UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-Q
                                   (Mark One)

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2007
                                       OR
          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

     For the transition period from................to......................
                        COMMISSION FILE NUMBER: 0-10345

                                  CACHE, INC.

             (Exact name of registrant as specified in its Charter)

               FLORIDA                                   59-1588181
   -------------------------------            ---------------------------------
   (State or other jurisdiction of            (IRS Employer Identification No.)
    incorporation or organization)

                  1440 BROADWAY, NEW YORK, NEW YORK     10018
                  ---------------------------------     -----
             (Address of principal executive offices) (zip code)

                                  212-575-3200
                                  ------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------
  (Former name, address and former fiscal year, if changed since last report)

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
filing requirements for the past 90 days. Yes |X| No |_|

    Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer or a non-accelerated filer. See definition of "Accelerated
Filer" and "Large Accelerated Filer" in Rule 12b-2 of the Exchange Act.

               Large Accelerated   Accelerated    Non-Accelerated
               Filer |_|           Filer |X|      Filer |_|

    Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  Yes |_| No |X|

    As of April 30, 2007, 16,296,733 common shares were outstanding.


<PAGE>


                          CACHE, INC. AND SUBSIDIARIES

                                     INDEX



 PART I. FINANCIAL INFORMATION

  Item 1.      Condensed Consolidated Financial Statements (unaudited)
               Condensed Consolidated Balance Sheets as of
               March 31, 2007, December 30, 2006 and April 1, 2006         3
               Condensed Consolidated Statements of Income for
               the thirteen weeks ended March 31, 2007 and
               April 1, 2006                                               4
               Condensed Consolidated Statements of Cash Flows
               for the thirteen weeks ended March 31, 2007 and
               April 1, 2006                                               5
               Notes to the Condensed Consolidated Financial
               Statements                                                  6
  Item 2.      Management's Discussion and Analysis of
               Financial Condition and Results of Operations               9
  Item 3.      Quantitative and Qualitative Disclosures About Market Risk 14
  Item 4.      Controls and Procedures                                    15


 PART II. OTHER INFORMATION


  Item 6.      Exhibits                                                   15

 SIGNATURES                                                               16

                                       2

<PAGE>


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

                          CACHE, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
<S>                                                 <C>                <C>            <C>

                                                    March 31,     December 30,     April 1,
ASSETS                                                2007            2006           2006
                                                  ------------- --------------- ---------------
                                                   (Unaudited)                     (Unaudited)
Current assets:
        Cash and equivalents                      $  9,106,000  $  19,363,000     $ 22,185,000
        Marketable Securities                       51,942,000     42,094,000       34,552,000
        Receivables, net                             4,418,000      4,794,000        3,697,000
        Inventories                                 36,135,000     34,829,000       34,427,000
        Prepaid expenses and other current assets    8,063,000      7,217,000        1,737,000
                                                  ------------- --------------- ---------------
           Total current assets                    109,664,000    108,297,000       96,598,000


Equipment and leasehold improvements, net           50,493,000     50,450,000       54,059,000

Other assets                                           444,000        439,000          886,000
                                                  ------------- --------------- --------------

           Total assets                           $160,601,000  $ 159,186,000    $ 151,543,000
                                                  ============= =============== ===============

LIABILITIES AND
STOCKHOLDERS' EQUITY

Current liabilities:
        Accounts payable                          $ 12,523,000  $  11,702,000    $  16,027,000
        Income taxes payable                               ---            ---          872,000
        Accrued compensation                         2,571,000      1,689,000        2,560,000
        Accrued liabilities                         10,441,000     11,515,000       12,624,000
                                                  ------------- --------------- --------------
           Total current liabilities                25,535,000     24,906,000       32,083,000


Other liabilities                                   16,103,000     15,749,000       16,171,000
Deferred income taxes, net                           1,882,000      2,068,000        2,042,000

Commitments and
contingencies


STOCKHOLDERS' EQUITY

  Common stock, par value $.01; authorized,
  20,000,000 shares; issued and outstanding
  16,287,483, 16,275,708 and 15,785,553                163,000        163,000          158,000

  Additional paid-in capital                        45,119,000     44,646,000       35,978,000
  Retained earnings                                 71,799,000     71,654,000       65,111,000
                                                  ------------- --------------- ---------------
           Total stockholders' equity              117,081,000    116,463,000      101,247,000
                                                  ------------- --------------- ---------------
           Total liabilities and
           stockholders' equity                   $160,601,000   $159,186,000     $151,543,000
                                                  ============= =============== ===============


</TABLE>
The accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of these statements.

                                       3
<PAGE>
                          CACHE, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                          FOR THE THIRTEEN WEEKS ENDED
                                  (Unaudited)

<TABLE>
<CAPTION>
<S>                                                        <C>              <C>

                                                        March 31,         April 1,
                                                          2007              2006
                                                       -----------       -----------

Net sales                                              $64,355,000        $63,821,000

Cost of sales, including                                35,364,000         34,639,000
buying and occupancy                                   -----------       ------------

Gross profit                                            28,991,000         29,182,000
                                                       -----------       ------------

Expenses
    Store operating expenses                            24,018,000         22,054,000
    General and administrative expenses                  5,462,000          4,824,000
                                                       -----------       ------------
         Total expenses                                 29,480,000         26,878,000
                                                       -----------       ------------

Operating income (loss)                                   (489,000)         2,304,000


Other income:
    Interest income                                        726,000            529,000
                                                       -----------        -----------

Income before income taxes                                 237,000          2,833,000

Income tax provision                                        92,000          1,105,000
                                                       -----------        -----------


Net income                                             $   145,000         $1,728,000
                                                       ===========        ===========



Basic earnings per share                                    $0.01               $0.11
                                                        ==========        ===========

Diluted earnings per share                                  $0.01               $0.11
                                                        ==========        ===========



Basic weighted average                                  16,283,000         15,776,000
shares outstanding
                                                        ==========        ===========

Diluted weighted average                                16,766,000         16,236,000
shares outstanding                                      ==========        ===========

</TABLE>

The accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of these statements.

