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

January 8, 2007

(Date of Report, date of earliest event reported)

Stage Stores, Inc.

(Exact name of registrant as specified in its charter)

1-14035

(Commission File Number)

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)

(800) 579-2302

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-12 under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

Stage Stores issues News Release announcing updated long-range strategic growth initiatives.

On January 8, 2007, Stage Stores, Inc. issued a News Release announcing updated long-range strategic growth initiatives. A copy of the News Release is attached to this Form 8-K as Exhibit 99.1.

Stages Stores issues News Release announcing stock split and stock repurchase program and providing 2007 sales and EPS forecasts.

On January 9, 2007, Stage Stores, Inc. issued a News Release announcing a 3-for-2 stock split and a $50 million stock repurchase program and providing preliminary FY 2007 sales and EPS forecasts on a post-split basis. A copy of the News Release is attached to this Form 8-K as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 News Release issued by Stage Stores, Inc. on January 8, 2007 announcing updated long-range strategic growth initiatives.

99.2 News Release issued by Stage Stores, Inc. on January 9, 2007 announcing a 3-for-2 stock split and a $50 million stock repurchase program and providing preliminary FY 2007 sales and EPS forecasts on a post-split basis.

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, hereunto duly authorized.

	STAGE STORES, INC.
January 11, 2007	/s/ Michael E. McCreery
(Date)	Michael E. McCreery
	Executive Vice President and
	Chief Financial Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

CONTACT:

Bob Aronson

Vice President, Investor Relations

800-579-2302

(baronson@stagestores.com)

FOR IMMEDIATE RELEASE

STAGE STORES ANNOUNCES UPDATED LONG-RANGE

STRATEGIC GROWTH INITIATIVES

HOUSTON, TX, January 8, 2007 - Stage Stores, Inc. (NYSE: SSI) announced today that in conjunction with its recently completed long-range planning process, it will implement the following long-range strategic growth initiatives:

· Undertake an expanded new store organic growth program by doubling the number of new store openings to approximately 70 per year beginning in fiscal 2008, versus an average of 33 new stores per year during the past 4 years;

· Further expand the square footage in the Company’s existing store base through a higher number of store relocations and expansions;

· Increase the penetration in plus size sportswear and expand the selling floor space dedicated to this category;

· Strengthen the assortments and presentation of key brands in family footwear;

· Continue the roll-out of cosmetics and treatment products, with an emphasis on Estee Lauder and Clinique products;

· Refine and optimize selling floor space allocations to maximize sales and margin per square foot generation; and

· Initiate a site selection process for a third distribution center to support the Company’s planned geographic expansion of its store base and accelerated square footage growth plans, with an expected start-up in mid-2008.

--more--

Stage Stores Announces

Strategic Initiatives

Page - 2

Jim Scarborough, Chairman and Chief Executive Officer, commented, “Based upon the recent completion and conclusions of our long-range strategic planning process, I am pleased and excited to report that we will be doubling our new store opening program from our recent history of 33 stores per year, on average, to a new objective of 70 stores per year for the foreseeable future. Additionally, we will invest heavily into our existing core markets and store base with relocations and the expansion of our selling square footage as the top priority in these existing markets. Also, our customers have told us that we have significant opportunities for increased sales by expanding our assortments of branded footwear for the family, and in our women’s plus sizes area, and through the continued and methodical roll-out of cosmetics and treatment products in our existing, as well as future Stage market areas. To support our exciting planned growth initiatives, we will begin a site selection study for a third distribution center, with an expected start-up date of mid-2008.

“Our concept of ‘bringing big brands to small markets’ continues to provide us with a unique and profitable niche, and we believe that the implementation of these strategic initiatives will accelerate our top and bottom line growth, and greatly enhance our shareholder value,” Mr. Scarborough concluded.

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 656 stores located in 33 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.

“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 long-range strategic growth initiatives and the Company’s belief that its long-range strategic growth initiatives will accelerate its top and bottom line growth and greatly enhance shareholder value. 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.

--more--

Stage Stores Announces

Strategic Initiatives

Page - 3

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 subsequent Quarterly Reports on Form 10-Q as filed with the SEC and other factors as may periodically be described in other Company filings with the SEC.

