Saks Comps Climb 1.7% in August

Saks Incorporated, for the four weeks ended August 28, 2004 compared to the four weeks ended August 30, 2003, total sales increased 3.0% and comparable store sales increased 1.7%. By segment, comparable store sales increased 0.9% for SDSG and increased 2.9% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

For the four weeks ended August 28, 2004 compared to the four weeks ended August 30, 2003, owned sales were:

                                                    Total   Comparable
                            This Year  Last Year  Increase   Increase
                            ---------  ---------  --------  ----------
SDSG                        $  247.6   $   243.4      1.7%        0.9%
SFAE                           165.9       158.1      4.9%        2.9%
                            ---------  ---------  --------  ----------
Total                       $  413.5   $   401.5      3.0%        1.7%

August 2004 sales performance at SFAE reflected reduced levels of clearance selling in the Saks Fifth Avenue stores from one year ago as well as a reduced electronic gift card promotional event.

Merchandise categories with the best sales performances for SDSG in August were outerwear, children's apparel, women's better apparel, women's petite apparel, and men's furnishings. Categories with softer sales performances for SDSG in August were home, furniture, intimate apparel, and men's sportswear. Categories with the best sales performances for SFAE in August were women's designer apparel, women's contemporary sportswear, men's dress furnishings, men's contemporary sportswear, bridal, fashion jewelry, and accessories. Categories with the softest performances for SFAE in August were women's special sizes, women's bridge apparel, fine jewelry, hosiery, and intimate apparel.

On a year-to-date basis for the seven months ended August 28, 2004 compared to the seven months ended August 30, 2003, owned sales were:

                                                    Total   Comparable
                           This Year   Last Year  Increase   Increase
                           ---------   ---------  --------  ----------
SDSG                        $1,867.7   $ 1,785.1      4.6%        3.8%
SFAE                         1,414.4     1,215.0     16.4%       14.4%
                           ---------   ---------  --------  ----------
Total                       $3,282.1   $ 3,000.1      9.4%        8.1%

Looking ahead, SDSG comparable store sales in September are expected to be negatively affected by an event shift from September last year into October this year. Consequently, SDSG October comparable store sales are expected to benefit from this shift.