                                       4
<PAGE>

                           CACHE, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           FOR THE THIRTEEN WEEKS ENDED
                                    (Unaudited)
<TABLE>
<CAPTION>

<S>                                                       <C>                <C>


                                                        March 31,         April 1,
                                                          2007              2006
                                                       -----------       -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                             $  145,000       $ 1,728,000
Adjustments to reconcile net income to net cash
    provided by operating activities:
      Depreciation and amortization                     2,719,000         2,749,000
      Non-cash compensation expense                       310,000           330,000
      Decrease in deferred income tax liabilities        (186,000)          (77,000)
      Amortization of deferred rent                      (297,000)         (389,000)
      Gift card breakage                                  (98,000)            ---
      Other, net                                           (5,000)          (22,000)

Change in assets and liabilities:
Decrease in receivables                                   376,000         2,037,000
Increase in inventories                                (1,306,000)       (1,642,000)
Decrease (increase) in prepaid expenses and other
current assets                                           (846,000)        3,745,000
Increase (decrease) in accounts payable                   821,000        (2,377,000)
Increase in income taxes payable                              ---           872,000
Increase (decrease) in accrued liabilities and
accrued compensation                                    1,966,000          (651,000)
                                                       -----------       -----------
Net cash provided by operating activities               3,599,000         6,303,000
                                                       -----------       -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
Purchase of marketable securities                     (22,916,000)      (23,666,000)
Maturities of marketable securities                    13,068,000        25,634,000
Payments for equipment and leasehold improvements      (4,171,000)       (3,032,000)
                                                       -----------       -----------
Net cash used in investing activities                 (14,019,000)       (1,064,000)
                                                       -----------       -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
Proceeds from the issuance of common stock                163,000           193,000
                                                       -----------       -----------
Net cash provided by financing activities                 163,000           193,000
                                                       -----------       -----------
Net increase (decrease) in cash and equivalents       (10,257,000)        5,432,000
Cash and equivalents, at beginning of period           19,363,000        16,753,000
                                                       -----------       -----------
Cash and equivalents, at end of period                 $9,106,000       $22,185,000
                                                       ===========      ============
Supplemental disclosure of cash flow information:
Income taxes paid                                      $    5,000       $    60,000
Accrued equipment and leasehold improvements           $  590,000       $ 2,191,000
</TABLE>

The accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of these statements.
                                       5
<PAGE>
                                  CACHE, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

References to the "Company,"  "we," "us," or "our" means Cache,  Inc.,  together
with its wholly-owned subsidiaries,  except as expressly indicated or unless the
context otherwise  requires.  We currently operate two chains of women's apparel
specialty  stores, of which 281 stores are operated under the trade name "Cache"
and 16 stores are operated under the trade name "Cache Luxe".

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance  with Rule 10-01 of Regulation S-X and do not include all
of the information  and footnotes  required by accounting  principles  generally
accepted in the United States.  However,  in the opinion of our management,  all
known  adjustments  necessary  for a fair  presentation  of the  results  of the
interim periods have been made. These  adjustments  consist  primarily of normal
recurring  accruals and estimates  that impact the carrying  value of assets and
liabilities. Actual results may materially differ from these estimates.

These condensed  consolidated financial statements should be read in conjunction
with the Company's audited consolidated  financial statements for the year ended
December 30, 2006,  which are included in the  Company's  Annual  Report on Form
10-K  with  respect  to such  period  filed  with the  Securities  and  Exchange
Commission.  All significant  intercompany  accounts and transactions  have been
eliminated.  The December 30, 2006 condensed  consolidated balance sheet amounts
are derived from the Company's audited consolidated financial statements.

The  Company's  Fiscal Year ("Fiscal  Year" or "Fiscal")  refers to the 52 or 53
weeks,  as  applicable,  ending the  Saturday  nearest to December 31. The years
ended December 29, 2007 ("Fiscal  2007"),  December 30, 2006 ("Fiscal 2006") and
December 31, 2005 ("Fiscal 2005") are each 52-week years.


2. STOCK BASED COMPENSATION

Effective  January 1, 2006,  the Company began  recording  compensation  expense
associated  with  stock  options  in  accordance  with  Statement  of  Financial
Accounting  Standards ("SFAS") No. 123R,  Share-Based Payment, as interpreted by
SEC Staff  Accounting  Bulletin No. 107.  During the 13-week periods ended March
31,  2007 and April 1,  2006,  the  Company  recognized  approximately  $310,000
($189,000 after tax or $0.01 per diluted share) and $330,000 ($201,000 after tax
or $0.01 per diluted share) in share-based  compensation expense. The grant date
fair value is calculated using the Black-Scholes  option valuation model.  There
were no options granted during the 13-week period ended March 31, 2007 and April
1, 2006. For the 13-week  periods ended March 31, 2007 and April 1, 2006,  there
were no excess tax benefits realized from the exercise of stock options.


3. BASIC AND DILUTED EARNINGS PER SHARE

In accordance with SFAS No. 128, "Earnings Per Share",  basic earnings per share
has been computed based upon the weighted average of common shares  outstanding.
Diluted earnings per share gives effect to outstanding stock options.