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EX-99.2

Exhibit 99.2

NEWS RELEASE   

CONTACT:

Bob Aronson

Vice President, Investor Relations

800-579-2302

(baronson@stagestores.com)

FOR IMMEDIATE RELEASE

STAGE STORES ANNOUNCES 3-for-2 STOCK SPLIT, A

$50 MILLION STOCK REPURCHASE PROGRAM AND

PROVIDES PRELIMINARY FY 2007 SALES AND EPS

FORECASTS ON A POST-SPLIT BASIS

-- Quarterly Dividend To Be Maintained at $0.05 Per Share After Stock Split

 Increasing Yield By 50% --

-- Forecasts FY 2007 EPS Growth of Approximately 20%

HOUSTON, TX, January 9, 2007 - Stage Stores, Inc. (NYSE: SSI) announced today that its Board of Directors has approved a 3-for-2 split of the Company’s common stock, and has additionally authorized the Company to implement a $50 million Stock Repurchase Program. In approving the 3-for-2 stock split, the Board stated its intention to maintain the Company’s quarterly cash dividend at its current level of $0.05 per share, which represents a 50% increase in the yield on a post-split basis.

Jim Scarborough, Chairman and Chief Executive Officer, commented, “Based on our continuing solid financial results, our strong cash flow, our healthy balance sheet, and our confidence in our long-term prospects, which should benefit from the implementation of our recently announced long-range strategic growth initiatives, I am very pleased to report that our Board of Directors has approved a 3-for-2 stock split as well as a $50 million Stock Repurchase Program. I am also very pleased to report that our Board has resolved to maintain our quarterly cash dividend at its current level of $0.05 per share, which, on an after-stock split basis, represents a 50% increase in the dividend yield. We believe that all of these actions are in the best interest of our shareholders, and should result in enhanced shareholder value.”

--more--

Stage Stores Announces 3-for-2 Stock Split,

$50 Million Stock Repurchase Program and

Provides Preliminary FY 2007 Guidance

Page - 2

Details of 3-for-2 Stock Split

The Company’s 3-for-2 stock split will be paid as a stock dividend. Holders of record of the Company’s common stock at the close of business on January 18, 2007, will receive one additional share of common stock for every two shares of common stock that they owned as of that date. Fractional shares resulting from the stock split will be paid in cash in lieu of issuing fractional shares. The stock dividend will be paid on January 31, 2007. Prior to the split, there will be approximately 29,160,000 shares of the Company’s common stock outstanding. After the split, there will be approximately 43,740,000 shares of the Company’s common stock outstanding.

Details of Stock Repurchase Program

Under the Company’s $50 million Stock Repurchase Program, the Company may repurchase its outstanding common stock up to that amount from time to time, either on the open market or through privately negotiated transactions. The Stock Repurchase Program will be financed by the Company’s cash flow and other liquidity sources. In addition, the Company expects to continue to repurchase shares using the proceeds that it receives from the exercise of employee stock options under its Amended and Restated 2001 Equity Incentive Plan, including the tax benefits that will accrue to the Company from the exercise of those options.

Preliminary FY 2007 Guidance

The Company also reported today that, based on its preliminary financial plans for the 2007 fiscal year, and reflecting the impact of the 3-for-2 stock split, it currently expects to achieve the following results for the 52-week period ending February 2, 2008:

· Comparable store sales: low to mid single digits

· Sales ($mm): $1,610 - $1,643

· Diluted Earnings Per Share: $1.47 to $1.57

· The above diluted earnings per share range does not reflect any potential beneficial impact on diluted earnings per share related to the Company’s $50 million Stock Repurchase Program.

--more--

Stage Stores Announces 3-for-2 Stock Split,

$50 Million Stock Repurchase Program and

Provides Preliminary FY 2007 Guidance

Page - 3

Mr. Scarborough commented, “The mid-point of our preliminary EPS forecast range for our 2007 fiscal year represents an approximate 20% increase in earnings versus our 2006 EPS forecast range of $1.24 to $1.28 on a post-stock split basis. This is clearly a significant increase in earnings for us, and reflects the positive impact of our various growth initiatives, combined with the contribution of the 108 new stores we opened during 2006, and our expectation of improved operating performance in our Peebles division in 2007.”

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 656 stores located in 33 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..

“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 current sales and diluted EPS outlooks for the 2007 fiscal year. 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 subsequent Quarterly Reports on Form 10-Q as filed with the SEC and other factors as may periodically be described in other Company filings with the SEC.

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