NEWS RELEASE

CONTACT:

Bob Aronson

Vice President, Investor Relations

800-579-2302

(baronson@stagestores.com)

FOR IMMEDIATE RELEASE

Stage Stores Reports Third Quarter Results

Announces New $50 Million Stock Repurchase Program

Provides Updated Fourth Quarter and Full Year Guidance

HOUSTON, TX, November 20, 2007 -- Stage Stores, Inc. (NYSE: SSI) today reported net income for the third quarter ended November 3, 2007 of $2.4 million, or $0.06 per diluted share, compared to $2.8 million, or $0.06 per diluted share, for the prior year third quarter ended October 28, 2006. Last year’s third quarter results include various non-comparable income and expense items that net to a charge of $(0.06) per diluted share.

As previously reported by the Company, sales for the third quarter were $355.1 million versus sales of $353.4 million last year. Prior year sales results include inventory liquidation sales of $11.5 million generated by the acquired B.C. Moore stores prior to their conversion to Peebles stores. Comparable store sales for the third quarter decreased 1.0% versus an increase of 4.1% in the same period last year.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “We achieved sales and earnings that were in line with our expectations, despite the challenges presented by the unseasonably warm weather throughout much of the third quarter. One of the consequences of the persistently warm weather was a reduction in the demand for our higher priced fall and winter goods, which resulted in an unfavorable merchandise sales mix for the quarter. We were, however, able to mitigate the negative impact of our unfavorable sales mix on our gross margins through tight control of our operating expenses.

“Looking forward, we feel good about our merchandise offerings and we believe that our inventories are at appropriate levels as we enter the holiday shopping period. Given the current uncertainties in the economic environment, we will continue to prudently manage our inventory levels and our operating expenses,” Mr. Scarborough concluded.

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Stage Stores Reports

Third Quarter Results

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The Company reported that it opened 21 new stores during the third quarter and entered the new states of Wisconsin and Utah. The Company noted that 17 of the new stores were opened in market areas of less than 50,000 people. These less competitive and under-served markets continue to be the primary focus of the Company’s new store growth plans. The Company also relocated 4 stores during the quarter.

With regard to its major merchandise categories, cosmetics, plus sizes and dresses were the Company’s best performing businesses during the quarter with comparable store sales increases of 10.8%, 9.0% and 5.2%, respectively. The Company continued its roll-out of Estee Lauder and Clinique counters during the quarter, as it completed the installation of 20 new Estee Lauder and 20 new Clinique counters, ending the period with 116 Estee Lauder and 107 Clinique counters.

Total sales for the nine-month period ended November 3, 2007 rose 1.3% to $1,072.6 million from $1,059.0 million for the prior year nine-month period ended October 28, 2006. Prior year sales results include inventory liquidation sales of $62.1 million generated by the acquired B.C. Moore stores prior to their conversion to Peebles stores. Net income for the nine-month period was $21.4 million, or $0.49 per diluted share, compared to $15.7 million, or $0.36 per diluted share, last year. The Company noted that last year’s nine months results included various non-comparable income and expense items that netted to a charge of $(0.11) per diluted share, while this year’s nine month results includes a non-comparable income item of $0.04 per diluted share.

NEW $50 MILLION STOCK REPURCHASE PROGRAM

The Company also announced today that its Board of Directors approved a new Stock Repurchase Program, authorizing the repurchase of up to $50 million of the Company’s outstanding common stock. The authorization permits the Company to affect the repurchases from time to time in the open market or through privately negotiated transactions including, but not limited to, accelerated share repurchases, as deemed appropriate by the Company.

Commenting on the Company’s new Stock Repurchase Program, Mr. Scarborough stated, "We are very pleased with our Board's decision. This new $50 million stock repurchase program underscores our strong belief in the long term prospects of our company, as well as our ongoing commitment to enhancing shareholder value."

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Stage Stores Reports

Third Quarter Results

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Since the specific timing and amount of repurchases will vary based on market conditions and other factors, there can be no assurance as to the amount, timing or prices of these stock repurchases. Additionally, this stock repurchase program may be modified, extended or terminated by the Company’s Board of Directors at any time.