                                       6
<PAGE>
Earnings per common share has been computed as follows:


                                          13-Weeks Ended
                                      -----------------------
                                      March 31,      April 1,
                                        2007           2006
                                      ---------      --------
Net income                             $145,000    $1,728,000
Basic weighted number of average
   shares outstanding                16,283,000    15,776,000

Incremental shares from assumed
issuances of stock options              483,000       460,000

Diluted weighted average number of
of shares outstanding                16,766,000    16,236,000

Net income per share - Basic              $0.01         $0.11
                     - Diluted            $0.01         $0.11

Options to purchase  10,000 common  shares with an exercise  price of $18.30 per
share were excluded from the computation of diluted  earnings per share, for the
13-week  period in fiscal 2006,  because the exercise price was greater than the
market price.

4. RECENT  DEVELOPMENTS.

On May 9, 2007,  we announced  that we entered  into an agreement in  principle,
through the signing of a letter of intent, to acquire certain assets of Adrienne
Victoria Designs, Inc. ("AV"), our largest supplier. We expect this acquisition,
which is expected to close on or around June 30, 2007, to be accretive to fiscal
2007  earnings.  Based in New  York,  Adrienne  Victoria  Designs  is a  design,
sourcing and manufacturing  company.  Adrienne and Robert Kantor,  the Company's
founders will join Cache, with Adrienne assuming  responsibility for all aspects
of   merchandising   and  design  and  Robert   assuming   responsibilities   in
manufacturing.

5. RECENT ACCOUNTING PRONOUNCEMENTS

On July 13, 2006, FASB issued Interpretation No. 48 ("FIN 48"),  "ACCOUNTING FOR
UNCERTAINTY IN INCOME TAXES," which  clarifies the accounting for uncertainty in
income taxes recognized in the financial  statements in accordance with FASB No.
109,  "ACCOUNTING  FOR INCOME TAXES." FIN 48 provides  guidance on the financial
statement  recognition and measurement of a tax position taken or expected to be
taken  in a  tax  return.  FIN  48  also  provides  guidance  on  derecognition,
classification,   interest  and  penalties,   accounting  in  interim   periods,
disclosures  and  transition.  The  Company  adopted the  provisions  of FIN 48,
effective  December  31,  2006.  The  adoption of FIN 48 did not have a material
impact on the  consolidated  financial  statements.  The Company  classifies any
interest  and  penalty  payments or accruals  within  operating  expenses on our
financial statements. There were no accruals of interest and penalties, nor were
there any  unrecognized  tax  benefits  at the date of  adoption  of FIN 48. The
Internal  Revenue Service has reviewed the Company's  income tax returns through
the period  ended  January 1, 2005 and  proposed  no changes to the tax  returns
filed by the Company.

In  February,  2006,  FASB  issued  SFAS No.  159,  "THE FAIR  VALUE  OPTION FOR
FINANCIAL ASSETS AND FINANCIAL  LIABILITIES," ("SFAS No. 159"), which amends the
accounting for assets and liabilities in financial statements in accordance with
SFAS  No.  115,   "ACCOUNTING  FOR  CERTAIN   INVESTMENTS  IN  DEBT  AND  EQUITY
SECURITIES".  SFAS No. 159 permits  entities to choose to measure many financial
instruments  and  certain  other  items at fair  value  that  are not  currently
required  to be  measured  at fair  value.  This  statement  does not affect any
existing  accounting  literature that requires certain assets and liabilities to
be carried at fair value.  SFAS No. 159 is effective for fiscal years  beginning


                                       7
<PAGE>


after  December 15, 2007.  The Company does not expect this  statement to have a
material impact on the consolidated financial statements.

Effective  December  31,  2006,  the Company  adopted  EITF No. 06-03 "How Taxes
Collected  from  Customers and Remitted to  Governmental  Authorities  Should Be
Presented  in  the  Income  Statement."  The  Company  records  revenues  net of
applicable sales tax in our consolidated statements of income.

6. EQUIPMENT AND LEASEHOLD IMPROVEMENTS

                                       March 31,    December 30,     April 1,
                                         2007           2006           2006
                                     ------------   ------------   ------------

 Leasehold improvements             $ 52,945,000   $ 51,320,000   $ 52,860,000
 Furniture, fixtures and equipment    46,202,000     45,687,000     53,136,000
                                     ------------   ------------   ------------
                                      99,147,000     97,007,000    105,996,000

 Less: accumulated depreciation
    and amortization                 (48,654,000)   (46,557,000)   (51,937,000)
                                     ------------   ------------   ------------

                                    $ 50,493,000   $ 50,450,000   $ 54,059,000
                                     ============   ============   ============

7. ACCRUED LIABILITIES

                                       March 31,    December 30,     April 1,
                                         2007           2006           2006
                                     ------------   ------------   ------------

 Operating expenses                 $  3,825,000   $  2,978,000   $  2,507,000
 Other taxes                           1,765,000      2,190,000      1,933,000
 Group insurance                         744,000        737,000        624,000
 Sales return reserve                  1,018,000        845,000        902,000
 Leasehold additions                     590,000      2,000,000      2,191,000
 Other customer deposits and credits   2,499,000      2,765,000      4,467,000
                                     ------------   ------------   ------------

                                    $ 10,441,000   $ 11,515,000   $ 12,624,000
                                     ============   ============   ============

Leasehold additions generally represent a liability to general contractors for a
final  10%  payable  on  construction   contracts  for  store   construction  or
renovations.

