Saks Has Tough February After 6.4% Comps Decline

Saks Inc. reported a 6.4% decrease in total company comparable store sales and a 17.2% decrease in total sales for the month of February. By segment, comparable store sales decreased 6.1% for SDSG and decreased 6.7% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

For the four weeks ended February 25, 2006 compared to the four weeks ended February 26, 2005, owned sales were:

                            This      Last    Total        Comparable
                             Year      Year   (Decrease)   (Decrease)
                            -------- -------- ----------- ------------
SDSG                        $ 190.9  $ 249.0      (23.3%)       (6.1%)
SFAE                          171.0    188.2      ( 9.2%)       (6.7%)
                            -------- -------- ----------- ------------
Total                       $ 361.9  $ 437.2      (17.2%)       (6.4%)

February comparable store sales were negatively affected by several factors. Both SDSG and SFAE had less clearance merchandise in February 2006 than one year ago. At SDSG, “Community Days,” a major promotional event at the Northern Department Store Group which typically occurs in February, was moved into March this year. At SFAE, a store-wide merchandise clearance event which typically takes place in February was accelerated into January this year.

Merchandise categories with the best sales performances for SDSG in February were outerwear, furniture, men's furnishings, and shoes. Categories with the softest sales performances for SDSG in February were women's moderate sportswear, women's petite sportswear, and junior's apparel. Categories with the best sales performances for SFAE in February were handbags, fragrances, men's contemporary sportswear, and women's designer apparel. Categories with the softest performances for SFAE in February were women's bridge apparel, women's large size apparel, men's clothing, and shoes.

The Company completed the sale of its SDSG Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005. Therefore, Proffitt's/McRae's sales are included in prior year sales and excluded from current year sales.

Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The Company also operates its Saks Department Store Group (SDSG) with 39 Parisian stores; 142 Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store stores (collectively known as the Northern Department Store Group or “NDSG”); and 57 Club Libby Lu specialty stores.

On October 31, 2005, the Company announced it had reached an agreement to sell NDSG to The Bon-Ton Stores, Inc. for $1.185 billion. The transaction is expected to close by March 13, 2006. On January 9, 2006, the Company announced it is exploring strategic alternatives for Parisian.