Stage Stores Dec Comps Decreased 5.8%

Stage Stores, Inc. reported that comparable store sales for the five-week period ended January 4, 2003 decreased 5.8% compared to the prior year five-week period ended January 5, 2002. Total sales decreased 3.4% to $144.3 million from $149.4 million in the prior year period. For the combined nine-week November and December holiday sales period, comparable store sales decreased by 7.0%.

Commenting on December’s sales performance, Jim Scarborough, Chairman, President and Chief Executive Officer, stated, “We are clearly disappointed with our sales results for the month given our encouraging start over the Thanksgiving weekend. This year’s holiday sales period was one of the most difficult in my 31 years of retailing. Our results reflect the current challenging retail and economic environment and weak consumer confidence. Also, the lack of hot, must-have apparel items during the period further reduced consumers enthusiasm. However, despite the overall decline in our comparable store sales, we did achieve positive sales performances in our accessories and home & gifts departments, and misses sportswear was comparable with last year. In addition, our small and mid-size market stores continued to perform better than our large market stores, which further validates the benefits of our small market focus. Finally, it should be noted that we were up against a significant calendar adjusted comparable store sales increase of 18.1% for the same period last year.”

                            SALES SUMMARY
     ---------------------------------------------------------------

                     Comparable Store Sales Trend      Total Sales  
                              % Increase             ($ in Millions)
     Fiscal Period   2002       2001(a)    2001(b)     2002   2001
    ---------------  -----------------------------   ---------------
                             (Calendar    (Fiscal    (Fiscal (Fiscal
                            Adj. Basis)   Basis)     Basis)  Basis)
      1st Quarter      7.0%        17.1%     18.4%   $206.7  $195.5
      2nd Quarter      6.5         16.6      23.9     207.5   195.5
      3rd Quarter      2.9         14.6       8.8     204.4   195.8
       November       (9.4)         9.9      25.5      71.4    76.9
       December       (5.8)        18.1       7.6     144.3   149.4
    4th Qtr-To-Date   (7.0)        15.2      13.1     215.7   226.3
     Year-To-Date      2.0         15.9      15.7     834.3   813.1
                                                  
(a) The 2001 Calendar Adjusted Basis column compares the forty-eight
    week period starting on February 4, 2001 to the forty-eight week
    period starting on February 6, 2000.

(b) The 2001 Fiscal Basis column compares the forty-eight week period
    starting on February 4, 2001 to the forty-eight week period
    starting on January 30, 2000.