Saks Comps Up 4.6%; Sales Fall 10.8% for October

Saks Inc. announced that for the month of October, comparable store sales increased 4.6% and total sales decreased 10.8% to $436.7 million from $489.7 million for the same month last year. By segment, comparable store sales decreased 0.1% for SDSG and increased 10.0% for SFAE for the month.

The company completed the sale of its SDSG Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005. Therefore, Proffitt's/McRae's sales are included in prior year sales and in current year sales through June 2005 (fiscal month ended July 2, 2005). Beginning in July 2005 (fiscal month beginning July 3, 2005), Proffitt's/McRae's sales are excluded from total company and comparable sales.

For the four weeks ended October 29, 2005 compared to the four weeks
ended October 30, 2004, owned sales were:

                                          Total          Comparable
                                         Increase         Increase
        This Year        Last Year      (Decrease)       (Decrease)
        ---------       ----------      ----------       ----------
SDSG    $   226.1       $   286.2        (21.0%)            (0.1%)
SFAE        210.6           203.5          3.5%             10.0%
        ---------       ----------      ----------       ----------
Total   $   436.7       $   489.7        (10.8%)             4.6%

At SFAE, three days of a “Double Points” proprietary credit card event were shifted from September last year into October this year, positively affecting October 2005 sales. Management estimates that hurricane activity in the Southeast during the month of October negatively affected SFAE's comparable store sales by approximately 200 basis points for the month.

The Saks Fifth Avenue store in New Orleans suffered substantial damage related to Hurricane Katrina, which struck in late August 2005. The store remains closed indefinitely. Consequently, this location has been removed from the comparable store sales calculation. Revenues for the New Orleans store totaled approximately $4.7 million in October 2004 and approximately $12.3 million for the third quarter of 2004. Third quarter 2005 revenues for this store totaled $3.0 million.

Merchandise categories with the best sales performances for SDSG in October were shoes, intimate apparel, junior's apparel, and cosmetics. Categories with the softest sales performances for SDSG in October were women's moderate sportswear, women's petite sportswear, men's furnishings, and home. Categories with the best sales performances for SFAE in October were women's and men's contemporary sportswear, women's designer apparel, women's “gold range” apparel, and fine jewelry. Categories with the softest performances for SFAE in October were private brand, women's bridge apparel, evening dresses, and fashion jewelry.

For the quarter ended October 29, 2005 compared to the quarter ended
October 30, 2004, owned sales were:

                                            Total
                                           Increase       Comparable
          This Year        Last Year      (Decrease)       Increase
          ---------       ----------      ----------      ----------
SDSG      $   678.0       $   843.2        (19.6%)            0.1%
SFAE          629.6           629.2          0.1%             5.4%
          ---------       ----------      ----------      ----------
Total     $ 1,307.6       $ 1,472.4        (11.2%)            2.7%

On a year-to-date basis, for the nine months ended October 29, 2005
compared to the nine months ended October 30, 2004, owned sales were:

                                           Total         Comparable
                                          Increase        Increase
          This Year       Last Year      (Decrease)      (Decrease)
          ---------       ---------      ----------      ----------
SDSG      $ 2,240.1       $ 2,463.2         (9.1%)          (0.1%)
SFAE        1,913.0         1,877.7          1.9%            5.1%
          ---------       ---------      ----------      ----------
Total     $ 4,153.1       $ 4,340.9         (4.3%)           2.2%

Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The company also operates its Saks Department Store Group (SDSG) with 40 Parisian stores; 142 Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store stores (collectively known as the Northern Department Store Group or “NDSG”); and 56 Club Libby Lu specialty stores. On October 31, 2005, the Company announced it had reached an agreement to sell NDSG to The Bon-Ton Stores, Inc. for $1.185 billion in a transaction expected to close early in the first fiscal quarter of 2006. The company is exploring strategic alternatives for Club Libby Lu.