FISCAL 2007 - UPDATED FOURTH QUARTER AND FULL YEAR GUIDANCE

4^th Quarter 2007:

The Company provided the following updated guidance for the fourth quarter ending February 2, 2008:

	4Q 2007 OUTLOOK			4Q 2006 ACTUAL
Sales ($mm)	$483.0	-	$495.0	$491.2

Net Income ($mm)	$33.8	-	$36.1	$39.6

Diluted EPS	$0.80	-	$0.85	$0.88

Diluted Shares (m)	42,304			44,954

In issuing its fourth quarter guidance, the Company provided the following additional information:

Comparable store sales assumption – flat (13 weeks vs 13 weeks)

4Q 2006 results include several non-comparable income items that total $0.10 per diluted share, including income related to reimbursements received by the Company for its 2005 hurricane related losses, income produced in the fourteenth week of the quarter, and income associated with the reduction of the liability for old gift cards and merchandise credits issued to customers, which the Company believed the likelihood of redemption was remote.

4Q 2007 outlook does not reflect any benefits from the Company’s new $50 million Stock Repurchase Program.

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Stage Stores Reports

Third Quarter Results

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FY 2007:

The Company provided the following updated guidance for the 2007 fiscal year ending February 2, 2008 to reflect actual nine month results:

	FY 2007 OUTLOOK			FY 2006 ACTUAL
Sales ($mm)	$1,555.6	-	$1,567.6	$1,550.2

Net Income ($mm)	$55.2	-	$57.5	$55.3

Diluted EPS	$1.28	-	$1.33	$1.25

Diluted Shares (m)	43,182			44,111

In updating its fiscal 2007 full year guidance, the Company provided the following additional information:

Comparable store sales assumption – flat (52 weeks vs 52 weeks)

FY 2006 sales include inventory liquidation sales of $62.1 million generated by the acquired B.C. Moore stores prior to their conversion to Peebles stores.

FY 2007 outlook includes a non-comparable gain of $0.04 per diluted share related to the March 2004 sale of the Peebles private label credit card portfolio.

FY 2007 outlook does not reflect any benefits from the Company’s new $50 million Stock Repurchase Program.

Conference Call Information

The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss its third quarter results. Interested parties can participate in the Company’s conference call by dialing 703-639-1418. Alternatively, interested parties can listen to a live webcast of the conference call by logging on to the Company's web site at www.stagestores.com and then clicking on Investor Relations, then Webcasts, then the webcast link. A replay of the conference call will be available online until midnight on Friday, November 30, 2007.

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Stage Stores Reports

Third Quarter Results

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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 699 stores located in 35 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. For more information about Stage Stores, visit the Company’s web site at www.stagestores.com.

Caution Concerning Forward-Looking Statements

This document contains “forward-looking statements”. Forward-looking statements reflect our expectations regarding future events and operating performance and often contain words such as "believe", "expect", "may", "will", "should", "could", "anticipate", "plan" or similar words. In this document, forward–looking statements include comments regarding the Company’s outlook and expectations for the fourth quarter of the 2007 fiscal year and full 2007 fiscal year. Forward looking statements are subject to a number of risks and uncertainties which could cause 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 our Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the "SEC") on April 3, 2007 and other factors as may periodically be described in our other filings with the SEC. Forward-looking statements speak only as of the date of this document. We do not undertake to update our forward-looking statements.

(Tables to Follow)

Stage Stores, Inc.
Condensed Consolidated Statements of Income
(in thousands, except earnings per share)
(Unaudited)

	Thirteen Weeks Ended
	November 3, 2007					October 28, 2006
	Amount		% to Sales			Amount		% to Sales

Net sales	$	355,147		100.0	%	$	353,348		100.0	%

Cost of sales and related buying, occupancy and distribution expenses		260,898		73.5	%		253,034		71.6	%
Gross profit		94,249		26.5	%		100,314		28.4	%
Selling, general and administrative expenses		86,651		24.4	%		90,477		25.6	%
Store opening costs		2,459		0.7	%		4,034		1.1	%
Interest expense, net of income of $0 and $29, respectively		1,210		0.3	%		1,344		0.4	%
Income before income tax		3,929		1.1	%		4,459		1.3	%
Income tax expense		1,483		0.4	%		1,661		0.5	%
Net income	$	2,446		0.7	%	$	2,798		0.8	%

Basic and diluted earnings per share data:
Basic earnings per share	$	0.06				$	0.07
Basic weighted average shares outstanding		41,400					42,511

Diluted earnings per share	$	0.06				$	0.06
Diluted weighted average shares outstanding		42,258					44,384

Stage Stores, Inc.
Condensed Consolidated Statements of Income
(in thousands, except earnings per share)
(Unaudited)

	Thirty-Nine Weeks Ended
	November 3, 2007					October 28, 2006
	Amount		% to Sales			Amount		% to Sales

