Stage Stores, Inc. reported that total sales for October increased 17.9% to $96.3 million from $81.7 million in the prior year period. Comparable store sales increased 14.9% versus an increase of 1.8% last year.

For the third quarter ended October 29, 2005, the Company reported that total sales increased 7.3% to $306.0 million from $285.3 million last year. Comparable store sales for the quarter increased 3.9% versus an increase of 4.3% last year. The Company noted that its last year third quarter comparable store sales results benefited from a calendar shift in the Texas sales tax holiday weekend from July in 2003, to August in 2004. 

SALES SUMMARY 

                       Comparable Store           Total Sales
                          Sales Trend
                     % Increase (Decrease)       ($ in Millions)
                     ---------------------       ---------------   
    Fiscal Period        2005       2004         2005       2004
----------------------------------------------------------------------
     1st Quarter           4.9%       4.5%        $310.1    $289.6
     2nd Quarter           7.0       (3.2)         309.4     279.9
       August              1.5        8.1          111.2     105.7
      September           (2.6)       2.5           98.5      97.9
       October            14.9        1.8           96.3      81.7
     3rd Quarter           3.9        4.3          306.0     285.3
Year-To-Date (9 mos)       5.3        1.8          925.5     854.8

Jim Scarborough, Chairman, President and Chief Executive Officer, commented, “We are very pleased with our strong 14.9% comparable store sales increase for October, which represents our largest monthly comp store sales gain so far this year. It is gratifying to note that our sales performance was broad based in nature, with most of our major merchandise categories achieving comparable store sales increases during the month. In fact, five of our merchandise divisions achieved comparable store sales growth in excess of 20%, namely young men's (+23.9%), children's (+23.6%), special sizes (+22.4%), junior sportswear (+21.5%) and cosmetics (+21.1%).”

Mr. Scarborough continued, “Our October sales performance benefited from generally cooler and more seasonable weather, combined with strong customer response to our fall merchandise assortments, and a significant sales rebound in the market areas that were most impacted by hurricanes Katrina and Rita in September.”

Mr. Scarborough concluded, “Based on our preliminary operating results for the third quarter, we expect to meet or exceed the upper end of our previously provided earnings guidance range for the period of $0.28 per diluted share. Looking forward, we believe that we are well positioned for the fourth quarter, with great looking merchandise selections for the upcoming holiday shopping season.”