Saks’ Comps Fall 5.6%

As previously disclosed, May comparable store sales were positively
impacted by a promotional calendar shift, and consequently, management
expected that June comparable store sales would be negative. On a
quarter-to-date basis, for the two months ended July 7, 2007, owned
sales totaled $486.5 million compared to $425.8 million for the two
months ended July 1, 2006, a 14.3% increase. Comparable store sales
increased 12.5% for the two months combined. Management continues to
expect low-double digit comparable store sales growth for the second
fiscal quarter.

On a year-to-date basis, for the five months ended July 7, 2007, owned
sales totaled $1,272.1 million compared to $1,102.2 million for the
five months ended July 1, 2006, a 15.4% increase. Comparable store
sales increased 13.7% for the five-month period.

For June, the strongest categories at Saks Fifth Avenue stores were
men’s apparel, accessories, and shoes; women’s contemporary and
designer sportswear; handbags; and fragrances. The softest categories
at Saks Fifth Avenue were jewelry and women’s modern bridge apparel.
Saks Direct and Saks Off 5th performed well for the month.