Profile: Stage Stores, Inc. (SSI)

Stage Stores, Inc. (Stage Stores) is a specialty department store retailer that offers brand name and private-label apparel, accessories, cosmetics and footwear. As of January 31, 2009, the Company operated 739 stores located in 38 states. The Company operates its stores under four names: Bealls, Palais Royal, Peebles and Stage. The Company offers a range of branded merchandise within merchandise categories, such as women's, men's and children's apparel, as well as accessories, cosmetics and footwear. The Company focuses on consumers in small and mid-size markets. Stage Stores has an average store size of approximately 18,600 selling square feet and approximately 80% of the Company's stores are located in strip shopping centers in which they are one of the anchor stores. An additional 14% of the Company's stores are located in local or regional shopping malls, while the remaining 6% are located in either free standing or downtown buildings.

The Company’s merchandise selection ranges from basics, including denim, underwear and foundations, to fashionable clothing offerings. Approximately 85% of the Company's sales consist of brands, such as Levi Strauss, Nike, Liz Claiborne, Calvin Klein, Chaps, Izod, Dockers, Carters, Jockey, Estee Lauder, Clinique, Nautica, Skechers and New Balance, while the remaining 15% of sales consist of the Company’s private-label merchandise. The Company's merchandising activities are conducted from its corporate headquarters in Houston, Texas, for its Bealls, Palais Royal and Stage locations, and from its South Hill, Virginia administrative offices for its Peebles locations. During the fiscal year ended January 31, 2009 (fiscal 2008), the distribution of net sales between the Company's various merchandise categories consisted of men's/young men's (18%), misses sportswear (17%), children's (12%), footwear (12%), junior sportswear (8%), accessories (8%), cosmetics (7%), special sizes (6%), dresses (5%), intimates (3%), home and gifts (2%), and outerwear, swimwear and other merchandise (2%).

The Company's primary target customers are women who are 25 and older. Stage Stores retail concept includes a private-label credit card program. The private-label credit card users, through the Company's VIP credit card program, get an array of benefits. Its active charge customers are awarded a bronze, silver or gold VIP card based on their level of annual purchases. Depending on their level, holders of these cards receive benefits, such as discounted or free gift-wrapping, special promotional discounts and invitations to private VIP Only sales.

The Company distributes all merchandise to its stores through its three distribution centers, which are located in Jacksonville, Texas; South Hill, Virginia, and Jeffersonville, Ohio. The Company's Jacksonville distribution center has 435,000 square feet of processing area and is capable of servicing 600 stores; the South Hill distribution center has 162,240 square feet of processing area and is capable of servicing 240 stores, and the Jeffersonville distribution center has 202,000 square feet of processing area and is capable of servicing 310 stores.