Saks 8-K Other Events

Exhibit 99.1

SAKS INCORPORATED

CONSOLIDATED INCOME STATEMENTS

(Dollar amounts in thousands, except per share amounts)

	(UNAUDITED) RESTATED
	Q1 2004					Q2 2004					July YTD 2004					Q3 2004					October YTD 2004					Q4 2004					FY 2004
Net sales	$	1,540,193		100.0	%	$	1,350,357		100.0	%	$	2,890,550		100.0	%	$	1,481,645		100.0	%	$	4,372,195		100.0	%	$	2,065,082		100.0	%	$	6,437,277		100.0	%
Cost of sales (includes buying and distribution)		940,236		61.0	%		845,995		62.6	%		1,786,231		61.8	%		904,485		61.0	%		2,690,716		61.5	%		1,304,744		63.2	%		3,995,460		62.1	%
Gross margin		599,957		39.0	%		504,362		37.4	%		1,104,319		38.2	%		577,160		39.0	%		1,681,479		38.5	%		760,338		36.8	%		2,441,817		37.9	%
Selling, general and administrative expenses		388,184		25.2	%		369,209		27.3	%		757,393		26.2	%		412,877		27.9	%		1,170,270		26.8	%		444,388		21.5	%		1,614,658		25.1	%
Other operating expenses:
Property and equipment rentals		50,565		3.3	%		48,846		3.6	%		99,411		3.4	%		53,701		3.6	%		153,112		3.5	%		50,339		2.4	%		203,451		3.2	%
Depreciation & other amortization		54,712		3.6	%		56,847		4.2	%		111,559		3.9	%		56,162		3.8	%		167,721		3.8	%		61,424		3.0	%		229,145		3.6	%
Taxes other than income taxes		43,814		2.8	%		38,520		2.9	%		82,334		2.8	%		40,411		2.7	%		122,745		2.8	%		41,322		2.0	%		164,067		2.5	%
Store pre-opening costs		53		0.0	%		893		0.1	%		946		0.0	%		3,453		0.2	%		4,399		0.1	%		121		0.0	%		4,520		0.1	%
Impairments and dispositions		4,059		0.3	%		3,312		0.2	%		7,371		0.3	%		26,415		1.8	%		33,786		0.8	%		(2,035	)	-0.1	%		31,751		0.5	%
Operating income		58,570		3.8	%		(13,265	)	-1.0	%		45,305		1.6	%		(15,859	)	-1.1	%		29,446		0.7	%		164,779		8.0	%		194,225		3.0	%
Other income (expense):
Interest expense		(27,200	)	-1.8	%		(28,761	)	-2.1	%		(55,961	)	-1.9	%		(28,400	)	-1.9	%		(84,361	)	-1.9	%		(29,674	)	-1.4	%		(114,035	)	-1.8	%
Other income (expense), net		387		0.0	%		2,088		0.2	%		2,475		0.1	%		472		0.0	%		2,947		0.1	%		1,101		0.1	%		4,048		0.1	%
Income before provision for income taxes		31,757		2.1	%		(39,938	)	-3.0	%		(8,181	)	-0.3	%		(43,787	)	-3.0	%		(51,968	)	-1.2	%		136,206		6.6	%		84,238		1.3	%
Provision for income taxes		11,590		0.8	%		(14,606	)	-1.1	%		(3,016	)	-0.1	%		(13,397	)	-0.9	%		(16,413	)	-0.4	%		39,566		1.9	%		23,153		0.4	%
Net income	$	20,167		1.3	%	$	(25,332	)	-1.9	%	$	(5,165	)	-0.2	%	$	(30,390	)	-2.1	%	$	(35,555	)	-0.8	%	$	96,640		4.7	%	$	61,085		0.9	%
Basic earnings per common share:	$	0.14				$	(0.18	)			$	(0.04	)			$	(0.22	)			$	(0.25	)			$	0.71				$	0.44
Diluted earnings per common share:	$	0.14				$	(0.18	)			$	(0.04	)			$	(0.22	)			$	(0.25	)			$	0.68				$	0.42
Weighted average common shares:
Basic		141,027					141,591					141,309					138,249					140,289					137,011					139,470
Diluted		146,496					141,591					141,309					138,249					140,289					141,516					144,034

