Stage Stores Reports July Sales; Comparable Store Sales Increase 6.2%.

HOUSTON -- Company Expects to Exceed Upper End of Second Quarter EPS Guidance Range

Stage Stores, Inc. (NYSE:SSI) today reported that total sales for the four-week period ended July 29, 2006 increased 19.3% to $112.6 million from $94.4 million in the prior year four-week period ended July 30, 2005. Comparable store sales increased 6.2% versus an increase of 2.4% last year. Comparable store sales do not include sales generated at the Company's recently acquired B.C. Moore stores.

For the second quarter ended July 29, 2006, the Company reported that its total sales increased 17.0% to $362.1 million from $309.4 million last year, while comparable store sales for the quarter increased 4.5% versus an increase of 7.0% for the prior year period.

Jim Scarborough, Chairman and Chief Executive Officer, commented, "We are very pleased with our same store sales results for July, which were broad based in nature, being driven by solid demand for products across our major merchandise categories. Our top performing businesses for the month included womens special sizes at +14.2%, misses sportswear at +10.7%, cosmetics at +8.3%, home decor at +7.8%, and childrens and junior sportswear at +7.2% each. We are also delighted with the strength of our business during the second quarter, having achieved a 4.5% comparable store sales increase versus our strong 7.0% increase last year."

Mr. Scarborough further commented, "Looking forward, we are excited about our product offerings for the upcoming back-to-school selling season, and we are already encouraged by the pace of our business during July in our back-to school related categories, including childrens, young mens and juniors."

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
           July                6.2            2.4       112.6    94.4
       2nd Quarter             4.5            7.0       362.1   309.4
   Year-To-Date (6 mos)        3.8            5.9       705.6   619.5

Updated Second Quarter EPS Outlook

Commenting on the Company's second quarter EPS outlook, Mr. Scarborough stated, "Based on our preliminary operating results, we currently expect to exceed the high end of our previously provided earning guidance range for the second quarter of $0.17 per diluted share."

Store Activity

During July, the Company relocated its stores in Magnolia, Arkansas and Edinburg, Texas to higher potential locations, and remodeled its stores in Camden, Arkansas and Rockport, Texas.

With regard to its conversion activities, the Company reported that 23 of the former B.C. Moore stores have been successfully converted to Peebles stores, and will be holding their grand openings today. Ten of the converted stores are located in Alabama and 13 are located in Georgia. Going forward, an additional 8 to 11 stores are scheduled to open every two weeks through mid-October.

Mr. Scarborough said, "We are pleased that our store conversion activities have remained on schedule, and we are excited to be opening 23 newly converted Peebles stores today in new markets in Alabama and Georgia. Based upon these openings, our Peebles store count has now increased to 19 in Alabama and to 15 in Georgia. We are confident that our new customers will enjoy our exceptional level of service, great brand names, exciting merchandise selections, and outstanding values in these new Peebles stores."

About Stage Stores

Stage Stores, Inc. brings nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family to small and mid-size towns and communities through 582 stores located in 31 states. The Company operates under the Bealls, Palais Royal and Stage names throughout the South Central states, and under the Peebles name throughout the Midwestern, Southeastern, Mid-Atlantic and New England states. In addition, on February 27, 2006, the Company purchased B.C. Moore & Sons, Inc., and acquired 78 retail locations situated in the Southeast. The Company has completed the conversion of 23 of the acquired stores to its Peebles name and format, and currently plans to convert 46 of the remaining acquired stores to its Peebles name and format, in phases, through mid-October. The remaining 9 non-converted stores will be closed. For more information about Stage Stores, visit the Company's web site at www.stagestores.com.

"Safe Harbor" Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including comments regarding the Company's expected earnings per diluted share for the second quarter and comments regarding the Company's B.C. Moore stores conversion plans. The Company intends forward looking terminology such as "believes", "expects", "may", "will", "should", "could", "anticipates", "plans" or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the "SEC") on April 13, 2006, in the Company's most recent quarterly report on Form 10-Q as filed with the SEC and other factors as may periodically be described in other Company filings with the SEC.