8. BANK DEBT

During  November 2005,  the Company  reached an agreement with its bank to amend
the amount available under the Amended  Revolving  Credit Facility.  Pursuant to
the Amended Revolving Credit Facility, $17,500,000 is available until expiration
at November 30, 2008.  The amounts  outstanding  under the credit  facility bear
interest at a maximum per annum rate equal to the bank's  prime rate,  currently
8.25% at March 31, 2007, less 0.25%. The agreement  contains selected  financial
and other covenants.  Effective upon the occurrence of an Event of Default under
the Amended Revolving Credit Facility, the Company grants to the bank a security
interest in the Company's inventory and certain receivables.  The Company has at
all times been in compliance with all loan covenants.


                                       8
<PAGE>


There have been no borrowings  against the line of credit during fiscal 2006 and
the first quarter of fiscal 2007.  There were  outstanding  letters of credit of
$0.6 million,  $1.1 million and $0.7 million,  pursuant to the Amended Revolving
Credit  Facility,  at March 31,  2007,  December  30,  2006 and  April 1,  2006,
respectively.

9. LILLIE RUBIN EXIT COSTS

During fiscal 2006,  the Company  recorded a pre-tax  charge of $5.7 million for
asset  impairment  and  store  closing  costs for the exit of the  Lillie  Rubin
business. The Company closed the last three Lillie Rubin stores during the first
fiscal quarter of fiscal 2007. The Company did not incur significant  additional
exit costs upon the closing of these remaining properties.

The following is a summary of the activity in the reserve for exit costs:

                           BALANCE
                         BEGINNING OF                  CASH       BALANCE END
                            YEAR          CHARGES    PAYMENTS      OF PERIOD
Contractual
 termination costs        $385,000         $---     $307,000      $78,000
Severance costs            $43,000          ---      $43,000          ---

10. CONTINGENCIES

The Company is exposed to a number of asserted and unasserted  potential claims.
Management  does not believe that the resolution of these matters will result in
a material loss. We have not provided any third party financial guarantees as of
and for the 13-week periods ended March 31, 2007 and April 1, 2006.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Except for the historical  information and current statements  contained in this
Form 10-Q,  certain matters discussed  herein,  including,  without  limitation,
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations" are forward-looking statements that involve risks and uncertainties,
including,  without limitation, the effect of economic and market conditions and
competition,  the  ability to open new stores and expand into new  markets,  and
risks relating to foreign importing operations, which could cause actual results
to differ materially.

RESULTS OF OPERATIONS

The following table sets forth our results of operations for the 13-week periods
ended March 31, 2007 and April 1, 2006,  expressed as a percentage of net sales.
Amounts include the combined  results of our Cache,  Cache Luxe and Lillie Rubin
stores.


                                       9
<PAGE>


                                          13-Weeks Ended
                                      ------------------------
                                      March 31,       April 1,
                                        2007            2006
                                      ---------       --------

Sales                                   100.0%          100.0%
Cost of sales                            55.0            54.3
Gross profit                             45.0            45.7
Store operating expenses                 37.3            34.6
General and administrative
expenses                                  8.5             7.6
Operating income (loss)                  (0.8)            3.6
Interest income                           1.1             0.8
Income before income taxes                0.4             4.4
Income taxes                              0.1             1.7
Net income                                0.2             2.7

We  use a  number  of  key  indicators  of  financial  condition  and  operating
performance to evaluate the  performance of our business,  some of which are set
forth in the following table:

                                          13-Weeks Ended
                                      ------------------------
                                      March 31,       April 1,
                                        2007            2006
                                      ---------       --------
Total store count at end
of period                                297            302
Net sales growth                         0.8%           1.6%
Comparable store sales
growth                                   3.0%           1.0%
Average sales per
transaction growth (decrease)           (8.0%)          9.0%
Average number of
transactions growth (decrease)          11.0%          (5.0%)
Net sales per average
square foot                             $107           $107
Total square footage (in
thousands)                               600            616

NET SALES

Net sales  increased  to $64.4  million  from  $63.8  million,  an  increase  of
$534,000,  or 0.8%,  over the same 13-week period last year.  This reflects $1.4
million of additional net sales as a result of a 3% increase in comparable store
sales at Cache  stores.  Non-comparable  sales  decreased  $871,000  during  the
current  period,  as a result of the  reduction of $4.9 million in net sales for
Lillie  Rubin  stores  open in the  first  quarter  of  fiscal  2006,  which was
partially offset by sales at new store locations of approximately  $4.0 million,
during the current 13-week  period.  The increase in net sales in Fiscal 2007 at
Cache  stores  reflected  an 11%  increase  in  sales  transactions,  which  was
partially offset by an 8% decrease in average dollars per transaction, primarily
due to the increase in markdown sales.

GROSS PROFIT

Gross  profit  decreased  to $29.0  million  from $29.2  million,  a decrease of
$191,000,  or 0.7%,  as compared  to the same  13-week  period  last year.  This
decrease  was  primarily  due to  greater  markdowns  taken  in  our  sportswear
assortment in the current period,  which was partially  offset by higher initial
gross margins from increased direct sourcing of merchandise, as compared to last
year. In addition,  buying and occupancy  expenses rose as a percent of sales in
the current  period,  primarily due to the  relatively  small increase in sales,
during the current period. As a percentage of net sales,  gross profit decreased
to 45.0% from 45.7%, last year.


                                       10
<PAGE>
STORE OPERATING EXPENSES

Store  operating  expenses  increased to $24.0  million from $22.1  million,  an
increase of $1.9  million,  or 8.9%,  over the prior year 13-week  period.  As a
percentage of net sales,  store operating expenses increased to 37.3% from 34.6%
for the 13-week  period last year.  This  increase  reflects the impact of newer
stores,  which have not  achieved a mature sales volume level as compared to the
existing store base. The increase in store  operating  expenses was  principally
due to higher marketing expenses ($1.8 million) and payroll expense  ($281,000),
which were partially offset by lower charges in several expense categories.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses increased to $5.5 million from $4.8 million,
an increase of $638,000,  or 13.2%, over the same 13-week period last year. As a
percentage of net sales,  general and administrative  expenses increased to 8.5%
from  7.6%,  due to higher  professional  fees  ($641,000),  principally  public
company costs, as compared to last year.

