Stage Stores July Comps Dip 1.0%

Stage Stores Inc. reported that comparable store sales for the four-week period ended Aug. 2, 2003 decreased 1.0% as compared to the prior year four-week period ended Aug. 3, 2002, during which comparable store sales increased 2.1%. Total sales increased 2.2% to $70.5 million from $69.0 million in the prior year period.

The Company stated that its dresses, home & gifts, misses sportswear and shoe departments had comparable store sales increases during the month, and its cosmetics and men's departments performed better than the Company average.

For the second quarter ended Aug. 2, 2003, the Company reported that comparable store sales decreased 3.5%, while total sales increased 0.1% to $207.7 million from $207.5 million last year.

Jim Scarborough, chairman, president and chief executive officer, commented, “Although slightly negative, we are pleased with our comparable store sales results for July. Since this is the second consecutive month of improving comparable store sales performance, we are now cautiously optimistic in our outlook for the second half of the year.”

Mr. Scarborough continued, “While we continue to see the greatest challenge in our larger markets, which are the most competitive, a number of store districts, primarily comprised of smaller market stores, produced comparable store sales gains for the period. Additionally, the Texas sales tax holiday weekend, which ran from Aug. 1st through Aug. 3rd, met our sales expectations and was the biggest sales event for us during the month.”

Mr. Scarborough concluded, “On July 24th, we opened new stores in Burkburnett, Texas, Baton Rouge, La., Nogales, Ariz., and Rolla, Mo. We are pleased with the early results in these stores. With these 4 July openings, that brings the total number of stores opened through the first 6 months of the fiscal year to 12. Looking ahead, we are currently planning to open an additional 13 new stores in October and 3 new stores in November, which will be located in the states of Texas, Louisiana and New Mexico.”

                             SALES SUMMARY

                    Comparable Store Sales Trend       Total Sales
                       % Increase (Decrease)         ($ in Millions)
                    ----------------------------     ---------------
   Fiscal Period         2003          2002          2003      2002
   -------------         ----          ----          ----      ----
    1st Quarter          (7.5)%         7.0%        $198.0    $206.7
        May              (6.6)          8.8           65.0      66.9
        June             (3.1)          8.9           72.2      71.6
        July             (1.0)          2.1           70.5      69.0
    2nd Quarter          (3.5)          6.5          207.7     207.5
    Year-To-Date         (5.5)          6.8          405.7     414.2