Are

General Characteristics

Nationwide, Mall-Based, Integrated Lifestyle Women’s

Apparel Retailer

Fashion-Forward With a Contemporary Fit

Upscale Product Geared At Style-Conscious Women

Boutique Store Environment: 2,000 Sq. Ft.

Diversified Product Mix: Sportswear, Dresses,

Accessories

Operates 280 Stores in 43 States

General Characteristics

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What We Offer

Sophisticated and Contemporary Day and Evening Sportswear, Dresses and

Accessories

Sportswear $35 - $280

Dresses $75 - $420

Accessories $5 - $100

Merchandise Price Points

Mix

Sportswear 58%

Dresses 33%

Accessories 9%

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Contemporary & Modern

24 to 45 Years In Age: Attitude

Youthful, Confident and Fashion-Conscious

Target Customer

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Provides an important differentiation from other mall-based retailers because of unique offering, quality of product and price points

Key Differentiators

Loyal customer base through consistency in interpreting fashion trends

Capitalizing on growth in key fashion areas and implementation of forward looking strategy

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Stronger & More Efficient Supply Chain

Shift to Traditional Nine-Month Calendar

Change from fast track three-month calendar to

more traditional nine-month cycle

Access to better fabrications

Earlier planning enables upcoming collections to

be presented to the press for inclusion in fashion magazines – increasing

brand awareness

Planning

The re-engineering of our merchandise processes has improved our financial performance and enabled us to elevate our product offerings to meet our customer’s lifestyle needs

Taking Strides in Planning Efforts

Increasing flow of new deliveries to stores and taking markdowns on slower moving styles

sooner

Adjusting flow and quantity of styles to create a greater sense of urgency

for customers to shop

Accelerated inventory turns improving financial

performance

Greater Visibility & Better Pricing

Earlier planning has facilitated the sourcing of higher quality fabrics and enabled us to broaden our

assortments

Higher percentage of goods from overseas

factories to mitigate rising production costs

Increased use of ocean freight instead of air freight, resulting in significant savings

PlanningProduction Calendar Planning Sourcing & Production

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• Recent financial performance a result of strategies put into place in 2010• Strengthened design & merchandising leadership and

enhanced business processes• Elevated product offerings and more cohesive

assortments• Impactful brand marketing with reduced promotional

behavior• Production calendar shift, increased planning efforts,

greater sourcing visibility• Gross margin improvement driven by reduced

markdowns, leverage on merchandise, buying and occupancy costs

• Learnings from installation of traffic counters in select stores helping to drive conversion rates and optimization of labor scheduling

• Improvement in comparable store sales trend• 1st Quarter 2011: +8%

• Positive comp trends continued into Q2

Notable Developments

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Discussion Topics

Strategic Initiatives

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Strategic Initiatives

Gross Margin Improvement

Drive e-Commerce Platform

Optimize Labor Scheduling

Increase Conversion

Expand Market Reach

Further Improve Inventory Turnover

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Gross Margin Improvement

Continued Gross Margin Expansion

770 Basis Point

Improvement to 42.1% in Q1

2011

Increased Flow of New

Deliveries and Consistently

Strong Selling Assortments

Leverage on Merchandise,

Buying and Occupancy Costs from

Higher Sales

Increased Prices, Lower Markdowns

and Re-Focused

Promotional Cadence

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Increasing Flow of New Regular-Price Merchandise to Selling Floor

More Efficient Replenishment Strategy Through Third Party Distribution Center

Taking Markdowns in a More Strategic Manner

Quickly Addressing Slower-Moving Styles

Results in Improvement of Inventory Turns and Profitability

Further Improve Inventory Turnover

Markdown Strategy

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Drive e-Commerce Platform

.com

E-Commerce Sales Grew 74% in Q1 2011 and Represented 5.5% of Total Business

We Believe Channel Can Grow to Represent 10% or More of Total Business

Web-Exclusive, Higher Priced

Product

New Upgraded Web Platform to Launch Q3 2011

Enhanced Navigation &

Search Capabilities

Dedicated e-Commerce

Fulfillment Center

Faster Shipping Times

Lower Return Rate & Higher

Customer Satisfaction

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Optimize Labor Scheduling

• Fall 2010 – Installed 28 traffic counters in a variety of stores for the first time in Company history• Goal was to collect data to begin to understand

important measures like traffic patterns, conversion rates, service levels and sales opportunity

