Saks Sales Increase 2.1%; Comps Up 0.8%

Saks Inc. announced that for the four weeks ended January 29, 2005 compared to the four weeks ended January 31, 2004, total sales increased 2.1% and comparable store sales increased 0.8% on a total company basis. By segment, comparable store sales decreased 0.9% for SDSG and increased 3.0% for SFAE for the month.

Sales below are in millions and represent sales from owned departments only. For the four weeks ended January 29, 2005 compared to the four weeks ended January 31, 2004, owned sales were:

                                                            Comparable
                                                    Total    Increase
                             This Year  Last Year  Increase (Decrease)
                             ---------- ---------- -------- ----------
SDSG                         $   193.6  $   192.1      0.8%     (0.9%)
SFAE                             161.4      155.5      3.8%      3.0%
                             ---------- ---------- -------- ----------
Total                        $   355.0  $   347.6      2.1%      0.8%

Management estimates that severe winter storms negatively affected January sales by approximately 100 basis points at SDSG, 300 basis points at SFAE, and 200 basis points on a consolidated basis.

Merchandise categories with the best sales performances for SDSG in January were children’s apparel, shoes, women’s moderate sportswear, men’s furnishings, and accessories. Categories with the softest sales performances for SDSG in January were furniture, outerwear, soft home, and dresses. Categories with the best sales performances for SFAE in January were women’s contemporary apparel, women’s designer apparel, bridal, men’s contemporary sportswear, jewelry, and handbags. Categories with the softest performances for SFAE in January were children’s apparel, women’s private brand apparel, women’s bridge sportswear, outerwear, and Salon Z (women’s large sizes).

For the fourth quarter ended January 29, 2005 compared to the fourth quarter ended January 31, 2004, owned sales were:

                                                    Total   Comparable
                            This Year   Last Year  Increase  Increase
                           ----------- ----------- -------- ----------
SDSG                       $  1,217.6  $  1,195.8      1.8%       1.1%
SFAE                            829.6       755.3      9.8%       8.4%
                           ----------- ----------- -------- ----------
Total                      $  2,047.2  $  1,951.1      4.9%       4.0%

For the fiscal year ended January 29, 2005 compared to the fiscal year ended January 31, 2004, owned sales were:

                                                    Total   Comparable

                            This Year   Last Year  Increase  Increase

                           ———– ———– ——– ———-

SDSG                       $  3,680.9  $  3,599.8      2.3%       1.6%

SFAE                          2,707.3     2,407.3     12.5%      10.8%

                           ———– ———– ——– ———-

Total                      $  6,388.2  $  6,007.1      6.3%       5.3%