Net sales	$	1,072,596		100.0	%	$	1,058,993		100.0	%
Cost of sales and related buying, occupancy and distribution expenses		774,535		72.2	%		763,435		72.1	%
Gross profit		298,061		27.8	%		295,558		27.9	%
Selling, general and administrative expenses		256,889		24.0	%		260,312		24.6	%
Store opening costs		3,700		0.3	%		6,770		0.6	%
Interest expense, net of income of $0 and $130, respectively		3,048		0.3	%		3,463		0.3	%
Income before income tax		34,424		3.2	%		25,013		2.4	%
Income tax expense		12,995		1.2	%		9,317		0.9	%
Net income	$	21,429		2.0	%	$	15,696		1.5	%

Basic and diluted earnings per share data:
Basic earnings per share	$	0.50				$	0.38
Basic weighted average shares outstanding		42,438					40,808

Diluted earnings per share	$	0.49				$	0.36
Diluted weighted average shares outstanding		43,473					43,809

Stage Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par values)
(Unaudited)

	November 3, 2007			February 3, 2007

ASSETS
Cash and cash equivalents	$	17,889		$	15,866
Merchandise inventories, net		441,068			332,763
Current deferred taxes		23,135			23,231
Prepaid expenses and other current assets		36,699			42,512
Total current assets		518,791			414,372

Property, equipment and leasehold improvements, net		302,700			278,839
Goodwill		95,374			95,374
Intangible asset		14,910			14,910
Other non-current assets, net		29,730			21,491
Total assets	$	961,505		$	824,986

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	155,352		$	85,477
Income taxes payable		-			-
Current portion of debt obligations		229			86
Accrued expenses and other current liabilities		68,271			75,141
Total current liabilities		223,852			160,704

Debt obligations		107,642			16,528
Other long-term liabilities		91,147			76,346
Total liabilities		422,641			253,578

Commitments and contingencies

Common stock, par value $0.01, 100,000 and 64,603 shares authorized, 55,095 and 54,343 shares issued, respectively		551			543
Additional paid-in capital		477,686			462,745
Less treasury stock - at cost, 13,691 and 10,708 shares, respectively		(227,634	)		(165,094	)
Accumulated other comprehensive loss		(1,908	)		(1,908	)
Retained earnings		290,169			275,122
Stockholders' equity		538,864			571,408
Total liabilities and stockholders' equity	$	961,505		$	824,986

Stage Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Thirty-Nine Weeks Ended
	November 3, 2007			October 28, 2006
Cash flows from operating activities:
Net income	$	21,429		$	15,696
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		35,901			34,136
Gain on insurance proceeds related to property, equipment and leashold improvements		-			(1,756	)
Deferred income taxes		(963	)		(9,510	)
Stock-based compensation tax benefits		3,853			6,178
Stock-based compensation expense		5,453			3,441
Amortization of debt issue costs		188			335
Excess tax benefits from stock based compensation		(3,794	)		(6,009	)
Construction allowances from landlords		19,678			6,905
Proceeds from sale of private label credit card portfolio, net		-			4,436
Other changes in operating assets and liabilities:
Increase in merchandise inventories		(108,305	)		(129,683	)
(Increase) Decrease in other assets		(371	)		8,018
Increase in accounts payable and other liabilities		61,502			45,778
Total adjustments		13,142			(37,731	)
Net cash provided by (used in) operating activities		34,571			(22,035	)

Cash flows from investing activities:
Additions to property, equipment and leasehold improvements		(64,093	)		(51,410	)
Acquisition of B.C. Moore, net of cash acquired		-			(35,622	)
Proceeds from insurance proceeds related to property, equipment and leashold improvements		-			1,756
Proceeds from sale of property and equipment		31			269
Net cash used in investing activities		(64,062	)		(85,007	)

Cash flows from financing activities:
Proceeds from (payments on):
Borrowings under revolving credit facility, net		89,510			74,339
Repurchases of common stock		(62,540	)		(17,695	)
Finance lease obligations		1,850			-
Debt obligations		(103	)		(55	)
Debt issuance costs		(258	)		-
Exercise of stock options, warrants and stock appreciation rights		5,643			36,342
Excess tax benefits from stock based compensation		3,794			6,009
Cash dividends		(6,382	)		(3,455	)
Net cash provided by financing activities		31,514			95,485
Net increase (decrease) in cash and cash equivalents		2,023			(11,557	)

Cash and cash equivalents:
Beginning of period		15,866			33,683
End of period	$	17,889		$	22,126

NEVADA (State or other jurisdiction of incorporation)	91-1826900 (I.R.S. Employer Identification No.)

10201 Main Street, Houston, Texas (Address of principal executive offices)	77025 (Zip Code)

	STAGE STORES, INC.

November 21, 2007	/s/ Edward J. Record
(Date)	Edward J. Record
	Executive Vice President and
	Chief Financial Officer