SAKS INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

	(UNAUDITED) RESTATED
	May 1, 2004		July 31, 2004		October 30, 2004		January 29, 2005
ASSETS
Current assets
Cash and cash equivalents	$	571,551	$	180,587	$	81,095	$	257,104
Merchandise inventories		1,530,183		1,459,714		1,841,916		1,516,271
Other current assets		172,753		172,645		147,931		127,082
Deferred income taxes, net		71,344		96,570		87,215		178,558
Total current assets		2,345,831		1,909,516		2,158,157		2,079,015
Property and equipment, net		2,090,269		2,075,745		2,069,558		2,046,839
Goodwill and intangibles, net		326,341		325,907		325,561		323,761
Deferred income taxes, net		133,683		125,529		151,909		166,364
Other assets		91,680		90,926		89,268		88,100
TOTAL ASSETS	$	4,987,804	$	4,527,623	$	4,794,453	$	4,704,079
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Trade accounts payable	$	444,781	$	387,008	$	593,208	$	378,394
Accrued expenses and other current liabilities		697,090		388,416		465,951		553,911
Current portion of long-term debt		148,744		76,506		77,708		7,715
Total current liabilities		1,290,615		851,930		1,136,867		940,020
Long-term debt		1,346,750		1,348,204		1,426,510		1,346,222
Other long-term liabilities		319,276		320,319		311,347		333,420
Total shareholders’ equity		2,031,163		2,007,170		1,919,729		2,084,417
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,987,804	$	4,527,623	$	4,794,453	$	4,704,079

SAKS INCORPORATED

SEGMENT INFORMATION

(Dollars In Thousands)

	(UNAUDITED) RESTATED
	Three Months Ended May 1, 2004			Three Months Ended July 31, 2004			Six Months Ended July 31, 2004			Three Months Ended October 30, 2004			Nine Months Ended October 30, 2004			Three Months Ended January 29, 2005			Fiscal Year Ended January 29, 2005
Net Sales:
Saks Department Stores Group	$	857,841		$	770,350		$	1,628,191		$	846,571		$	2,474,762		$	1,225,192		$	3,699,954
Saks Fifth Avenue Enterprises		682,352			580,007			1,262,359			635,074			1,897,433			839,890			2,737,323
	$	1,540,193		$	1,350,357		$	2,890,550		$	1,481,645		$	4,372,195		$	2,065,082		$	6,437,277
Operating Income:
Saks Department Stores Group	$	28,874		$	3,801		$	32,675		$	3,753		$	36,428		$	124,461		$	160,889
Saks Fifth Avenue Enterprises		45,548			(6,150	)		39,398			21,362			60,760			58,037			118,797
Items not allocated		(15,852	)		(10,916	)		(26,768	)		(40,974	)		(67,742	)		(17,719	)		(85,461	)
	$	58,570		$	(13,265	)	$	45,305		$	(15,859	)	$	29,446		$	164,779		$	194,225
Depreciation and Amortization:
Saks Department Stores Group	$	29,819		$	31,012		$	60,831		$	30,846		$	91,677		$	34,328		$	126,005
Saks Fifth Avenue Enterprises		24,346			25,289			49,635			24,548			74,183			26,314			100,497
Other		547			546			1,093			768			1,861			782			2,643
	$	54,712		$	56,847		$	111,559		$	56,162		$	167,721		$	61,424		$	229,145
Total Assets:
Saks Department Stores Group	$	2,230,082		$	2,172,826		$	2,172,826		$	2,410,140		$	2,410,140		$	2,158,863		$	2,158,863
Saks Fifth Avenue Enterprises		1,755,065			1,716,425			1,716,425			1,819,432			1,819,432			1,701,046			1,701,046
Other		1,002,657			638,372			638,372			564,881			564,881			844,170			844,170
	$	4,987,804		$	4,527,623		$	4,527,623		$	4,794,453		$	4,794,453		$	4,704,079		$	4,704,079

SAKS INCORPORATED

SUMMARY OF CHARGES AND GAINS

(Dollars In Thousands)

	(UNAUDITED) RESTATED
	Three Months Ended May 1, 2004			Three Months Ended July 31, 2004			Six Months Ended July 31, 2004			Three Months Ended October 30, 2004			Nine Months Ended October 30, 2004			Three Months Ended January 29, 2005			Fiscal Year Ended January 29, 2005
Summary of (Charges) and Gains:
Impairments and Dispositions - In Normal Course	$	(4,058	)	$	(3,312	)	$	(7,370	)	$	(1,923	)	$	(9,293	)	$	(2,762	)	$	(12,055	)
SFAE Store Closings:
Impairments and Dispositions		—			—			—			(24,491	)		(24,491	)		7,196			(17,295	)
Gross Margin (markdowns)		—			—			—			—			—			(7,136	)		(7,136	)
SG&A (principally severance)		—			—			—			(1,153	)		(1,153	)		(2,558	)		(3,711	)
East NC Store Closings:
Impairments and Dispositions		—			—			—			—			—			(2,400	)		(2,400	)
Gross Margin (markdowns)		—			—			—			—			—			(505	)		(505	)
Income Taxes:
Income Tax Effect of Above Items		1,481			1,209			2,690			10,063			12,753			2,979			15,732
Tax Reserves											(2,555	)		(2,555	)		—			(2,555	)
Net, After-Tax Certain Gains and Charges	$	(2,577	)	$	(2,103	)	$	(4,680	)	$	(20,059	)	$	(24,739	)	$	(5,186	)	$	(29,925	)
Cash/Non-Cash Summary of (Charges) and Gains:
Cash Gains and Charges	$	—		$	—		$	—		$	(3,153	)	$	(3,153	)	$	8,153		$	5,000
Non-Cash Gains and Charges		(4,058	)		(3,312	)		(7,370	)		(26,968	)		(34,338	)		(16,318	)		(50,656	)
Income Tax Effect		1,481			1,209			2,690			10,062			12,752			2,979			15,731
Net, After-Tax Certain Gains and Charges	$	(2,577	)	$	(2,103	)	$	(4,680	)	$	(20,059	)	$	(24,739	)	$	(5,186	)	$	(29,925	)

