Saks Incorporated July total sales increased 7.3% and comparable store sales increased 5.5% on a total company basis. By segment, comparable store sales increased 0.8% for SDSG and increased 12.8% for SFAE for the month.

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

For the four weeks ended July 31, 2004 compared to the four weeks ended August 2, 2003, owned sales were:

                                            Total          Comparable 
                This Year     Last Year    Increase        Increase
                ---------     ---------    --------        ----------
SDSG            $ 224.2       $ 219.2         2.3%             0.8% 
SFAE              164.7         143.1        15.1%            12.8% 
                ---------     ---------    --------        ----------
Total           $ 388.9       $ 362.3         7.3%             5.5%

Sales for SDSG continued to be negatively affected by unseasonably cool weather, particularly in the Midwest and upper Great Plains regions. Sales of clearance merchandise at SDSG were generally disappointing, leading to increased markdown activity in order to balance quarter-end inventories.

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

For the second quarter ended July 31, 2004 compared to the quarter ended August 2, 2003, owned sales were:

                                            Total          Comparable 
                This Year     Last Year    Increase        Increase 
                ---------     ---------    --------        ----------
SDSG            $  766.4      $  746.8        2.6%            2.0% 
SFAE               573.9         480.7       19.4%           17.0% 
                ---------     ---------    --------        ----------
Total           $1,340.3      $ 1,227.5       9.2%            7.9%

On a year-to-date basis for the six months ended July 31, 2004 compared to the six months ended August 2, 2003, owned sales were:

                                                                    
                                            Total          Comparable 
                This Year     Last Year    Increase        Increase   
                ---------     ---------    --------        ----------
SDSG            $ 1,620.1     $ 1,541.7       5.1%            4.2%    
SFAE              1,248.5       1,056.9      18.1%           16.1%   
                ---------     ---------    --------        ----------
Total           $ 2,868.6     $ 2,598.6      10.4%            9.1%