EXHIBIT 12.1
Saks Incorporated and Subsidiaries
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
39 Weeks 39 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended
October 31, November 1, January 31, February 1,
Ratio of Earnings to Fixed Charges 1998(A) 1997 1998 1997
- ---------------------------------- ----------- ------------ ------------ ------------
EARNINGS:
Pre-tax income (loss) from continuing
operations and before
extraordinary items and
cumulative effect of changes
in accounting methods (91,271) 93,026 221,811 144,576
Fixed charges 124,993 128,976 172,321 157,227
Preferred stock dividends - - - (1,305)
Capitalized interest (4,178) (4,760) (6,297) (2,803)
------------ --------- ---------- ----------
Total Earnings 29,544 217,242 387,835 297,695
============ ========= ========== ==========
FIXED CHARGES:
Interest expense 76,425 86,876 113,685 114,881
Capitalized interest 4,178 4,760 6,297 2,803
Portion of rental expense (one-third) 44,390 37,340 52,339 38,238
Preferred stock dividends - - - 1,305
------------ --------- ---------- ----------
Total Fixed Charges 124,993 128,976 172,321 157,227
============ ========= ========== ==========
Ratio of Earnings to Fixed Charges 0.2 1.7 2.3 1.9
============ ========= ========== ==========
Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended
February 3, January 28, January 29,
1996 1995 1994(B)
----------- ---------- ----------
EARNINGS:
Pre-tax income (loss) from continuing
operations and before extraordinary
items and cumulative effect of changes
in accounting methods 51,239 132,563 (366,980)
Fixed charges 180,224 152,935 129,616
Preferred stock dividends (3,197) (2,777) -
Capitalized interest (2,920) (2,571) (1,567)
----------- ---------- ----------
Total Earnings 225,346 280,150 (238,931)
=========== ========== ==========
FIXED CHARGES:
Interest expense 141,725 117,065 99,205
Capitalized interest 2,920 2,571 1,567
Portion of rental expense (one-third) 32,383 30,522 28,844
Preferred stock dividends 3,197 2,777 -
----------- ---------- ----------
Total Fixed Charges 180,225 152,935 129,616
=========== ========== ==========
Ratio of Earnings to Fixed Charges 1.3 1.8 -
=========== ========== ==========
(A) For the 39 week period ended October 31, 1998, the Company reported a pre-
tax loss from continuing operations of $91,271, primarily due to merger charges
and balance sheet restructuring charges of approximately $177,000 incurred in
the third quarter related to its acquisition of Saks Holdings, Inc.
(B) For the fiscal year ended January 29, 1994, the Company reported a pre-tax
loss from continuing operations of $366,980 due to Saks reporting a pre-tax loss
of $231,283 as well as Carson Pirie Scott filing for and emerging from Chapter
11 bankruptcy during fiscal 1993. Net income after extraordinary items and
changes in accounting methods for fiscal 1993 was $230,091. The ratio of
earnings to fixed charges calculation for fiscal year ended January 29, 1994,
indicated a fixed charge coverage deficiency of $368,547.