Stage Stores, Inc. saw net sales for the month of August decrease 4.1% to $123.5 million from $128.8 million for the same month last year. Prior year sales results include inventory liquidation sales of $8.7 million generated by the acquired B.C. Moore stores prior to their conversion to Peebles stores. Comparable store sales for the month decreased 2.6% versus an increase of 3.8% last year.

With regard to its major merchandise categories, the company reported that its accessories, cosmetics, dresses and plus sizes departments all achieved comparable store sales increases during August.

Jim Scarborough, chairman and CEO, commented, “We achieved better than projected August comparable store sales results due to strong back-to-school sales during the last ten days of the month, related to the later start date for Texas schools this year versus last year. While we are pleased to have exceeded our comparable store sales expectations for August, it's still too early to tell if we will see the same positive sales trends develop for September and October; therefore, we remain conservative in our overall sales and earnings outlook for the remainder of the third quarter.”

                           SALES SUMMARY

Comparable Store Sales Trend Total Sales
% Increase (Decrease) ($ in Millions)
—————————- —————

Fiscal Period 2007 2006 2007 2006
——————– ————— ———— —— ——
1st Quarter 0.1% 3.2% $358.2 $343.5
2nd Quarter 0.5 4.5 359.2 362.1
August (2.6) 3.8 123.5 128.8
Year-To-Date (7 Mos) (0.1) 3.8 840.9 834.4

Store Activity

During August, the company opened a new Stage store in Raceland, Louisiana. Through the first seven months of the 2007 fiscal year, the company has opened fifteen new stores, and plans to open an additional nine new stores in September, eleven new stores in October and twelve new stores in November.