BENTONVILLE, Ark., Feb. 17 -- Wal-Mart Stores, Inc. (NYSE: WMT) reported record fourth quarter sales and earnings for the quarter ended January 31, 2005. Net sales were $82.2 billion, an increase of 10.4 percent over the fourth quarter of fiscal 2004. Income from continuing operations for the quarter was $3.2 billion, an increase of 16.2 percent from $2.7 billion in the fourth quarter of fiscal 2004. Earnings per share from continuing operations were $0.75, up from $0.63 per share in the same prior year quarter.

Net sales for the year ended January 31, 2005, were $285.2 billion, an increase of 11.3 percent over the year ended January 31, 2004. Income from continuing operations for fiscal 2005 increased 15.9 percent to a record $10.3 billion, up from $8.9 billion in fiscal 2004. Earnings per share from continuing operations for the year ended January 31, 2005, were $2.41, up from $2.03 in the prior year.

Lee Scott, President and CEO said, "In the year just completed, we added almost $29 billion in sales and topped $10 billion in net income for the first time in our history. It was a solid performance, but we can do better. With the help of our Associates, we can look forward to even better results in the current year."

     Net sales were as follows (dollars in billions):
                       Quarter Ended January 31,     Year Ended January 31,
                                        Percent                       Percent
                      2005      2004     Change    2005       2004     Change
    Wal-Mart Stores  $55.452   $50.646     9.5%  $191.826   $174.220    10.1%
    SAM'S CLUB         9.980     9.555     4.4%    37.119     34.537     7.5%
    International     16.784    14.293    17.4%    56.277     47.572    18.3%
      Total Company  $82.216   $74.494    10.4%  $285.222   $256.329    11.3%

Total U.S. comparable sales for the fourth quarter of fiscal 2005 increased 1.5 percent, which is represented by a 1.4 percent comp increase for Wal-Mart Stores and a 2.0 percent comp increase for SAM'S CLUB. Total U.S. comparable sales for fiscal 2005 were up 3.3 percent, which is comprised of a 2.9 percent comp increase for Wal-Mart Stores and a 5.8 percent comp increase for SAM'S CLUB.

Wal-Mart Stores Segment:

For the fourth quarter of fiscal 2005, the Wal-Mart Stores segment, including Supercenters and Neighborhood Markets, had operating income (income from continuing operations before unallocated corporate expenses, net interest expense, income taxes and minority interest) of $4.242 billion, an increase of 9.3 percent compared with $3.880 billion in the fourth quarter of fiscal 2004.

For fiscal 2005, the Wal-Mart Stores segment had operating income of $14.163 billion, an increase of 9.7 percent as compared with operating income of $12.916 billion in fiscal 2004.

SAM'S CLUB Segment:

The SAM'S CLUB segment had operating income for the fourth quarter of fiscal 2005 of $355 million, an increase of 3.5 percent compared with $343 million in the fourth quarter of fiscal 2004.

For fiscal 2005, the SAM'S CLUB segment had operating income of $1.280 billion, an increase of 13.7 percent as compared with operating income of $1.126 billion in fiscal 2004.

International Segment:

The International segment had operating income of $978 million for the most recent quarter, an increase of 13.5 percent compared with $862 million in the fourth quarter of fiscal 2004.

The International segment had operating income of $2.988 billion for fiscal 2005, an increase of 26.1 percent compared with $2.370 billion for fiscal 2004.

After this earnings release has been furnished to the SEC, a pre-recorded call offering additional comments on the quarter will be available to all investors. You may listen to this call by dialing 203-369-1090. The information included in this release and our pre-recorded phone call will be available on our web site at http://www.walmartstores.com, news, news releases, earnings and dividends.

Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the Company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. The Company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartfacts.com. Online merchandise sales are available at http://www.walmart.com.

This release contains a statement as to the view of our Chief Executive Officer regarding the balance of fiscal 2006 that Wal-Mart believes is a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. This forward-looking statement is subject to risks, uncertainties and other factors, domestically and internationally, including the cost of goods, competitive pressures, geopolitical conditions, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, changes in the cost of energy, labor and insurance, interest rate fluctuations and other capital market conditions and other risks. We discuss certain of these factors more fully in other of our filings with the SEC, including our last Annual Report on Form 10-K filed with the SEC, and this release should be read in conjunction with that Annual Report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, made with the SEC through the date of this report. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statement contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statement contained in this release. That forward- looking statement is made only as of the date of this report and we undertake no obligation to update it to reflect subsequent events or circumstances.