SAKS INCORPORATED

Consolidated Income Statements

(Dollar amounts in thousands, except per share amounts)

	(UNAUDITED) RESTATED
	Q1 2003					Q2 2003					July YTD 2003					Q3 2003					October YTD 2003					Q4 2003					FY 2003
Net sales	$	1,381,860		100.0	%	$	1,237,104		100.0	%	$	2,618,964		100.0	%	$	1,467,147		100.0	%	$	4,086,111		100.0	%	$	1,968,944		100.0	%	$	6,055,055		100.0	%
Cost of sales (includes buying and distribution)		863,359		62.5	%		780,932		63.1	%		1,644,291		62.8	%		899,317		61.3	%		2,543,608		62.3	%		1,217,850		61.9	%		3,761,458		62.1	%
Gross margin		518,501		37.5	%		456,172		36.9	%		974,673		37.2	%		567,830		38.7	%		1,542,503		37.7	%		751,094		38.1	%		2,293,597		37.9	%
Selling, general and administrative expenses		337,240		24.4	%		328,905		26.6	%		666,145		25.4	%		390,073		26.6	%		1,056,218		25.8	%		433,165		22.0	%		1,489,383		24.6	%
Other operating expenses:
Property and equipment rentals		45,351		3.3	%		48,201		3.9	%		93,552		3.6	%		53,431		3.6	%		146,983		3.6	%		49,191		2.5	%		196,174		3.2	%
Depreciation & other amortization		56,000		4.1	%		55,174		4.5	%		111,174		4.2	%		58,040		4.0	%		169,214		4.1	%		59,105		3.0	%		228,319		3.8	%
Taxes other than income taxes		38,241		2.8	%		37,474		3.0	%		75,715		2.9	%		36,278		2.5	%		111,993		2.7	%		37,108		1.9	%		149,101		2.5	%
Store pre-opening costs		1,360		0.1	%		1,170		0.1	%		2,530		0.1	%		2,895		0.2	%		5,425		0.1	%		37		0.0	%		5,462		0.1	%
Impairments and dispositions		2,278		0.2	%		(4,232	)	-0.3	%		(1,954	)	-0.1	%		2,293		0.2	%		339		0.0	%		7,811		0.4	%		8,150		0.1	%
Integration charges		465		0.0	%		70		0.0	%		535		0.0	%		(557	)	0.0	%		(22	)	0.0	%		(40	)	0.0	%		(62	)	0.0	%
Operating income		37,566		2.7	%		(10,590	)	-0.9	%		26,976		1.0	%		25,377		1.7	%		52,353		1.3	%		164,717		8.4	%		217,070		3.6	%
Other income (expense):
Interest expense		(30,757	)	-2.2	%		(29,834	)	-2.4	%		(60,591	)	-2.3	%		(28,393	)	-1.9	%		(88,984	)	-2.2	%		(28,388	)	-1.4	%		(117,372	)	-1.9	%
Loss on extinguishment of debt		—		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%		(10,506	)	-0.5	%		(10,506	)	-0.2	%
Other income (expense), net		6,270		0.5	%		1,166		0.1	%		7,436		0.3	%		1,397		0.1	%		8,833		0.2	%		(3,829	)	-0.2	%		5,004		0.1	%
Income before provision for income taxes		13,079		0.9	%		(39,258	)	-3.2	%		(26,179	)	-1.0	%		(1,619	)	-0.1	%		(27,798	)	-0.7	%		121,994		6.2	%		94,196		1.6	%
Provision for income taxes		4,946		0.4	%		(14,355	)	-1.2	%		(9,409	)	-0.4	%		(10,636	)	-0.7	%		(20,045	)	-0.5	%		41,877		2.1	%		21,832		0.4	%
Net income	$	8,133		0.6	%	$	(24,903	)	-2.0	%	$	(16,770	)	-0.6	%	$	9,017		0.6	%	$	(7,753	)	-0.2	%	$	80,117		4.1	%	$	72,364		1.2	%
Basic earnings per common share:	$	0.06				$	(0.18	)			$	(0.12	)			$	0.07				$	(0.06	)			$	0.58				$	0.52
Diluted earnings per common share:	$	0.06				$	(0.18	)			$	(0.12	)			$	0.06				$	(0.06	)			$	0.56				$	0.51
Weighted average common shares:
Basic		143,233					140,498					141,866					136,894					140,289					138,669					139,824
Diluted		144,794					140,498					142,646					140,950					140,289					143,734					142,921

