812900--4/10/2006--SAKS_INC

related topics
{operation, natural, condition}
{acquisition, growth, future}
{condition, economic, financial}
{operation, international, foreign}
{financial, litigation, operation}
{competitive, industry, competition}
{product, market, service}
{capital, credit, financial}
Poor economic conditions affect consumer spending and may significantly harm the Company s business. The Company s business and results of operations are subject to a broad range of uncertainties arising out of world events. The Company s business and results of operations may be adversely affected by weather conditions and natural disasters. The Company s business is intensely competitive and increased or new competition could have a material adverse effect on the Company. The Company faces risks associated with consumer preferences and fashion trends. Any failure by the Company to manage divestitures and other significant transactions successfully could harm the Company s financial results, business and prospects. The Company faces a number of risks in opening new stores. The loss of, or disruption in, the Company s centralized distribution centers would have a material adverse effect on the Company s business and operations. The Company is dependent on external funding sources, which may not make available sufficient funds when the Company needs them. The Company believes that its previously disclosed internal investigations, and related inquiries by the SEC and the Office of the United States Attorney for the Southern District of New York, adversely affected the Company s results of operations for its 2005 fiscal year, which adverse effect could continue.

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