Stage Stores, Inc. reported that total sales for the four-week period ended April 30, 2005, increased 1.0% to $92.6 million from $91.7 million in the prior year four-week period ended May 1, 2004. Comparable store sales, which reflect the impact of the Easter calendar shift, were better than expected, decreasing only 2.5% versus an increase of 0.3% last year.

Jim Scarborough, Chairman, President and Chief Executive Officer, commented, “We are pleased with our comparable store sales results for April, which exceeded our financial plans for the month. While clearly affected by the Easter calendar shift, our April sales benefited from solid demand for our spring merchandise assortments.”

Mr. Scarborough continued, “It is especially gratifying that our key merchandising initiatives, including our efforts to increase the sales per square foot at our Peebles stores through higher inventory levels, are working well. Additionally, a number of our merchandise categories achieved comparable store sales increases during the month, including our petites and plus size departments, which posted a combined comparable store sales increase of 13.3%, as well as our misses sportswear and accessories divisions, which each had a comparable store sales increase of 8.5%.” 

                             SALES SUMMARY
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                            Comparable Store           Total Sales
                               Sales Trend
                          % Increase (Decrease)      ($ in Millions)
                          ---------------------   --------------------
      Fiscal Period         2005         2004       2005       2004
---------------------     ---------------------   --------------------
        February             3.7%        8.0%       $92.3      $87.8
          March             12.1         5.5        125.1      110.2
          April             (2.5)        0.3         92.6       91.7
       1st Quarter           4.9         4.5        310.1(a)   289.7

(a) Total does not foot due to rounding.

For the first quarter, the Company reported that total sales increased 7.0% to $310.1 million from $289.7 million last year, while this year's comparable store sales increased 4.9% compared to an increase of 4.5% for last year's first quarter.

Mr. Scarborough further stated, “This was a solid quarter for our company. Our comparable store sales were up a strong 4.9% and our total sales, at $310.1 million, exceeded the high end of our previously provided sales outlook by $5.1 million. As a result, we are raising the high end of our previously provided earnings outlook for the quarter, and are now projecting that our diluted earnings per share will be in the range of $1.03 to $1.05 compared to our prior guidance range for the quarter of $0.96 to $1.03. Concurrently, we are also raising our annual earnings outlook for our 2005 fiscal year to be in the range of $2.78 to $2.90 per diluted share versus our previously provided guidance range of $2.71 to $2.88.”

The Company also reported that it opened six new stores during April. The six new stores, which were all Peebles stores, were opened in Brattleboro, Vermont, Marietta, Ohio, Princeton and Central City, Kentucky, Huntington, Indiana and Yazoo City, Mississippi.

For the first quarter, a total of ten new stores were opened and two stores were closed. As a result of the eight net new stores added during the period, the Company ended the quarter with 537 stores. The Company currently anticipates that, during the second quarter, it will open five to seven new stores and close one store.