Stage Stores Comps Jump 16.9% in April

Stage Stores, Inc. sales for the month ended April 29, 2006 increased 28.5% to $119.0 million from $92.6 million in the prior year four-week period ended April 30, 2005. Comparable store sales increased 16.9% versus a decrease of 2.5% last year. The Company noted that its comparable store sales do not include the sales generated by the recently acquired B.C. Moore stores.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “The Easter calendar shift, coupled with strong demand for our spring merchandise assortments and generally favorable weather conditions, contributed to our 16.9% comparable store sales increase for April. As strong as our sales results were, we believe they could have been even more favorable had we not experienced start-up problems associated with the implementation of our new merchandising and warehouse management systems at our Peebles division. These learning-curve related issues contributed to our Peebles stores having lower than desired levels of inventory during the quarter.”

Mr. Scarborough continued, “Consistent with our strong overall April sales performance, our major apparel categories achieved impressive comparable store sales increases, including dresses (+28.3%), children's (+27.8%), men's (+22.2%), footwear (+21.9%) and junior sportswear (+19.2%).”

For the first quarter ended April 29, 2006, the Company reported that total sales increased 10.8% to $343.5 million from $310.1 million last year, while this year's comparable store sales grew 3.2% versus an increase of 4.9% for the prior year period.

                             SALES SUMMARY
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                  Comparable Store Sales Trend       Total Sales
                     % Increase (Decrease)         ($ in Millions)
Fiscal Period         2006           2005         2006        2005
----------------  -------------- -------------  ---------- -----------
    February          (0.9)%         3.7%         $93.1      $92.3
     March            (3.9)          12.1         131.4      125.2
     April            16.9           (2.5)        119.0       92.6
  1st Quarter          3.2           4.9          343.5      310.1

Mr. Scarborough further stated, “Based on our preliminary operating results which benefited from our higher than projected sales, and a favorable merchandise mix which produced better than anticipated gross margins, we expect to exceed the high end of our previously provided earnings guidance range for the first quarter of $0.68 per diluted share.”