Saks Incorporated reported comparable store sales increased 10.6%
during October. Total sales reached $269.1 million versus $232.2
million, a 15.9% increase.

For the third quarter ended November 3, owned sales totaled $790
million compared to $691.1 million, a 14.3% increase. Comparable store
sales increased 11.4%.

For the nine months, owned sales totaled $2,263.6 million compared to
$1,965.6 million, a 15.2% increase. Comparable store sales increased
13%.

For October, the strongest categories at Saks Fifth Avenue were women’s
shoes; handbags; fashion and fine jewelry; men’s accessories, shoes,
and contemporary apparel; and fragrances. The weakest categories at
Saks Fifth Avenue for October were women’s classic and modern bridge
sportswear, Salon Z (women’s large sizes), outerwear, and soft
accessories. The Company’s October sales performance reflected
successful promotional events including a Friends & Family event
and an Electronic Gift Card event, both of which also were held in
October 2006. Saks Direct and Off 5th also performed well for the month.

Management expects comparable store sales growth of high-single digits
in the aggregate for the fourth quarter. The Company previously
disclosed that, due to the retail calendar shift and promotional
adjustments, it expects to see outsized comparable store sales growth
in November and below-average comparable store sales growth in December.

Saks Incorporated currently operates Saks Fifth Avenue, which consists
of 54 Saks Fifth Avenue stores, 49 Saks Off 5th stores, and saks.com.
The Company also operates Club Libby Lu specialty stores.