Stage Stores Reports December Sales; Comparable Store Sales Increase 7.3%

Stage Stores, Inc. (Nasdaq:STGS) today reported that
total sales for the five-week period ended December 31, 2005 increased
9.2%, to $241.9 million versus $221.5 million in last year's five-week
period ended January 1, 2005. Comparable store sales increased 7.3%
versus an increase of 3.1% last year.
   Jim Scarborough, Chairman, President and Chief Executive Officer,
commented, "We are very pleased with our strong December sales
performance. Our comparable store sales were up 7.3%, with all of our
major merchandise categories achieving comparable store sales
increases during the month. Our accessories, young men's and
children's departments led the way with double-digit comparable store
sales increases of 12.0%, 10.5% and 10.3%, respectively."
   Mr. Scarborough continued, "Our December sales performance
benefited from solid customer demand for our merchandise assortments,
as well as strong comparable store sales gains in Louisiana and
Mississippi, where our customers are still recovering from the
devastating impact of hurricanes Katrina and Rita. Additionally, our
gift card sales during December, which are not included in our sales
results until they are redeemed, were up approximately 16.5% over last
year, reflecting the growing trend of giving gift cards as presents
during the holiday season."
-0-
*T
                             SALES SUMMARY

                     Comparable Store Sales Trend       Total Sales
                        % Increase (Decrease)         ($ in Millions)
  Fiscal Period             2005       2004            2005     2004
----------------------------------------------------------------------
   1st Quarter              4.9%       4.5%           $310.1   $289.6
   2nd Quarter              7.0       (3.2)            309.4    279.9
   3rd Quarter              3.9        4.3             306.0    285.3
    November                4.6        6.0             110.6    103.8
    December                7.3        3.1             241.9    221.5
 4th Qtr-To-Date            6.4        4.0             352.5    325.3
Year-To-Date (11 mos)       5.6        2.4           1,278.0  1,180.1
*T

   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 554 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 Mid-Atlantic, Southeastern and Midwestern states.
For more information about Stage Stores, visit the Company's web site
at www.stagestores.com.