8-K

                            FORM 8-K

        UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549


                            FORM 8-K
                         CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                              1934


                        December 10, 1999
        (Date of Report, date of earliest event reported)


                       Stage Stores, Inc.
     (Exact name of registrant as specified in its charter)


             Commission file number 001-14035



           DELAWARE                         76-0407711
(State or other jurisdiction of          (I.R.S. Employer
incorporation or organization)         Identifications No.)

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


                         (713) 667-5601
      (Registrant's telephone number, including area code)


                         Not Applicable
     (Former name or address, if changed since last report)


ITEM 5.  Other Events.

     A  press  release regarding the Company announcing dismissal
of  class action lawsuit and certain other matters was issued  by
the  Company  on  December 9, 1999 and  is  attached  hereto  as
Exhibit 99.1.

ITEM 7.  Financial Statements and Exhibits.

     (a)  Financial statements of business acquired.

       Not applicable.

     (b)  Pro forma financial information.

       Not applicable.

     (c)  Exhibits.

       99.1  Press release dated December 9, 1999 issued by the
       Company.







                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange  Act
of  1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                        STAGE STORES, INC.

December 10, 1999                       /s/ James A. Marcum
 (Date)                                 James A. Marcum
                                        Vice Chairman and,
                                        Chief Financial Officer

EX-99.1

NEWS RELEASE

CONTACT:
Bob Aronson
Director of Investor Relations
(800) 579-2302

FOR IMMEDIATE RELEASE

 STAGE STORES, INC. ANNOUNCES DISMISSAL OF CLASS ACTION LAWSUIT
                 ______________________________

HOUSTON,  TX, December 9, 1999 -- Stage Stores, Inc. (NYSE:  SGE)
today  announced  that U.S. District Judge Kenneth  Hoyt,  in  an
order  entered  December  8,  1999, dismissed  the  class  action
lawsuit  alleging  violations of federal  securities  laws.   The
lawsuit was originally filed in the United States District  Court
for  the Southern District of Texas on March 30, 1999 against the
Company and certain of its officers, directors, underwriters  and
controlling shareholders.

At  the time of the filing, the Company categorically denied that
any  securities  laws  had been violated and  announced  that  it
intended  to vigorously contest all of the allegations  contained
in  the  complaint.  On July 23, 1999, the Company filed a motion
to  dismiss the lawsuit alleging that it was without merit.   The
court granted that request, and the lawsuit was dismissed.

Stage  Stores,  Inc.  brings  nationally  recognized  brand  name
apparel,  accessories,  cosmetics and  footwear  for  the  entire
family  to  small  towns  and communities throughout  the  United
States.  The company operated 654 stores in 33 states at the  end
of  the  third  quarter, primarily under the  Stage,  Bealls  and
Palais Royal trade names.

Any  statements  in  this press release that  may  be  considered
forward-looking statements are subject to risks and uncertainties
that  could  cause  actual results to differ  materially.   These
risks  and uncertainties are discussed in periodic reports  filed
by  the Company with the Securities and Exchange Commission  that
the Company urges investors to consider.
                         #          #          #