May Company September Comps Down 1.3% Despite Labor Day Shift

The May Department Stores Company reported preliminary net sales of $1.34 billion for the five-week period ended Oct. 2, 2004, an 18.0% increase from $1.14 billion in the similar period last year. Store-for-store sales decreased 1.5%. September store-for-store sales decreased 1.3%, excluding the remaining 15 stores that May previously announced it will divest.

September sales benefited by the movement of the pre-Labor Day sales promotion event to the first week of fiscal September 2004 from the last week of fiscal August 2003. Combined August and September store-for-store sales
decreased 3.4%, excluding the 15 stores that May previously announced it will divest.

Net sales for the first eight months of fiscal 2004 were $8.31 billion, a
4.4% increase, compared with $7.96 billion during the first eight months of
fiscal 2003.

    Net sales were as follows:

                          Fiscal   Fiscal   Percent  Store-for-Store Decrease
    (dollars in millions)   2004     2003   Increase      Actual   Adjusted*

    September           $1,339.2  $1,135.0    18.0%        (1.5)%     (1.3)%
    August/September     2,393.1   2,088.8    14.6         (3.9)      (3.4)
    Year-to-date         8,311.7   7,961.7     4.4         (1.2)      (0.6)

    * Excludes the remaining 15 stores that May previously announced it will
      divest.

Net sales include merchandise sales and lease department income. Store-
for-store sales compare sales of stores open during both years beginning the
first day a new store has prior-year sales and exclude sales of stores closed
during both years.

September sales overall did not meet our expectations. Sportswear for the
young-adult female customer, however, performed well, led by fashion looks in
jackets, skirts, and tops. Trend-right newness also continued to fuel ladies'
accessories which had sales increases in costume jewelry, better handbags,
small leather goods, and layering pieces driven by ponchos and genuine
fur/faux fur items.

Sales of ladies' suits, junior sportswear, and young men's sportswear were
above the trend for the total store, as were men's designer dress shirts,
neckwear, and suit separates. Shoes, dresses, children's apparel, and men's
sportswear lagged the store's performance. Electronic giftables and luggage
were stronger-performing categories in the home, but home furnishings sales
were generally weak.