Stage Stores, Inc. saw total sales for the month of October increase 7.6% to $103.6 million from $96.3 million last year. As expected, comparable store sales decreased 2.5% versus last year's extremely strong post-hurricanes Katrina and Rita increase of 14.9%. The company noted that, other than its Gulf Coast area stores which experienced negative comparable store sales as a result of their tougher comparisons to last year, stores in its other market areas generally achieved comparable store sales increases during the month.

With regard to its major categories of business, the Company reported that its accessories, dresses, home decor, men's and misses sportswear departments all had comparable store sales increases during October.

For the third quarter ended October 28, 2006, the Company reported that total sales increased 15.5% to $353.4 million from $306.0 million last year. Comparable store sales for the quarter increased 4.1% versus an increase of 3.9% last year.

                            SALES SUMMARY
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                           Comparable Store
                              Sales Trend             Total Sales
                         % Increase (Decrease)      ($ in Millions)
                         ---------------------    -------------------
     Fiscal Period         2006       2005          2006      2005
------------------------ ---------- ----------    --------- ---------
      1st Quarter              3.2%       4.9%      $343.5    $310.1
      2nd Quarter              4.5        7.0        362.1     309.4
         August                3.8        1.5        128.8     111.2
       September              11.0       (2.6)       121.0      98.5
        October               (2.5)      14.9        103.6      96.3
      3rd Quarter              4.1        3.9        353.4     306.0
  Year-To-Date (9 mos)         3.9        5.3      1,059.0     925.5

Store Activity

During October, the Company opened new Peebles stores in Albion, NY and St. Johns, MI, and entered its 33rd state by opening a new Peebles store in North Adams, MA. The Company also opened a new Palais Royal store in Humble, TX to replace the one that was closed there last year. In addition, the Company opened its final 9 converted B.C. Moore stores under its Peebles banner on October 12th. These 13 October openings brought the number of stores opened during the third quarter to 82, and increased the number of stores opened year-to-date to 93. The Company plans to complete its fiscal 2006 store-opening program in November with the opening of an additional 15 new stores.

Third Quarter EPS Outlook

On October 24, 2006, the Company issued earnings guidance for the third quarter of $(0.01) – $0.02 per diluted share.