Stage Stores Sees 3.5% Increase in June Comps

Stage Stores, Inc. total sales for the five-week period ended July 1, 2006 increased 16.0% to $133.4 million from $115.0 million in the prior year five-week period ended July 2, 2005. Comparable store sales increased 3.5% on top of an 11.0% increase last year. The Company noted that its comparable store sales do not include the sales generated by the acquired B.C. Moore stores.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “We are pleased to have achieved a 3.5% comparable store sales increase in June versus an extremely tough 11.0% same store sales increase comparison from June 2005. Our solid sales performance was broad based, with most of our major merchandise categories achieving comparable store sales increases during the month. Our cosmetics and women’s special sizes were our top performing categories, generating comparable sales increases of 9.1% and 8.6%, respectively. Other top performing categories included children’s, which was up 7.8%, home decor, which advanced 5.2%, and junior sportswear, which rose 4.8%.”

                             SALES SUMMARY

                    Comparable Store Sales Trend       Total Sales
                       % Increase (Decrease)         ($ in Millions)
                       --------------------          ---------------
   Fiscal Period         2006        2005             2006     2005
   -------------         ----        ----             ----     ----
    1st Quarter          3.2         4.9              343.5    310.1
        May              4.0         7.0              116.1    100.0
        June             3.5        11.0              133.4    115.0
  2nd Qtr-To-Date        3.7         9.1              249.5    215.0
Year-To-Date (5 mos)     3.4         6.6              593.0    525.1

As planned, during June, the Company closed its Peebles store in Harrisonburg, Virginia, and on July 4th, the Company closed its Peebles store in Cullman, Alabama.

For the entire 2006 fiscal year, the Company continues to anticipate opening a total of 108 new stores, or a net of 106 stores after closures, which includes the conversion of 69 of the acquired B.C. Moore stores to Peebles stores. With regard to its conversion activities, the Company reported that it is on track to open the first two groups of converted Peebles stores, or 23 total stores, during the first week of August.