17 th Annual ICR XChange Conference January 12, 2015

17 th Annual ICR XChange Conference January 12, 2015

safe harbor This presentation contains forward-looking statements. Such statements are intended to qualify for the protection of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. The words anticipate, estimate, expect, objective, goal, project, intend, plan, believe, will, should, may, target, forecast, guidance, outlook and similar expressions generally identify forward-looking statements. Similarly, descriptions of the Company s objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions and factors concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those discussed in forward-looking statements as a result of various factors. Such factors include, but are not limited to, the ability of the Company to maintain normal trade terms with vendors, the ability of the Company to comply with the covenant requirements contained in its revolving credit facility agreement, the demand for the Company s merchandise and other factors. The demand for merchandise and sales volume may be affected by significant changes in economic conditions, including an economic downturn, unemployment rates, consumer confidence, energy and gasoline prices and other factors influencing discretionary consumer spending. Other factors affecting the demand for merchandise and sales volume include unusual weather patterns, an increase in the level of competition, changes in fashion trends, changes in the average cost of merchandise, availability of merchandise on normal payment terms and the failure to achieve the expected results of the Company s merchandising, marketing and store operating plans. Additional assumptions, factors and risks concerning future conditions are discussed in the Risk Factors section of the Company s most recent Annual Report on Form 10-K as filed with the SEC ( Form 10-K ), and other factors discussed from time to time in the Company s other SEC filings. Forward-looking statements are based upon management s then-current views and assumptions regarding future events and operating performance. Although management believes the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of its knowledge, forward-looking statements involve risks, uncertainties and other factors which may materially affect the Company s business, financial condition, results of operations or liquidity. Most of these factors are difficult to predict and are generally beyond the Company s control. This presentation should be considered in conjunction with the Form 10-K and the Company s other SEC filings. You should consider all such risks, uncertainties and other factors carefully in evaluating forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. This presentation was prepared as of Sunday, January 11, 2015, and the Company undertakes no obligation to publicly update forward-looking statements whether as a result of new information, future events or otherwise.

Holiday 2014 highlights! Total sales grew 6.8% to $447M! Comparable sales increased 6.5%! Top 3 performing categories were footwear, women s and cosmetics! Direct-to-consumer sales grew 34%! Average unit retail increased! Merchandise margins increased over LY! Inventory was well managed! Strategic growth initiatives are gaining traction Holiday is 9-week Nov/Dec period ending January 3, 2015 3"

4 reasons differentiate Stage Stores 1 2 Predominately located in small and mid-sized towns and communities 3 4 Moderately priced brands and trendright styles in apparel, accessories, cosmetics, footwear and home Small box format averaging 18,000 square feet provides a distinct shopping experience Plus... A rapidly growing Direct-to-Consumer business 4"

we re predominately located in small and mid-sized towns and communities!!!! Less competition Trusted and respected connection to the community 40 states 858 locations 57% 26% 17% 5

we re predominately located in small and mid-sized towns and communities communities Number of stores by population 492 222 144 57% < 50,000 50,000-150,000 > 150,000 6

our small box format provides a distinct shopping experience! A welcoming, personal environment that offers the experience of a specialty department store! A broad representation of merchandise departments, each highly curated! Typical department store competition runs larger than 80,000 square feet 7"

we have moderately priced merchandise for the whole family Our pricing is high/low with abundant promotions and coupons Merchandise+Mix Women's/Junior's 13% 4% Men's/Young7Men's Apparel (66%) 9% 38% Children's Accessories 8% 11% 17% Cosmetics Footwear Non-Apparel (34%) Home 8

we bring brands and trend-right style to our customer! Merchandise assortments are continually enhanced with updated styles, new brand additions and greater penetration of desired existing brands! ~85% name brand merchandise! We have great brands because vendors want access to our unique customers 9

growth drivers our direct-to-consumer is growing rapidly 6.0% DTC as a percent of sales >5.0% 5.0% 4.0% 3.0% 2-3% 2.0% 1.0% 1.4% 1.8% 0.0% 2012 2013 2014E 2017E 10" 10

we have 4 goals 1Develop Direct-to Consumer 3 4 Connect with Our Customers 2 Productivity Grow Sales Drive Shareholder Value 11

supported by 4 growth initiatives 1 2 3 4 Improve the store environment Create an omnichannel experience by aggressively growing Direct-to- Consumer Lead with more trend-right and style-driven assortments Deliver targeted marketing and messaging 12

1 create an omni-channel experience by aggressively growing direct-to-consumer! Continue with DTC enhancements and functionality improvements! Expand assortments! Improve site experience! Broaden reach! Expand fulfillment capabilities 13

2 lead with more trend-right and style-driven assortments! New and Expanded Brands Dior, Betsey Johnson, Calvin Klein, DKNY, Calphalon and Samsonite! Cosmetics Counters Estee Lauder and Clinique in over 300 stores! Home re-launched in Q3 14 with highly edited offerings in kitchen, textiles and gifts! Localization size pack optimization and store level markdown optimization 14

3 improve the store environment! Store Remodels remodel the chain to be bright, clean and a powerful canvas to feature trend-right styles and value! New Fixture Package improves presentation of products and makes stores easier to shop; in 20% of chain and growing! Priorities - shift capital spend from opening new stores to updating the existing fleet:! Expect to open <10 stores in 2015 15

4 deliver targeted marketing messaging! Optimize media mix by shifting mediums and timing! Increase targeted messaging and personalized 46% 45% content, flexing offers and content 44%! Expand loyalty programs for marketing and customer engagement 42% 40% 40%! Leverage Private Label Credit Card! Penetration rate has grown from 32% in 38% 36% 36% 2011 with $19 million in benefits to 36% in 2013 with $46 million in benefits 34% 32% 32% 33%! Expect to reach 40% in 2014 and 45% in 2017! Pilot tender-neutral loyalty program in 2015 30% Credit Penetration 2011 2012 2013 2014E 2017E 16

financial strength and outlook! Financial strength Stage has the financial strength to fund its growth and return capital to its shareholders Solid balance sheet Disciplined inventory management Conservative capital structure! Strong dividend track record Annualized Dividend % Increase June 2014 June 2013 $0.56 $0.50 12% 25% September 2012 $0.40 11% September 2011 $0.36 20% September 2010 $0.30 50%! FY2014 Outlook Comp Sales EPS from Continuing Operations 1.0% - 1.5% $1.14 - $1.18 17

why invest in Stage Stores! Customer centric with access to a distinct customer! Differentiated model with small format department stores in unique markets! Opportunity to drive productivity with improved merchandise and refreshed stores! Aggressive growth in direct-to-consumer business! Improved customer connection through loyalty and other marketing initiatives! Roadmap to achieve 10% EBITDA! Solid financials and balance sheet! Consistent dividend growth 18