Exhibit 99

NEWS RELEASE

CONTACT:

Bob Aronson

Vice President, Investor Relations

800-579-2302

(baronson@stagestores.com)

FOR IMMEDIATE RELEASE

Stage Stores Reports 13.6% Increase in Second Quarter Net Income

Announces $25 Million Stock Repurchase Program

HOUSTON, TX, August 19, 2010 -- Stage Stores, Inc. (NYSE: SSI) today reported that net income for the second quarter ended July 31, 2010 increased 13.6% to $10.3 million from $9.1 million for the prior year second quarter ended August 1, 2009.  Diluted earnings per share were $0.27 this year versus $0.24 last year.

Net income for the six months ended July 31, 2010 increased 53.0% to $12.5 million from $8.2 million for prior year period.  Diluted earnings per share were $0.32 this year versus $0.21 last year.

The Company also announced today that its Board of Directors has approved a new Stock Repurchase Program, which authorizes the Company to repurchase up to $25 million of its outstanding common stock.

Commenting on the Company’s second quarter results, Andy Hall, President and Chief Executive Officer, stated, “We are pleased to report a 13.6% increase in net income for the second quarter.  Inventories were well managed throughout the quarter, and drove a better-than-expected 90 basis point improvement in our gross profit rate.”

Mr. Hall continued, “Operationally during the first six months of the year, we increased the number of Goody’s stores to 38 with the opening of eighteen new Goody’s stores and the rebranding of five non-Goody’s stores.  We added six Estee Lauder and fifteen Clinique counters during the period, which raised the number of counters to 174 and 167, respectively.  We completed the pilot for our markdown optimization tool and are beginning its roll out.”

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Stage Stores Reports

13.6% Increase in Second

Quarter Net Income

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Commenting on the Company’s new Stock Repurchase Program, Mr. Hall stated, “We are very pleased to be in a fiscal position to execute a $25 million stock repurchase program.  We believe that the current market value of our shares does not reflect the underlying value of the company and the repurchase program represents an attractive opportunity to deploy capital in a way that will benefit shareholders.  Our strong balance sheet, cash flows and business model bode well for the long term prospects of our company.”

Third Quarter, Fourth Quarter and Updated Fiscal 2010 Full Year Guidance

For the third and fourth quarters, the Company anticipates that comparable store sales will be in a range from flat to a 2.0% increase.  For the fiscal year, the Company is projecting comparable store sales to be in a range of down 0.5% to an increase of 0.5%.  The Company noted that the following guidance does not include the accretive impact on EPS from its new $25 million Stock Repurchase Program.

3rd Quarter 2010:

	3Q 2010 OUTLOOK			3Q 2009
Sales ($mm)	$333	-	$340	$325
Diluted EPS	$(0.18)	-	$(0.15)	$(0.19)
Diluted Shares (m)	38,250			38,084

4th Quarter 2010:

	4Q 2010 OUTLOOK			4Q 2009
Sales ($mm)	$444	-	$452	$432
Diluted EPS	$0.76	-	$0.79	$0.72
Diluted Shares (m)	38,500			38,446

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Stage Stores Reports

13.6% Increase in Second

Quarter Net Income

Page – 3

FY 2010:

	FY 2010 OUTLOOK			FY 2009
Sales ($mm)	$1,462	-	$1,477	$1,432
Diluted EPS	$0.90	-	$0.96	$0.75
Diluted Shares (m)	38,590			38,413

Details of $25 million Stock Repurchase Program

Under the Company’s new $25 million Stock Repurchase Program, the Company may repurchase its outstanding common stock from time to time up to the approved amount, either on the open market or through privately negotiated transactions.  The Stock Repurchase Program will be financed by the Company’s existing cash, cash flow and other liquidity sources, as appropriate.

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.

Conference Call Information

The Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the items contained in this news release.  Interested parties can participate in the Company’s conference call by dialing 703-639-1414.  Alternatively, interested parties can listen to a live webcast of the conference call by logging on to the Company's web site at www.stagestoresinc.com and then clicking on Webcasts, then the webcast link.  A replay of the conference call will be available online until midnight on Friday, August 27, 2010.

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 777 stores located in 39 states.  The Company operates its stores under the five names of Bealls, Goody’s, Palais Royal, Peebles and Stage.  For more information about Stage Stores, visit the Company’s web site at www.stagestoresinc.com.

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Stage Stores Reports

13.6% Increase in Second

Quarter Net Income

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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 sales and EPS outlooks for the third and fourth quarters of the 2010 fiscal year, as well as for the entire 2010 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 March 30, 2010, 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 Operations
(in thousands, except earnings per share)
(Unaudited)
	Thirteen Weeks Ended
	July 31, 2010					August 1, 2009
	Amount		% to Sales (1)			Amount		% to Sales (1)
Net sales	$	345,019		100.0	%	$	341,737		100.0	%
Cost of sales and related buying, occupancy
and distribution expenses		240,869		69.8	%		241,540		70.7	%
Gross profit		104,150		30.2	%		100,197		29.3	%
Selling, general and administrative expenses		86,355		25.0	%		83,854		24.5	%
Store opening costs		379		0.1	%		465		0.1	%
Interest expense, net of income of $21 and $15, respectively		997		0.3	%		1,141		0.3	%
Income before income tax		16,419		4.8	%		14,737		4.3	%
Income tax expense		6,092		1.8	%		5644		1.7	%
Net income	$	10,327		3.0	%	$	9,093		2.7	%
Basic and diluted earnings per share data:
Basic earnings per share	$	0.27				$	0.24
Basic weighted average shares outstanding		38,359					38,070
Diluted earnings per share	$	0.27				$	0.24
Diluted weighted average shares outstanding		38,587					38,467
(1) Percentages may not foot due to rounding.

