Saks Inc. September Comps Decrease 4.0%

Retailer Saks Incorporated announced that total September sales decreased 3.8% and comparable store sales decreased 4.0% on a total company basis. By segment, comparable store sales decreased 10.9% for SDSG and increased 5.8% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

For the five weeks ended October 2, 2004 compared to the five weeks ended October 4, 2003, owned sales were:

                                                      Total     Comparable
                                                Increase     Increase
                          This Year  Last Year (Decrease)   (Decrease)
                          --------- ---------- ---------- ------------
SDSG                      $  309.5   $  348.6     (11.2%)      (10.9%)
SFAE                         259.8      243.1       6.9%         5.8%
                           --------   -------- ---------- ------------
Total                     $  569.3   $  591.7     ( 3.8%)      ( 4.0%)

Management estimates hurricane activity in the Southeast negatively affected total comparable store sales in September 2004 by approximately $12 million, or 200 basis points. By segment, the hurricane effect is estimated at $7 million, or 200 basis points, for SDSG, and approximately $5 million, or 200 basis points, for SFAE. In addition, management estimates SDSG comparable store sales in September were negatively affected by approximately $14 million, or 400 basis points, primarily related to the shift of “Capacity Days,” the largest sales event of the fall season at the Carson Pirie Scott stores, from September last year into October this year. Consequently, SDSG October comparable store sales are expected to benefit from this shift. Unseasonably warm weather throughout the Midwest also negatively affected SDSG sales for the month.

Merchandise categories with the best sales performances for SDSG in September were cosmetics, accessories, and men's furnishings. Categories with the softest sales performances for SDSG in September were outerwear, children's apparel, shoes, dresses, and women's petite and moderate sportswear. Categories with the best sales performances for SFAE in September were women's designer apparel, women's contemporary sportswear, men's dress furnishings, men's contemporary sportswear, jewelry, and handbags. Categories with the softest performances for SFAE in September were outerwear, children's apparel, and hosiery.

On a quarter-to-date basis for the two months ended October 2, 2004 compared to the two months ended October 4, 2003, owned sales were:

                                                 Total      Comparable
                                                Increase     Increase
                          This Year Last Year  (Decrease)   (Decrease)
                          --------- --------- ----------- ------------
SDSG                       $ 557.0   $ 591.7       (5.9%)       (6.0%)
SFAE                         425.8     401.3        6.1%         4.7%
                            -------   ------- ----------- ------------
Total                      $ 982.8   $ 993.0       (1.0%)       (1.7%)

On a year-to-date basis for the eight months ended October 2, 2004 compared to the eight months ended October 4, 2003, owned sales were:

                        
                                                    Total   Comparable
                             This Year  Last Year  Increase  Increase
                            ---------- ---------- --------- ----------
SDSG                        $ 2,177.1  $ 2,133.7      2.0%      1.4%
SFAE                          1,674.3    1,458.1     14.8%     13.0%
                             ---------  --------- --------- ----------
Total                       $ 3,851.4  $ 3,591.8      7.2%      6.1%