INTEREST INCOME

Interest  income  increased to $726,000 from $529,000 in the same 13-week period
last year, primarily due to higher average cash balances.

INCOME TAXES

Income taxes decreased to $ 92,000 from $1.1 million, as compared to the 13-week
period last year.  The  decrease was  primarily  attributable  to lower  taxable
income in fiscal 2007. The estimated effective tax rate for both 13-week periods
in fiscal 2007 and fiscal 2006 was 39.0%.

NET INCOME

As a result of the factors  discussed  above,  net income  decreased to $145,000
from $1.7 million for the prior year 13-week period.

LIQUIDITY AND CAPITAL RESOURCES

Our cash requirements are primarily for working capital, the construction of new
stores,  the  remodeling  of  existing  stores and to improve  and  enhance  our
information technology systems.  During the 13-week period ended March 31, 2007,
we  generated  $3.6  million of cash flow from  operations  as  compared to $6.3
million  generated in the same period in fiscal  2006.  We expect to continue to
meet our operating cash requirements primarily through cash flows from operating
activities,  existing cash and cash equivalents,  and short-term investments. In
addition,  we have  available a $17.5  million  revolving  credit  facility (the
"credit facility") with Bank of America Retail Finance,  under which we have not
had outstanding  borrowings for several years. At March 31, 2007, we had working
capital of $84.1 million, cash and marketable securities of $61.0 million and no
third party debt outstanding.

                                       11
<PAGE>

The following table sets forth our cash flows for the period indicated:
<TABLE>
<CAPTION>
<S>                                                             <C>            <C>
                                                            -------------------------
                                                                 13-Weeks ended
                                                            -------------------------
                                                             March 31,     April 1,
                                                               2007          2006
                                                            ------------  -----------
Net cash provided by operating activities...............    $3,599,000    $6,303,000
Net cash used in investing activities...................   (14,019,000)   (1,064,000)
Net cash provided by financing activities...............       163,000       193,000
                                                          --------------  -----------
Net increase (decrease) in cash and equivalents.........  ($10,257,000)   $5,432,000
                                                          ==============  ===========
</TABLE>

During the  13-week  period  ended  March 31,  2007,  cash and cash  equivalents
decreased  by  $10.3  million,  primarily  due to net  purchases  of  marketable
securities  ($9.8  million).  Increases  in cash flows for the  current  period,
included   depreciation  expense  ($2.7  million),  a  decrease  in  receivables
($376,000),  a seasonal  increase in accounts payable  ($821,000),  as well as a
seasonal  increase in accrued  liabilities  ($2.0 million),  which was partially
offset by a seasonal  increase in  inventories  ($1.3  million),  an increase in
prepaid expenses ($846,000) and capital expenditures for our new store expansion
and remodeling program totaling $4.2 million.

We plan to open  approximately  10-15 new stores during fiscal 2007. The Company
opened four new Cache stores in the first quarter of fiscal 2007. We renovated 4
existing stores in the first quarter of fiscal 2007. We spent approximately $4.2
million  through March 31, 2007 and expect to spend an  additional  $6-7 million
during  the  balance  of fiscal  2007,  for both new store  and  existing  store
construction and remodeling, as well as the upgrade of the existing POS computer
system.

There have been no borrowings  against the line of credit during fiscal 2006 and
the first quarter of fiscal 2007.  There were  outstanding  letters of credit of
$0.6 million, $1.1 million and $0.7 million, pursuant to the credit facility, at
March 31, 2007, December 30, 2006 and April 1, 2006, respectively.

INFLATION

We do not  believe  that our  sales  revenue  or  operating  results  have  been
materially  impacted by inflation during the past two fiscal years. There can be
no assurance,  however,  that our sales revenue or operating results will not be
impacted by inflation in the future.

OFF-BALANCE SHEET ARRANGEMENTS

We  do  not  have  any  off-balance  sheet  arrangements  or  transactions  with
unconsolidated,  limited purpose entities. In the normal course of our business,
we enter into operating leases for store locations and utilize letters of credit
principally for the  importation of merchandise.  We do not have any undisclosed
material transactions or commitments involving related persons or entities.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our  accounting  policies  are  more  fully  described  in  Note 1 of  Notes  to
Consolidated  Financial Statements in our fiscal 2006 10-K. As disclosed in Note
1 of Notes to Consolidated  Financial  Statements,  the preparation of financial
statements in conformity with accounting  principles  generally  accepted in the
United States of America  ("GAAP")  requires  management  to make  estimates and
assumptions  about  future  events  that  affect  the  amounts  reported  in the
consolidated  financial  statements and accompanying  notes. Since future events
and their effects cannot be determined with absolute  certainty,  actual results
will differ from those estimates.  We evaluate our estimates and judgments on an
ongoing  basis  and  predicate  those  estimates  and  judgments  on  historical
experience and on various other factors that are believed to be reasonable under
the  circumstances.  Actual  results  will  differ  from these  under  different
assumptions or conditions.


                                       12
<PAGE>

Our  management  believes the  following  critical  accounting  policies,  among
others,  affect its more significant judgments and estimates used in preparation
of the Consolidated Financial Statements.