Stage Stores, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except earnings per share)
(Unaudited)
	Twenty-Six Weeks Ended
	July 31, 2010					August 1, 2009
	Amount		% to Sales (1)			Amount		% to Sales (1)
Net sales	$	685,061		100.0	%	$	675,303		100.0	%
Cost of sales and related buying, occupancy
and distribution expenses		491,016		71.7	%		490,623		72.7	%
Gross profit		194,045		28.3	%		184,680		27.3	%
Selling, general and administrative expenses		170,204		24.8	%		167,460		24.8	%
Store opening costs		1,835		0.3	%		1,651		0.2	%
Interest expense, net of income of $50 and $76, respectively		2,042		0.3	%		2,299		0.3	%
Income before income tax		19,964		2.9	%		13,270		2.0	%
Income tax expense		7,439		1.1	%		5,082		0.8	%
Net income	$	12,525		1.8	%	$	8,188		1.2	%
Basic and diluted earnings per share data:
Basic earnings per share	$	0.33				$	0.22
Basic weighted average shares outstanding		38,316					38,000
Diluted earnings per share	$	0.32				$	0.21
Diluted weighted average shares outstanding		38,680					38,350
(1) Percentages may not foot due to rounding.

Stage Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(Unaudited)
	July 31, 2010			January 30, 2010
ASSETS
Cash and cash equivalents	$	83,026		$	93,714
Merchandise inventories, net		338,899			306,360
Prepaid expenses and other current assets		30,471			27,095
Total current assets		452,396			427,169
Property, equipment and leasehold improvements, net		327,870			342,001
Intangible asset		14,910			14,910
Other non-current assets, net		16,990			16,351
Total assets	$	812,166		$	800,431
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	115,012		$	100,602
Current portion of debt obligations		13,122			12,726
Accrued expenses and other current liabilities		63,895			69,688
Total current liabilities		192,029			183,016
Long-term debt obligations		31,491			38,492
Other long-term liabilities		101,609			102,877
Total liabilities		325,129			324,385
Commitments and contingencies
Common stock, par value $0.01, 100,000 shares authorized,
56,820 and 56,080 shares issued, respectively		568			561
Additional paid-in capital		510,918			501,800
Less treasury stock - at cost, 18,554 and 18,071 shares, respectively		(295,035	)		(288,079	)
Accumulated other comprehensive loss		(5,765	)		(5,897	)
Retained earnings		276,351			267,661
Total stockholders' equity		487,037			476,046
Total liabilities and stockholders' equity	$	812,166		$	800,431

Stage Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
	Twenty-Six Weeks Ended
	July 31, 2010			August 1, 2009
Cash flows from operating activities:
Net income	$	12,525		$	8,188
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment of long-lived assets		31,447			30,529
Deferred income taxes		(216	)		305
Tax benefits (deficiency) from stock-based compensation		1,103			(373	)
Stock-based compensation expense		2,958			3,294
Amortization of debt issue costs		149			145
Excess tax benefits from stock-based compensation		(1,913	)		(124	)
Deferred compensation obligation		65			71
Amortization of employee benefit related costs		213			260
Construction allowances from landlords		3,924			2,005
Changes in operating assets and liabilities:
(Increase) decrease in merchandise inventories		(32,539	)		4,479
(Increase) decrease in other assets		(3,697	)		1,703
Increase in accounts payable and other liabilities		2,970			15,545
Total adjustments		4,464			57,839
Net cash provided by operating activities		16,989			66,027
Cash flows from investing activities:
Additions to property, equipment and leasehold improvements		(17,193	)		(24,304	)
Proceeds from insurance related to property, equipment             and leasehold improvements		-			578
Net cash used in investing activities		(17,193	)		(23,726	)
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings		-			133,225
Payments of revolving credit facility borrowings		-			(133,225	)
Proceeds from long-term debt obligations		-			1,585
Payments of long-term debt obligations		(6,605	)		(5,946	)
Repurchases of common stock		(6,956	)		(240	)
Proceeds from exercise of stock awards		4,999			879
Excess tax benefits from stock-based compensation		1,913			124
Cash dividends paid		(3,835	)		(3,801	)
Net cash used in financing activities		(10,484	)		(7,399	)
Net (decrease) increase in cash and cash equivalents		(10,688	)		34,902
Cash and cash equivalents:
Beginning of period		93,714			26,278
End of period	$	83,026		$	61,180