Retailer Saks Incorporated reported a 9.2% increase in total company comparable store sales for the month of October. Total sales decreased 46.7% for the month to $232.8 million from $436.7 million last year due to the sale of several parts of its Department Store Group.

The Company completed the sale of its Saks Department Store Group (“SDSG”) Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005, the sale of SDSG's Northern Department Store Group (NDSG) business to The Bon-Ton Stores, Inc. effective Midnight on March 4, 2006, and the sale of SDSG's Parisian business to Belk, Inc. effective Midnight on September 30, 2006. Total and comparable store sales below reflect revenues of those businesses through the respective dates listed. Beginning October 1, 2006, the company's business consists of Saks Fifth Avenue Enterprises (“SFAE”) and Club Libby Lu. Due to immateriality, beginning on October 1, 2006, Club Libby Lu sales have been included with SFAE sales rather than SDSG sales. For prior periods, Club Libby Lu sales are still reflected in SDSG sales.

For the four weeks ended October 28, 2006 compared to the four weeks ended October 29, 2005, owned sales were:

                                                  Total
                                                 Increase   Comparable
                        This Year   Last Year   (Decrease)   Increase
                        ----------  ----------  ----------  ----------
SFAE                       $232.8      $210.6        10.5%        9.2%
SDSG                          0.0       226.1     (100.0%)        N/A
                        ----------  ----------  ----------  ----------
Total                      $232.8      $436.7      (46.7%)        9.2%

At SFAE, three days of a four-day “Double Points” proprietary credit card event were shifted from October last year into September this year, negatively affecting October 2006 sales. October 2006 sales were enhanced by strong customer response to SFAE's existing promotional events.

Merchandise categories and businesses with the best sales performances for SFAE in October were women's classic and contemporary bridge apparel; women's designer “gold range” apparel; outerwear; evening dresses; women's shoes and handbags; men's sportswear, contemporary apparel, shoes, and accessories; fine and fashion jewelry; fragrances; and Saks Direct. Categories with the softest performances for SFAE in October were women's designer collections, designer evening wear, bridal, and children's apparel.

For the third quarter ended October 28, 2006 compared to the third quarter ended October 29, 2005, owned sales were:

Total
Increase Comparable
This Year Last Year (Decrease) Increase
———- ———- ———- ———-
SFAE $683.6 $629.6 8.6% 8.8%
SDSG 119.7 678.0 (82.3%) 2.1%
———- ———- ———- ———-
Total $803.3 $1,307.6 (38.6%) 7.8%

On a year-to-date basis, for the nine months ended October 28, 2006 compared to the nine months ended October 29, 2005, owned sales were:

                                                  Total     Comparable
                                                 Increase    Increase
                        This Year   Last Year   (Decrease)  (Decrease)
                        ----------  ----------  ----------  ----------
SFAE                     $1,935.6    $1,913.0         1.2%        3.2%
SDSG                        653.6     2,240.1      (70.8%)      (0.2%)
                        ----------  ----------  ----------  ----------
Total                    $2,589.2    $4,153.1      (37.7%)        2.4%

Saks Incorporated currently operates Saks Fifth Avenue Enterprises (SFAE), which consists of 53 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The company also operates 62 Club Libby Lu specialty stores.