Jan 11 (Reuters) - Women's apparel chain New York & Co Inc (NWY.N) said it will launch more outlet stores, following favorable customer response to a test of the concept in 2009, while also backing its fourth-quarter profit view.

City Style Pleated Strapless Print Dress from New York & Co - Photo: www.nyandcompany.com

The company expects to open 20 to 25 such stores during fiscal 2010, and said the initial related costs are expected to negatively impact results during the first half of fiscal 2010.

However, the new stores are expected to achieve profitability in their first full year of operation.

"The launch of our outlet store strategy... allows us to enter a highly productive channel of distribution with significant growth potential," Chief Executive Richard Crystal said in a statement.

The outlet stores will sell apparel and accessories, and over time will include merchandise manufactured exclusively for the outlets, the company said/

Shares of the company, which is scheduled to report fourth quarter results in March, had closed at $4.42 Friday 8 January on the New York Stock Exchange.

For more detail, please click (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anthony Kurian)