SAKS INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

	(UNAUDITED) RESTATED
	May 3, 2003		August 2, 2003		November 1, 2003		January 31, 2004
ASSETS
Current assets
Cash and cash equivalents	$	505,809	$	391,076	$	278,459	$	365,873
Merchandise inventories		1,396,988		1,343,511		1,738,456		1,438,452
Other current assets		185,507		157,118		151,856		151,223
Deferred income taxes, net		82,241		88,095		80,597		76,602
Total current assets		2,170,545		1,979,800		2,249,368		2,032,150
Property and equipment, net		2,144,005		2,137,483		2,141,670		2,117,579
Goodwill and intangibles, net		317,252		325,185		327,139		326,775
Deferred income taxes, net		105,262		132,230		139,080		120,342
Other assets		56,304		55,613		57,284		83,671
TOTAL ASSETS	$	4,793,368	$	4,630,311	$	4,914,541	$	4,680,517
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Trade accounts payable	$	428,291	$	384,475	$	610,188	$	349,150
Accrued expenses and other current liabilities		416,748		364,736		422,710		447,494
Current portion of long-term debt		7,371		81,478		81,500		151,884
Total current liabilities		852,410		830,689		1,114,398		948,528
Long-term debt		1,324,847		1,241,455		1,249,175		1,125,637
Other long-term liabilities		369,143		386,147		376,267		313,016
Total shareholders’ equity		2,246,968		2,172,020		2,174,701		2,293,336
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,793,368	$	4,630,311	$	4,914,541	$	4,680,517

SAKS INCORPORATED

SEGMENT INFORMATION

(Dollars In Thousands)

	(UNAUDITED) RESTATED
	Three Months Ended May 3, 2003			Three Months Ended August 2, 2003			Six Months Ended August 2, 2003			Three Months Ended November 1, 2003			Nine Months Ended November 1, 2003			Three Months Ended January 31, 2004			Fiscal Year Ended January 31, 2004
Net Sales:
Saks Department Stores Group	$	799,151		$	750,784		$	1,549,935		$	866,066		$	2,416,001		$	1,203,737		$	3,619,738
Saks Fifth Avenue Enterprises		582,709			486,320			1,069,029			601,081			1,670,110			765,207			2,435,317
	$	1,381,860		$	1,237,104		$	2,618,964		$	1,467,147		$	4,086,111		$	1,968,944		$	6,055,055
Operating Income:
Saks Department Stores Group	$	21,397		$	12,106		$	33,503		$	21,480		$	54,983		$	120,069		$	175,052
Saks Fifth Avenue Enterprises		26,364			(19,824	)		6,540			24,198			30,738			72,404			103,142
Items not allocated		(10,195	)		(2,872	)		(13,067	)		(20,301	)		(33,368	)		(27,756	)		(61,124	)
	$	37,566		$	(10,590	)	$	26,976		$	25,377		$	52,353		$	164,717		$	217,070
Depreciation and Amortization:
Saks Department Stores Group	$	30,124		$	29,687		$	59,811		$	29,875		$	89,686		$	32,800		$	122,486
Saks Fifth Avenue Enterprises		24,091			24,279			48,370			27,279			75,649			26,960			102,609
Other		1,785			1,208			2,993			886			3,879			(655	)		3,224
	$	56,000		$	55,174		$	111,174		$	58,040		$	169,214		$	59,105		$	228,319
Total Assets:
Saks Department Stores Group	$	2,160,358		$	2,112,792		$	2,112,792		$	2,386,337		$	2,386,337		$	2,141,691		$	2,141,691
Saks Fifth Avenue Enterprises		1,681,102			1,674,650			1,674,650			1,827,181			1,827,181			1,727,440			1,727,440
Other		951,908			842,869			842,869			701,023			701,023			811,386			811,386
	$	4,793,368		$	4,630,311		$	4,630,311		$	4,914,541		$	4,914,541		$	4,680,517		$	4,680,517