Bringing nationally recognized brands to small and mid-sized towns

Stage Stores, Inc. brings moderately priced, nationally recognized brand name and private label apparel, accessories, cosmetics and footwear for the entire family to small and mid-size towns and communities across 39 states. With over 770 stores operating under the “Bealls”, “Goody’s”, “Palais Royal”, “Peebles”, and “Stage” trade names, the Company believes that it has developed a unique retailing concept and niche in these markets by offering a broad range of nationally recognized brand name merchandise with a high level of customer service in convenient locations.

A Message from Andy Hall, President and CEO...

As we forecasted, 2009 was a year of extraordinary economic events that significantly impacted our customers. Against that backdrop, I am very proud of our company's many accomplishments. Even as we face another year with an uncertain economy, I am confident that our Company will continue to grow stronger, with sales gains, operating margin expansion and a healthy increase in diluted earnings per share. We will operate with a more offensive mindset in 2010.

Highlights of our 2010 offensive playbook include opening 30–35 new stores, increasing comparable store merchandise receipts to drive sales and continuing to enhance and differentiate our branded merchandise assortments. We will open additional Estée Lauder and Clinique counters, re-introduce JH Collectibles, a moderately priced casual sportswear brand that is now an exclusive to Stage Stores, and launch the exciting Wishful Park private label to our Juniors customer. As a well-disciplined Company, we will continue to conservatively manage expenses, and maintain capital expenditures to 2009 levels to again drive cash flow and liquidity. We have already taken important steps to strengthen our organizational and senior management team by naming Rich Maloney as the Company’s Chief Merchandising Officer and Ed Record as the Company’s Chief Operating Officer. Lastly, we will continue to implement key innovations to improve our customers’ in-store experience and promote our Company’s visibility.

I remain bullish on the relevance of our small town business model in which we offer close-to-home shopping convenience for quality, name brand apparel at competitive prices.

The Stage Stores team remains committed to exceeding our customers’ expectations and delivering shareholder value in 2010 and beyond.