INVENTORIES.  Our  inventories  are valued at lower of cost or market  using the
retail  inventory  method.  Under  the  retail  inventory  method  ("RIM"),  the
valuation of inventories at cost and the resulting  gross margins are calculated
by  applying  a  calculated  cost  to  retail  ratio  to  the  retail  value  of
inventories.  RIM is an averaging method that has been widely used in the retail
industry due to its practicality. Additionally, it is recognized that the use of
RIM will  result  in  valuing  inventories  at the  lower of cost or  market  if
markdowns are currently taken as a reduction of the retail value of inventories.
Inherent in the RIM calculation  are certain  significant  management  judgments
including,  among others,  merchandise mark-on,  mark-ups, and markdowns,  which
significantly  impact  the  ending  inventory  valuation  at cost as well as the
resulting gross margins.  We take markdowns due to changes in fashion and style,
based on the following factors:  (i) supply on hand, (ii) historical  experience
and  (iii)  our  expectations  as to  future  sales.  We do not  anticipate  any
significant  change in our  markdown  strategy  that would cause a change in our
earnings. We believe that our RIM provides an inventory valuation, which results
in a carrying value at the lower of cost or market.

FINITE-LONG  LIVED  ASSETS.  The Company's  judgment  regarding the existence of
impairment indicators is based on market and operational performance.  We assess
the impairment of long-lived assets,  primarily fixed assets, whenever events or
changes  in   circumstances   indicate  that  the  carrying  value  may  not  be
recoverable.  Factors we consider  important  which could  trigger an impairment
review include the following:

     o    significant changes in the manner of our use of assets or the strategy
          for our overall business;

     o    significant negative industry or economic trends;

     o    store closings; or

     o    underperforming business trends.

In the  evaluation  of the fair value and future  benefits of finite  long-lived
assets, we perform an analysis by store of the anticipated  undiscounted  future
net cash flows of the related finite long-lived assets. If the carrying value of
the related asset exceeds the  undiscounted  cash flows,  the carrying  value is
reduced to its fair value.  Various  factors  including  future sales growth and
profit  margins  are  included  in this  analysis.  To the extent  these  future
projections or strategies change, the conclusion regarding impairment may differ
from the current  estimates.  No impairment charges were incurred in fiscal 2004
and 2005,  respectively.  In fiscal  2006,  the Company  recorded an  impairment
charge of  $101,000,  related to  one  store,  that the Company  closed in early
2007.

SELF INSURANCE. We are self-insured for losses and liabilities related primarily
to  employee  health  and  welfare  claims.  Losses are  accrued  based upon our
estimates of the aggregate liability for claims incurred using certain actuarial
assumptions  followed in the insurance industry and based on Company experience.
Adjustments to earnings  resulting  from changes in historical  loss trends have
been insignificant for fiscal 2004, 2005 and 2006. Further, we do not anticipate
any  significant  change in loss trends,  settlements  or other costs that would
cause a significant  change in our  earnings.  We maintain  stop-loss  insurance
coverage,  which covers us for benefits paid in excess of limits,  as defined in
the plan.

GIFT CARDS, GIFT CERTIFICATES AND CREDITS. The Company sells gift cards and gift
certificates ("Gift Cards") and issues credits to its customers when merchandise
is returned. The Company recognizes sales from Gift Cards when they are redeemed
by the customer and income when the  likelihood of the Gift Card being  redeemed
by the customer is remote (Gift Card breakage) and the Company  determines  that
it does not have a legal  obligation to remit the value of unredeemed Gift Cards
to the relevant jurisdiction as abandoned property.  The Company determines Gift
Card breakage income based upon historical redemption patterns.  Breakage income
represents  the  balance  of Gift  Cards,  for which the  Company  believes  the
likelihood of redemption  by the customer is remote.  At that time,  the Company
will recognize breakage income for those Gift Cards.

During the third quarter of fiscal 2006,  the Company formed a new subsidiary to
handle all Gift Card sales and maintain the liability  related to Gift Cards. As
a  result  of  transferring  all  existing   obligations  to  the  newly  formed
subsidiary,  the Company recognized $2.4 million of breakage income,  within net
sales,  in the  third  quarter  related  to Gift  Cards  sold/issued  since  the
inception of the Gift Card program.  The Company  recognized $98,000 of

                                       13
<PAGE>

breakage  income  during the period ended March 31, 2007.  There was no breakage
income recognized for the same period in the prior year.

REVENUE  RECOGNITION.  Sales are recognized at the "point of sale," which occurs
when merchandise is sold in an "over-the-counter" transaction or upon receipt by
a customer.  Sales of merchandise via our website are recognized at the expected
time of  delivery  to the  customer.  Our  customers  have the  right to  return
merchandise. Sales are reported net of actual and estimated returns. We maintain
a reserve for potential  product returns and record,  as a reduction to sales, a
provision for estimated product returns, which is determined based on historical
experience. Charges or credits to earnings resulting from revisions to estimates
on our sales  return  provision  for fiscal 2004,  2005 and 2006,  have not been
material.  Amounts  billed to  customers  for  shipping  and  handling  fees are
included in net sales at the time of shipment.  Costs  incurred for shipping and
handling are included in cost of sales.

INCOME TAXES.  The Company accounts for income taxes in accordance with SFAS No.
109,  "ACCOUNTING  FOR INCOME  TAXES."  This  statement  requires the Company to
recognize  deferred  tax  liabilities  and  assets for the  expected  future tax
consequences  of events that have been  recognized  in the  Company's  financial
statements  or tax returns.  Under this method,  deferred  tax  liabilities  and
assets are determined  based on the difference  between the financial  statement
carrying amounts and tax bases of assets and  liabilities,  using applicable tax
rates for the years in which the differences  are expected to reverse.  When tax
contingencies  become  probable,  a  liability  for  the  contingent  amount  is
estimated  based upon the Company's best  estimation of the potential  exposures
associated  with the  timing and amount of  deductions,  as well as various  tax
filing  positions.  As of  March  31,  2007,  the  Company  did not have any tax
contingencies.  The Company adopted the provisions of FIN 48, effective December
31,  2006.  The  impact  of  adoption  did not  have a  material  impact  on the
consolidated financial statements.

