LOS ANGELES, Aug 22, 2006 / --- Retailer Saks Incorporated announced yesterday the resignation for Andrew Jennings from his post as President of Saks Fifth Avenue Enterprises (SFAE), a division of Saks Incorporated.

According to the announcement, ‘Jennings who joined SFAE as President in February 2004, has made a personal decision to leave SFAE and return overseas, where he spent the majority of his distinguished 30-year retail career.

Jennings resignation come at the heels of Saks Incorporated posting a net lost of $51.9 million for the second quarter of 2006, as posted in its financial statement filed last August 15.

In Saks Incorporated’s filing, it reported that SFAE experienced an operating loss of $33.3 million for the quarter, a 22% improvement from the $42.8 million loss posted during the same period last year.

SFAE's comparable store sales rose 3.4% while its gross margin rate was essentially flat compared to last year.

SFAE operates of 54 Saks Fifth Avenue luxury department stores, 50 Saks Off 5th outlet stores, and saks.com.

Meanwhile, Saks Incorporated’s other division Saks Department Store Group (SDSG), which operates 38 Parisian specialty department stores and 62 Club Libby Lu specialty stores, generated an operating loss of $1.0 million compared to an operating loss of $0.9 million during the same period last year.

SDSG's second quarter consolidated performance reflected a comparable store sales increase of 1.0%.

SDSG and in turn Saks Incorporated is currently in negotiations to sell its Parisian business to Belk for $285 million in cash as announced this month. The transaction is expected to be completed in the third fiscal quarter of 2006.

During Jennings tenure two-year tenure at SFAE, the division was on the red, but he was able improve sales dramatically, making the company’s net loss smaller than the prior year.

As Stephen I. Sadove, Chief Executive Officer of Saks Incorporated commented on Jennings departure, “I respect Andrew's decision, and he has graciously agreed to a month-long transition to make this a smooth and orderly process. Andrew has made many contributions to SFAE, which has helped position the Company for renewed growth and profitability. Andrew's deep operating experience and disciplined management style have made him a valued colleague. We appreciate his contributions to the business and wish him the very best.”

Saks Incorporated is not planning to replace Jennings. Sadove will assume responsibility for the majority of Jennings's direct reports.