Stockholders' Equity

12 Months Ended

Jan. 28, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

NOTE 8 - STOCKHOLDERS’ EQUITY

The Company’s deferred compensation plan covering executives and certain officers provides an investment option that allows participants to elect to purchase shares of Stage Stores common stock (the “Company Stock Investment Option”).  The Company established a grantor trust to facilitate the collection of funds and purchase of Company shares on the open market at prevailing market prices.  All shares purchased through the grantor trust are held in the trust until the participants are eligible to receive the benefits under the terms of the plan. At the time of the participant’s eligibility, the deferred compensation obligation related to the Company Stock Investment Option is settled by the delivery of the fixed number of shares held by the grantor trust on the participant’s behalf.  In 2011, 2010 and 2009, participants in the Company’s deferred compensation plan elected to invest approximately $0.1 million, $0.1 million and $0.1 million, respectively, of the total amount of deferred compensation withheld, in the Company Stock Investment Option.  The purchase of shares made by the grantor trust on behalf of the participants is included in treasury stock and the corresponding deferred compensation obligation is included in additional paid-in capital.

On June 13, 2011, the Company announced that its Board of Directors (the “Board”) approved a 20% increase in the Company’s quarterly cash dividend rate to 9 cents per share from the previous quarterly rate of 7.5 cents per share.  The new quarterly dividend rate of 9 cents per share is applicable to dividends declared after June 22, 2011.  On February 22, 2012, the Company announced that the Board declared a quarterly cash dividend of 9 cents per share on the Company’s common stock, payable on March 21, 2012 to shareholders of record at the close of business on March 6, 2012.

On March 8, 2011, the Company announced that the Board approved a new Stock Repurchase Program which authorized the Company to repurchase up to $200.0 million of its outstanding common stock (the “2011 Stock Repurchase Program”) from time to time, either on the open market or through privately negotiated transactions.  During 2011, the Company spent $100.0 million under the 2011 Stock Repurchase Program to repurchase approximately 6.1 million shares of its common stock.  The Company has $100.0 million remaining under the 2011 Stock Repurchase Program.

The Board has also granted the Company the authority to repurchase additional amounts of its outstanding common stock using available proceeds from the exercise of stock options, as well as the tax benefits that accrue to the Company from the exercise of stock options, SARs and from other equity grants.  During 2011, the Company repurchased approximately 0.7 million shares for $10.0 million using proceeds from these sources.  In addition, the Company paid $0.8 million, $0.1 million and $0.2 million in 2011, 2010 and 2009, respectively, on behalf of the recipients who relinquished shares to satisfy the tax liability associated with performance shares and stock awards.  At January 28, 2012, approximately $0.3 million was available to the Company for stock repurchases using proceeds from the exercise of employee stock options and SARs.

During 2011, the Company retired 27.3 million shares of its treasury stock at a cost of $429.3 million.