SEASONALITY.  We experience seasonal and quarterly fluctuations in net sales and
operating income. Quarterly results of operations may fluctuate significantly as
a result of a variety of factors,  including  the timing of new store  openings,
fashion trends and shifts in timing of certain holidays. Our business is subject
to seasonal influences, characterized by highest sales during the fourth quarter
(October,  November and  December)  and lowest  sales  during the third  quarter
(July, August and September).


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are  exposed  to the  following  types  of  market  risk-fluctuations  in the
purchase price of merchandise, as well as other goods and services: the value of
foreign  currencies  in  relation  to the U.S.  dollar;  and changes in interest
rates. Due to our inventory turn rate and our historical ability to pass through
the impact of any generalized changes in our cost of goods sold to our customers
through pricing adjustments,  commodity and other product risks are not expected
to be material. We purchase substantially all merchandise in U.S. dollars.

Our exposure to market risk for changes in interest rates relates to cash,  cash
equivalents  and  marketable  securities.  As  of  March  31,  2007,  our  cash,
equivalents and marketable  securities  consisted primarily of funds invested in
money market accounts,  which bear interest at a variable rate and U.S. treasury
instruments, as well as municipal bonds which bear interest at a fixed rate. Due
to the average maturity and the conservative nature of our investment portfolio,
we believe a sudden change in interest rates would not have a material effect on
the value of our  investment  portfolio.  As the  interest  rates on a  material
portion of our cash, cash equivalents and marketable  securities are variable, a
change  in  interest  rates  earned on our  investment  portfolio  would  impact
interest income along with cash flows, but would not materially  impact the fair
market value of the related underlying instruments.

                                       14

<PAGE>

ITEM 4. CONTROLS AND PROCEDURES

The Company  maintains  disclosure  controls and procedures that are designed to
ensure that information required to be disclosed in the reports that the Company
files or submits under the Securities  and Exchange Act is recorded,  processed,
summarized,  and reported  within the time periods  specified in the SEC's rules
and forms,  and that such  information is accumulated  and  communicated  to the
Company's management,  including its Chief Executive Officer and Chief Financial
Officer,   as  appropriate,   to  allow  timely  decisions   regarding  required
disclosures.

As of March 31, 2007, we carried out an evaluation,  under the  supervision  and
with the participation of our management,  including the Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
our disclosure  controls and procedures  pursuant to the Securities and Exchange
Act Rule  13(a)-15(b).  Our Chief Executive  Officer and Chief Financial Officer
concluded that our disclosure  controls and procedures  were not effective as of
March  31,  2007 due to the  material  weakness  in our  internal  control  over
financial  reporting,  identified  during the  Company's  assessment of internal
control  over  financial  reporting  as of December 30, 2006 and reported in our
fiscal 2006 Annual  Report on Form 10-K.  We continue  our efforts to  remediate
this  material   weakness   through   ongoing  process   improvements   and  the
implementation of enhanced policies and hiring  additional  personnel,  engaging
third-party tax, financial and financial systems consultants,  improving quality
control  standards,  and  providing  additional  training  and  education to our
financial  reporting  and  accounting  personnel.   Accordingly,  this  material
weakness is not yet fully remediated.  No material weaknesses will be considered
remediated  until the  remedial  procedures  have  operated  for an  appropriate
period,  have been tested,  and management has concluded that they are operating
effectively.

To  compensate  for this material  weakness,  the Company  performed  additional
analysis  and other  procedures  in order to  prepare  the  unaudited  quarterly
consolidated   financial   statements  in  accordance  with  generally  accepted
accounting principles in the United States of America.  Accordingly,  management
believes that the consolidated  financial  statements included in this Quarterly
Report on Form 10-Q fairly  present,  in all material  respects,  our  financial
condition, results of operations and cash flows for the periods presented.

There were no changes during the quarter that have materially  affected,  or are
reasonably  likely to materially  affect,  our internal  control over  financial
reporting.


PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS

     31.1   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002.
     31.2   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002.
     32.1   Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
            2002.


                                       15
<PAGE>

Signatures


          Pursuant to the  requirement of Section 13 or 15 (d) of the Securities
and  Exchange  Act of 1934,  the  Registrant  has duly  caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.


                                      Dated:      May 10, 2007

                                      CACHE, INC.



                                      BY:    /s/ Brian Woolf
                                            ------------------------------------
                                            Brian Woolf
                                            Chairman and Chief
                                            Executive Officer
                                            (Principal Executive
                                            Officer)


                                      BY:   /s/ Margaret Feeney
                                            ------------------------------------
                                            Margaret Feeney
                                            Executive Vice President and
                                            Chief Financial Officer
                                            (Principal Financial and
                                            Accounting Officer)

                                     16
<PAGE>

                                  EXHIBIT 31.1
                                 CERTIFICATION

I, Brian Woolf, certify that:

     1.   I have  reviewed  this  quarterly  report on Form 10-Q of Cache,  Inc.
          (Cache);

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash  flows of Cache as of, and for,  the  periods  presented  in this
          quarterly report;

