Stage Stores, Inc. total sales for the four-week May period beginning May 6, 2007 and ending June 2, 2007 increased 9.8% to $116.6 million from $106.2 million in the prior year four-week period beginning April 30, 2006 and ending May 27, 2006. The Company noted that the reported prior year sales results exclude inventory liquidation sales of $9.9 million generated last May by the acquired B.C. Moore stores prior to their conversion to Peebles stores. Comparable store sales increased 1.7% versus an increase of 4.0% last year.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “Our successful Mother's Day and Memorial Day related sales events, combined with gradually improving weather trends, helped drive sales of our spring and summer goods, resulting in comparable store sales increases across a broad range of our major merchandise categories. Our top three performing categories during May were dresses, cosmetics and plus sizes, which posted comp gains of 9.5%, 4.6% and 4.2%, respectively.”

                            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
        May               1.7           4.0         116.6       116.1
Year-To-Date (4 Mos)      0.5           3.4         474.8       459.6

Mr. Scarborough further stated, “The Texas legislature has just passed a Bill shifting the sales tax holiday weekend from the first weekend in August, which is included in our fiscal July period, to the third weekend in August, which is included in our fiscal August period. This Bill is currently on the Governor's desk, and we fully expect that he will sign it into law. As a result, we are now adjusting our previously provided sales and earnings guidance to reflect this expected calendar shift in this important back-to-school sales event, which we estimate will move $6.0 million in sales, and earnings of $0.02 per diluted share, from the second quarter into the third quarter. Our previously provided sales and earnings guidance for the 2007 fiscal year remains unchanged.”

Fiscal 2007 – Revised Second Quarter Outlook

2nd Quarter 2007:

The Company provided the following revised guidance for the second quarter ending August 4, 2007 to reflect the estimated impact of the expected calendar shift in the Texas sales tax holiday weekend from the second quarter to the third quarter:

                               2Q 2007 OUTLOOK       2Q 2006 ACTUAL
                             -------------------- --------------------
Sales ($mm)                   $371.0  -  $379.0         $362.1

Net Income ($mm)              $10.4   -  $11.6           $3.9

Diluted EPS                   $0.23   -  $0.26           $0.09

Diluted Shares (m)                 44,666               43,542

Store Activity

The Company expects to open 3 new stores during the second quarter, and a total of 45 new stores during 2007.