Saks Comps Climb 4% in January

Retailer Saks Incorporated announced that for the month of January total Company comparable store sales increased 4.0% and total sales decreased 10.9%. By segment, comparable store sales increased 4.3% for SDSG and increased 3.7% for SFAE for the month.

Sales below are in millions and represent sales from owned departments only.

For the four weeks ended January 28, 2006 compared to the four weeks ended January 29, 2005, owned sales were:

                              This       Last     Total     Comparable
                              Year       Year   (Decrease)   Increase
                             ------     ------  ----------  ----------
SDSG                         $157.7     $193.6    (18.5%)      4.3%
SFAE                          158.6      161.4    ( 1.7%)      3.7%
                             ------     ------    -------     ------
Total                        $316.3     $355.0    (10.9%)      4.0%

At SFAE, a four-day store-wide merchandise clearance event was added to the promotional calendar in January 2006.

Merchandise categories with the best sales performances for SDSG in January were furniture, junior's apparel, women's large size sportswear, intimate apparel, and home. Categories with the softest sales performances for SDSG in January were women's moderate sportswear, men's sportswear, and men's furnishings. Categories with the best sales performances for SFAE in January were women's and men's contemporary sportswear, women's designer apparel, accessories, and fragrances. Categories with the softest performances for SFAE in January were women's bridge apparel, outerwear, fashion jewelry, intimate apparel, and men's clothing.

For the fourth quarter ended January 28, 2006 compared to the fourth quarter ended January 29, 2005, owned sales were:

                             This       Last      Total     Comparable
                             Year       Year    (Decrease)   Increase
                           --------   --------  ----------  ----------
SDSG                       $  965.4   $1,217.6    (20.7%)      2.4%
SFAE                          792.9      829.6    ( 4.4%)      1.4%
                           --------   --------    -------     ------
Total                      $1,758.3   $2,047.2    (14.1%)      1.9%

For the fiscal year ended January 28, 2006 compared to the fiscal year ended January 29, 2005, owned sales were:

                             This       Last      Total     Comparable
                             Year       Year    (Decrease)   Increase
                           --------   --------  ----------  ----------
SDSG                       $3,205.5   $3,680.9    (12.9%)      0.6%
SFAE                        2,705.9    2,707.3    ( 0.1%)      4.0%
                           --------   --------    -------    ------
Total                      $5,911.4   $6,388.2    ( 7.5%)      2.1%

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. The Saks Fifth Avenue store in New Orleans is closed due to hurricane damage and has been removed from the comparable store sales calculation. Revenues for the New Orleans store totaled approximately $3.2 million in January 2005.

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 58 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. The transaction is expected to close early in the first fiscal quarter of 2006. On January 9, 2006, the Company announced it is exploring strategic alternatives for Parisian.