• Thorough analysis revealed that current labor coverage on the weekend did not support the sales volume on these significantly higher traffic days

• Conducted a test in 140 Cache stores in April 2011• Reallocated current scheduling and made an

investment to add additional staff hours to support the weekends in these stores

• Results were highly successful and initiative was rolled out to entire chain for May 2011

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Increase Conversion

Large Opportunity to Increase Conversion Through Optimized Labor Allocation

Improved Service Levels & Customer

Focus

Changes in Recruiting

Methodology

Huge Opportunity on Weekends When

Traffic is Heaviest

Will Lead to Improvement in Dollars Per Transaction and Overall Top Line Growth

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Expand Market Reach

Early Planning of Future Collections

Inclusion in Press Events

Placement in Fashion Magazines

Excellent Brand Building Opportunity

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Editor’s Event: April 2011

• Changes in production calendar have made future assortments available to the press• Intention is to garner editorial credit and features within fashion blogs and

publications as well as create celebrity wardrobe opportunities• Expect styles to have great placement ahead of the Fall selling season• Plan to host events seasonally to build awareness and excitement for the brand

First Ever Cache Fashion Editor’s Event in April 2011

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Discussion Topics

Financial Highlights

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Comp Sales By Quarter

• Positive Recent Sales Trend• Positive comp trend continues into Q2 despite more challenging comparisons

5.1%

(0.2%)

(6.4%)

7.7%

(8.0%)

(6.0%)

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Q2 2010 Q3 2010 Q4 2010 Q1 2011

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13 Weeks EndedApril 2, 2011 April 3, 2010

($ In Millions, except per share data)

Net Sales $52.1 $48.6

Gross Profit $21.9 $16.7 % Margin 42.1% 34.4%

Operating Income ($1.3) ($6.6) % Margin (2.4%) (13.6%)

Diluted EPS ($0.06) ($0.32)

Stores Open At End of Period 280 285

Comparable Store Sales 8.0% (7.0%)

First Quarter 2011 Results

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• Strong, Stable Balance Sheet

• As of April 2, 2011 :

• $21.2mm in Cash & Marketable Securities

• $24.7mm Including Pre-Paid Rent

• Total Inventory of $23.0mm

• $3.3mm in Current Receivables

• Virtually Zero Long Term Debt

• Positive Cash Flow

• Continue to Grow Cash Position

•

•

Strong Balance Sheet

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Stores At A Glance

Fiscal Year Beginning Opened Closed Ending Remodels Tot Sq Ft

2008 297 13 14 296 11 597,887

2009 296 4 14 286 1 575,522

2010 286 4 8 282 13 570,599

2011(E) 282 0 4 278 6 563,859

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Second Quarter 2011 vs. 2010

Second Quarter2011(E) 2010

Sales (In 000's) $58 - $59 $56

EPS $0.16 - $0.18 $0.07

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Discussion Topics

2011 Outlook

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2011 Outlook

• Return to Profitability in Q2 and Maintain Positive Cash Flow and Profitability for Full Year

• Achieve Positive Comp Store Sales in Mid-Single Digits for Q2 and Continue Forward Momentum

• Capital Expenditures Approximately $2mm for Full Year

• Key drivers• Continue to Present Customers with

Consistently Strong and Distinctive Selling Assortments

• AUR & Gross Margin Improvement• Maintain Capital Discipline• Focus On and Refine Key Initiatives that are

Improving Business Efficiency and Driving Sales Performance

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Piper Jaffray Conference

New York, NY

June 9, 2011