March Comps Jump 9.5% at Saks

Retailer Saks Incorporated announced that for the five weeks ended April 3, 2004 total sales increased 11.0% and comparable store sales increased 9.5% on a total company basis. By segment, comparable store sales increased 1.9% for SDSG and increased 20.6% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

For the five weeks ended April 3, 2004 compared to the five weeks ended April 5, 2003, owned sales were:

                                      Total    Comparable
          This Year    Last Year    Increase    Increase
          ---------    ---------    --------   ----------
SDSG      $   322.5    $   312.2        3.3%         1.9%
SFAE          257.3        210.3       22.4%        20.6%
          ---------    ---------    --------   ----------
Total     $   579.8    $   522.5       11.0%         9.5%

Merchandise categories with the best sales performances for SDSG in March were accessories, better women's sportswear, cosmetics, dresses, and men's furnishings. Categories with softer sales performances for SDSG in March were furniture, hard home, juniors' apparel, and women's special size apparel. Categories with the best sales performances for SFAE in March were women's designer apparel, women's contemporary sportswear, women's “gold range” apparel, women's private brand apparel, handbags, and shoes. Categories with the softest performances for SFAE in March were hosiery, intimate apparel, and eveningwear.

SDSG sales in March 2004 were negatively affected by a promotional shift. March 2003 contained the first four days of a ten-day promotional event at SDSG, with the balance falling in April 2003. This year, the entire event will fall in April. SFAE sales for April 2004 are expected to be negatively affected by a promotional change. In April 2003, SFAE held a Private Shopping Night Event for proprietary credit card customers offering early season discounts on designer merchandise. Management does not expect to replicate this event in April 2004.

For the two months ended April 3, 2004 compared to the two months ended April 5, 2003, owned sales were:

                                     Total     Comparable
          This Year    Last Year    Increase    Increase
          ---------    ---------    --------   ----------
SDSG      $   569.7    $   538.7        5.7%         4.3%
SFAE          436.2        350.8       24.3%        22.4%
          ---------    ---------    --------   ----------
Total     $ 1,005.9    $   889.5       13.1%        11.5%

Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 62 Saks Fifth Avenue stores and 53 Saks Off 5th stores. The Company also operates its Saks Department Store Group (SDSG) with 241 department stores.