Stage Stores, Inc. reported that sales for the four week May period ended May 29, 2010 decreased 0.6% to $116 million from $117 million in the prior year four week period ended May 30, 2009. Comparable store sales decreased 2.9% this year versus a decrease of 7.2% last year.

With regard to families of business, footwear and swimwear achieved comparable store sales increases during May, and children's, cosmetics, junior's, men's and young men's performed better than the Company average. The Mid Atlantic, Midwest, Northeast and Southeast regions all had comparable store sales gains during the month. The South Central, which was impacted by continuing softness in Texas, was the Company's weakest region.

 SALES SUMMARY
---------------------------------------------------------
                                                           
                        Comparable Store Sales Trend    Total Sales
                                     %                      (
                            Increase (Decrease)      $ in Millions)
                       -------------------------     ------------                                                          
    Fiscal Period         2010           2009         2010    2009
--------------------   ---------  ----------------   ----  --------
     1st Quarter          (0.6)         (9.0)         340     333
         May              (2.9)         (7.2)         116     117
Year-To-Date (4 Mos)      (1.2)         (8.6)         456     450

Andy Hall, President and Chief Executive Officer, commented, “May, which was up against the toughest second quarter comparison to last year and the loss of Memorial Day, performed in line with our internal expectations. We saw improving sales and traffic trends in the back half of the month and remain cautiously optimistic as we head into June and July with the appropriate inventory levels, merchandise content and easier comparisons.”

Store Activity

No stores were opened during May, while the company closed its flood-damaged store in Ashland City, TN. In July, the company plans to open two new stores and reopen its Yazoo City, MS tornado-damaged store. Stage Stores, Inc. operates 774 stores located in 39 states. The company operates its stores under the five names of Bealls, Goody's, Palais Royal, Peebles and Stage.