Saks July Comps Up 2.4%; Biz Sales Hurt Top Line

Retailer Saks Incorporated saw comparable store sales increased 2.4% for the month of July, but total sales decreased 36.4% to $216.4 million as a result of the sale of Proffitts, McRae’s,and the NDSG business. By segment, comparable store sales decreased 1.5% for SDSG and increased 3.4% for SFAE for the month.

Sales below are in millions and represent sales from owned departments only.
For the four weeks ended July 29, 2006 compared to the four weeks ended July 30, 2005, owned sales were:

                                           Total        Comparable
                                          Increase       Increase
            This Year     Last Year      (Decrease)     (Decrease)
            ---------     ---------      ----------     ----------
SDSG        $    48.6     $   174.0       (72.1%)         (1.5%)
SFAE            167.8         166.2         0.9%           3.4%
            ---------     ---------      ----------     ----------
Total       $   216.4     $   340.2       (36.4%)          2.4%

Merchandise categories with the best sales performances for SDSG (Parisian) in July were intimate apparel, accessories, women’s (large size) sportswear, dresses, and women’s better sportswear. Categories with the softest sales performances for SDSG (Parisian) in July were junior’s apparel, shoes, men’s furnishings, and women’s petite sportswear. Categories and businesses with the best sales performances for SFAE in July were women’s European and American designer collections, women’s and men’s contemporary apparel, women’s accessories, fragrances, Saks Direct, and Off 5th. Categories with the softest performances for SFAE in July were women’s bridge apparel, shoes, and designer evening apparel.

For the second quarter ended July 29, 2006 compared to last year’s second quarter ended July 30, 2005, owned sales were:

                                           Total                    
                                          Increase      Comparable
            This Year     Last Year      (Decrease)      Increase     
            ---------     ---------      ----------     ----------
SDSG        $   168.3     $   721.7        (76.7%)         1.0%       
SFAE            586.1         584.2          0.3%          3.4%   
            ---------     ---------      ----------     ----------
Total       $   754.4      $1,305.9        (42.2%)         2.9%

On a year-to-date basis, for the six months ended July 29, 2006 compared to the six months ended July 30, 2005, owned sales were:

                                                        Comparable
                                            Total        Increase
            This Year     Last Year      (Decrease)     (Decrease)
            ---------     ---------      ----------     ----------
SDSG        $   533.9      $1,562.1        (65.8%)        (0.8%)
SFAE          1,251.9       1,283.4         (2.4%)         0.4%
            ---------     ---------      ----------     ----------
Total       $ 1,785.8      $2,845.5        (37.2%)         0.0%

The company completed the sale of its SDSG Proffitt’s/McRae’s business to Belk, Inc. effective Midnight on July 2, 2005 and the sale of SDSG’s NDSG business to The Bon-Ton Stores, Inc. effective Midnight on March 4, 2006. Total and comparable store sales above reflect revenues of Proffitt’s/McRae’s and NDSG through those dates. Effective March 5, 2006, SDSG consists of Parisian and Club Libby Lu.