Saks June Comps Increase 4.7%

Retailer Saks Incorporated announced that for the five weeks ended July 1, 2006 compared to the five weeks ended July 2, 2005, total Company comparable store sales increased 4.7%, and total sales decreased 43.8%. By segment, comparable store sales increased 2.0% for SDSG and increased 5.3% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.
For the five weeks ended July 1, 2006 compared to the five weeks
ended July 2, 2005, owned sales were:

                                             Total
                                            Increase      Comparable
          This Year       Last Year        (Decrease)      Increase
          ----------      ----------       ----------     ----------
SDSG      $    63.8       $   307.0           (79.2%)           2.0%
SFAE          243.0           239.1             1.6%            5.3%
          ----------      ----------       ----------     ----------
Total     $   306.8       $   546.1           (43.8%)           4.7%

Merchandise categories with the best sales performances for SDSG (Parisian) in June were dresses, children’s apparel, intimate apparel, cosmetics, and men’s sportswear. Categories with the softest sales performances for SDSG (Parisian) in June were junior’s apparel, men’s furnishings, and women’s moderate sportswear. Categories and businesses with the best sales performances for SFAE in June were women’s and men’s contemporary apparel, women’s designer apparel, shoes, handbags, and Saks Direct. Categories with the softest performances for SFAE in June were fashion jewelry, men’s sportswear, and intimate apparel.

On a quarter-to-date basis, for the two months ended July 1, 2006
compared to the two months ended July 2, 2005, owned sales were:

                                             Total
                                            Increase      Comparable
           This Year      Last Year        (Decrease)      Increase
          ----------      ----------       ----------     ----------
SDSG      $   119.7       $   547.7           (78.1%)           2.1%
SFAE          418.3           417.9             0.1%            3.4%
          ----------      ----------       ----------     ----------
Total     $   538.0       $   965.6           (44.3%)           3.1%

On a year-to-date basis, for the five months ended July 1, 2006
compared to the five months ended July 2, 2005, owned sales were:

                                             Total        Comparable
          This Year       Last Year        (Decrease)     (Decrease)
          ----------      ----------       ----------     ----------
SDSG      $   485.3        $1,388.1           (65.0%)          (0.7%)
SFAE        1,084.1         1,117.1            (3.0%)          (0.1%)
          ----------      ----------       ----------     ----------
Total     $ 1,569.4        $2,505.2           (37.4%)          (0.3%)

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.