Stage Stores Comps Rise 8.1% in August

Stage Stores' total sales for the four-week period
ended Aug. 28, 2004 increased 47.8% to $105.7 million from $71.5 million in the prior year four-week period ended Aug. 30, 2003. Comparable store sales increased 8.1% versus a decrease of 5.7% last year. The Company noted that total sales include sales for the Peebles
stores in the current year's results only, while comparable store sales include comparable store sales for the Peebles stores in both years. The Company also noted that the current year's comparable store
sales benefited from the calendar shift in the Texas sales tax holiday
weekend from the July period last year to the August period this year.

The Company further reported that almost all of its categories of
business had comparable store sales increases during August, with the
only major category exceptions being cosmetics and home & gifts.
Leading the way with double digit comparable store sales increases
during the month were children's (+16.3%), footwear (+13.4%), special
sizes (+11.4%), men's (+10.6%) and dresses (+10.2%).

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

              Comparable Store Sales Trend       Total Sales
                 % Increase (Decrease)         ($ in Millions)
                 ---------------------         ---------------
Fiscal Period      2004        2003(a)       2004           2003
-------------      ----        -------       ----           ----
 1st Quarter       4.5%         (6.8)%      $289.7         $198.0
 2nd Quarter      (3.2)         (2.4)        279.9          207.7
    August         8.1          (5.7)        105.7           71.5
 Year-To-Date      1.7          (4.7)        675.3          477.2

Store Activity

On Aug. 14, the Company closed its Peebles store in Bowie, Md. On
Sept. 16, the Company plans to open a new Peebles store in Bradford,
Pa.