     4.   Cache's  other   certifying   officer  and  I  are   responsible   for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange Act Rules  13a-15(e) and  15d-15(e))  and internal
          controls  over  financial  reporting (as defined in Exchange Act Rules
          13a-15(f) and 15d-15(f)) for the registrant and have:

          a)   designed such disclosure controls and procedures,  or caused such
               disclosure  controls  and  procedures  to be  designed  under our
               supervision,  to ensure  that  material  information  relating to
               Cache, including its consolidated subsidiaries,  is made known to
               us by others  within  those  entities,  particularly  during  the
               period which this quarterly report is being prepared;

          b)   designed  such  internal  control over  financial  reporting,  or
               caused such  internal  control  over  financial  reporting  to be
               designed under our supervision,  to provide reasonable  assurance
               regarding  the   reliability  of  financial   reporting  and  the
               preparation  of financial  statements  for  external  purposes in
               accordance with generally accepted accounting principles;

          c)   evaluated the  effectiveness of Cache's  disclosure  controls and
               procedures and presented in this quarterly report our conclusions
               about the effectiveness of the disclosure controls and procedures
               as of the end of the  period  covered  by this  quarterly  report
               based on such evaluation;

          d)   disclosed in this report any changes in Cache's  internal control
               over  financial  reporting  that  occurred  during  Cache's first
               quarter that has materially affected,  or is reasonably likely to
               materially  affect,   the  registrant's   internal  control  over
               financial reporting; and

     5.   Cache's other  certifying  officer and I have disclosed,  based on our
          most recent  evaluation of internal control over financial  reporting,
          to  Cache's  auditors  and the audit  committee  of  Cache's  Board of
          Directors;

          a)   all  significant  deficiencies  and  material  weaknesses  in the
               design or operation of internal controls over financial reporting
               which are reasonably  likely to adversely  affect Cache's ability
               to record,  process,  summarize and report financial information;
               and

          b)   any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in Cache's  internal
               controls over financial reporting.


                  May 10, 2007                  By:   /s/ Brian Woolf
                                                     ------------------
                                                Brian Woolf
                                                Chairman and Chief
                                                Executive Officer
                                                (Principal Executive
                                                Officer)

                                       17
<PAGE>

                                  EXHIBIT 31.2
                                 CERTIFICATION

I, Margaret Feeney, certify that:

     1.   I have  reviewed  this  quarterly  report on Form 10-Q of Cache,  Inc.
          (Cache);

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash  flows of Cache as of, and for,  the  periods  presented  in this
          quarterly report;

     4.   Cache's  other   certifying   officer  and  I  are   responsible   for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange Act Rules  13a-15(e) and  15d-15(e))  and internal
          controls  over  financial  reporting (as defined in Exchange Act Rules
          13a-15(f) and 15d-15(f)) for the registrant and have:

          a)   designed such disclosure controls and procedures,  or caused such
               disclosure  controls  and  procedures  to be  designed  under our
               supervision,  to ensure  that  material  information  relating to
               Cache, including its consolidated subsidiaries,  is made known to
               us by others  within  those  entities,  particularly  during  the
               period which this quarterly report is being prepared;

          b)   designed  such  internal  control over  financial  reporting,  or
               caused such  internal  control  over  financial  reporting  to be
               designed under our supervision,  to provide reasonable  assurance
               regarding  the   reliability  of  financial   reporting  and  the
               preparation  of financial  statements  for  external  purposes in
               accordance with generally accepted accounting principles;

          c)   evaluated the  effectiveness of Cache's  disclosure  controls and
               procedures and presented in this quarterly report our conclusions
               about the effectiveness of the disclosure controls and procedures
               as of the end of the  period  covered  by this  quarterly  report
               based on such evaluation;

          d)   disclosed in this report any changes in Cache's  internal control
               over  financial  reporting  that  occurred  during  Cache's first
               quarter that has materially affected,  or is reasonably likely to
               materially  affect,   the  registrant's   internal  control  over
               financial reporting; and

     5.   Cache's other  certifying  officer and I have disclosed,  based on our
          most recent  evaluation of internal control over financial  reporting,
          to  Cache's  auditors  and the audit  committee  of  Cache's  Board of
          Directors;

          a)   all  significant  deficiencies  and  material  weaknesses  in the
               design or operation of internal controls over financial reporting
               which are reasonably  likely to adversely  affect Cache's ability
               to record,  process,  summarize and report financial information;
               and

          b)   any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in Cache's  internal
               controls over financial reporting.

                  May 10, 2007             By:    /s/ Margaret Feeney
                                                 --------------------
                                                 Margaret Feeney
                                                 Executive Vice President and
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)

                                       18
<PAGE>

                                  EXHIBIT 32.1
                           CERTIFICATION PURSUANT TO
                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


Pursuant to, and solely for the purposes of, 18 U.S.C. Section 1350 (Section 906
of the Sarbanes-Oxley Act of 2002), each of the undersigned hereby certifies in
the capacity and on the date indicated below that:

     1.   The Quarterly Report of Cache, Inc. on Form 10-Q for the period ending
          March 31, 2007 as filed with the Securities and Exchange Commission on
          the date hereof (the "Report") fully complies with the requirements of
          Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     2.   The  information  contained  in the  Report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of Cache, Inc.


                  May 10, 2007               BY:  /s/ Brian Woolf
                                                  ------------------
                                                  Brian Woolf
                                                  Chairman and Chief
                                                  Executive Officer
                                                  (Principal Executive
                                                  Officer)


                  May 10, 2007               By:   /s/ Margaret Feeney
                                                  --------------------
                                                  Margaret Feeney
                                                  Executive Vice President and
                                                  Chief Financial Officer
                                                  (Principal Financial and
                                                  Accounting Officer)

                                       19