Saks Total Company Comps Up 3.2% For Sept.

Retailer Saks Incorporated announced that for the five weeks of fiscal September total company comparable store sales increased 3.2%, while total sales decreased 10.0%. By segment, comparable store sales increased 4.3% for SDSG and increased 2.0% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

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 in current year sales through June 2005 (fiscal month ended July 2, 2005). Beginning in July 2005 (fiscal month beginning July 3, 2005), Proffitt's/McRae's sales are excluded from total company and comparable sales.

For the five weeks ended October 1, 2005 compared to the five weeks ended October 2, 2004, owned sales were:

                                                   Total    Comparable
                           This Year  Last Year  (Decrease)  Increase
                           ---------- ---------- ---------- ----------
SDSG                       $   262.5  $   309.4     (15.2%)       4.3%
SFAE                           250.0      259.8     ( 3.8%)       2.0%
                            ---------  --------- ---------- ----------
Total                      $   512.5  $   569.2     (10.0%)       3.2%

At SFAE, three days of a “Double Points” proprietary credit card event were shifted from September last year into October this year, negatively affecting September 2005 sales.

The Saks Fifth Avenue store in New Orleans suffered substantial damage related to Hurricane Katrina and is closed indefinitely. Consequently, this store has been removed from the comparable store sales calculation. Total sales for September 2005 were negatively affected by approximately $4.5 million due to the store closing.

Merchandise categories with the best sales performances for SDSG in September were furniture, cosmetics, accessories, intimate apparel, junior's apparel, and shoes. Categories with the softest sales performances for SDSG in September were women's moderate sportswear, women's petite sportswear, and home. Categories with the best sales performances for SFAE in September were women's and men's contemporary sportswear, men's accessories, handbags, and women's European designer collections. Categories with the softest performances for SFAE in September were private brand, women's bridge apparel, and Salon Z (women's large sizes).

For the two months ended October 1, 2005 compared to the two months ended October 2, 2004, owned sales were:

                                                   Total    Comparable
                           This Year  Last Year  (Decrease)  Increase
                           ---------- ---------- ---------- ----------
SDSG                       $   451.8  $   557.0     (18.9%)       0.3%
SFAE                           419.1      425.8     ( 1.6%)       3.3%
                            ---------  --------- ---------- ----------
Total                      $   870.9  $   982.8     (11.4%)       1.7%

On a year-to-date basis, for the eight months ended October 1, 2005 compared to the eight months ended October 2, 2004, owned sales were:

                                                   Total    Comparable
                                                  Increase   Increase
                           This Year  Last Year  (Decrease) (Decrease)
                           ---------- ---------- ---------- ----------
SDSG                       $ 2,014.0  $ 2,177.1      (7.5%)     (0.1%)
SFAE                         1,702.4    1,674.3        1.7%       4.5%
                            ---------  --------- ---------- ----------
Total                      $ 3,716.4  $ 3,851.4      (3.5%)       2.0%

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 181 department stores under the names of Parisian, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 53 Club Libby Lu specialty stores.