Retailer Saks Incorporated has made a preliminary determination that the previously announced $4 per share special cash dividend will not include any return of capital to shareholders and will therefore be taxable to shareholders at the dividend tax rate. This preliminary determination is subject to confirmation through the completion of a formal evaluation process which is expected to take several months.
The special dividend will be payable on May 1st 2006 to shareholders of record as of April 14th 2006. Because of the magnitude of the special cash dividend, the New York Stock Exchange has determined that the ex-dividend date will be May 2nd 2006, the business day following the payable date for the special cash dividend.
Shareholders of record on the April 14th 2006 record date who subsequently sell their shares of common stock prior to May 2nd 2006 will also be selling their right to receive the special cash dividend. Shareholders are encouraged to consult with their financial advisors regarding the circumstances of their individual tax situation and the specific implications of the deferral of the ex-dividend date.
Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. It also operates 39 Parisian stores and 57 Club Libby Lu specialty stores.
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