                            WAL-MART STORES, INC.
                      Consolidated Statements of Income
                                 (Unaudited)
                 (Amounts in millions except per share data)
                             Three Months Ended            Year Ended
                                 January 31,               January 31,
                              2005         2004         2005         2004
    Revenues:
      Net sales              $82,216      $74,494     $285,222     $256,329
      Other income, net          802          696        2,967        2,352
                              83,018       75,190      288,189      258,681
    Costs and expenses:
      Cost of sales           63,723       58,239      219,793      198,747
      Operating, selling,
       general and
       administrative
       expenses               13,997       12,205       51,305       44,909
      Operating income         5,298        4,746       17,091       15,025
    Interest:
      Debt                       284          217          934          729
      Capital leases              65           65          253          267
      Interest income            (52)         (81)        (201)        (164)
      Interest, net              297          201          986          832
    Income from continuing
     operations before
     income taxes and
     minority interest         5,001        4,545       16,105       14,193
    Provision for income
     taxes                     1,735        1,741        5,589        5,118
    Income from continuing
     operations before
     minority interest         3,266        2,804       10,516        9,075
    Minority interest           (102)         (82)        (249)        (214)
    Income from continuing
     operations                3,164        2,722       10,267        8,861
    Income from discontinued
     operation, net of tax       ---          ---          ---          193
      Net income              $3,164       $2,722      $10,267       $9,054
    Basic net income per
     common share:
      Net income per common
       share from continuing
       operations              $0.75        $0.63        $2.41        $2.03
      Net income per common
       share from discontinued
       operation                 ---          ---          ---         0.05
      Basic net income per
       common share            $0.75        $0.63        $2.41        $2.08
    Diluted net income per
     common share:
      Net income per common
       share from continuing
       operations              $0.75        $0.63        $2.41        $2.03
      Net income per common
       share from discontinued
       operation                 ---          ---          ---         0.04
      Diluted net income per
       common share            $0.75        $0.63        $2.41        $2.07
    Weighted-average number
     of common shares:
      Basic                    4,235        4,325        4,259        4,363
      Diluted                  4,242        4,334        4,266        4,373

Certain reclassifications have been made to the prior periods to conform to the current presentation.

                            WAL-MART STORES, INC.
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)
                            (Amounts in millions)
    SUBJECT TO RECLASSIFICATION
                                                   January 31,    January 31,
                                                       2005           2004
    ASSETS
    Cash and cash equivalents                         $5,488         $5,199
    Receivables                                        1,715          1,254
    Inventories                                       29,447         26,612
    Prepaid expenses and other                         1,814          1,356
      Total current assets                            38,464         34,421
    Property, plant and equipment, at cost            84,473         72,454
    Less accumulated depreciation                    (18,637)       (15,684)
      Property, plant and equipment, net              65,836         56,770
    Property under capital leases                      4,997          4,286
    Less accumulated amortization                     (1,838)        (1,673)
      Property under capital leases, net               3,159          2,613
    Goodwill                                          10,803          9,882
    Other assets and deferred charges                  2,362          2,079
      Total assets                                  $120,624       $105,765
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Commercial paper                                  $3,812         $3,267
    Accounts payable                                  22,099         19,785
    Accrued liabilities                               12,155         10,671
    Accrued income taxes                               1,224          1,377
    Long-term debt due within one year                 3,759          2,904
    Obligations under capital leases due within
     one year                                            210            196
      Total current liabilities                       43,259         38,200
    Long-term debt                                    20,087         17,102
    Long-term obligations under capital leases         3,582          2,997
    Deferred income taxes and other                    2,977          2,359
    Minority interest                                  1,502          1,484
    Common stock and capital in excess of par value    2,848          2,566
    Retained earnings                                 43,854         40,206
    Other accumulated comprehensive income             2,515            851
      Total shareholders' equity                      49,217         43,623
        Total liabilities and shareholders'
         equity                                     $120,624       $105,765

Certain reclassifications have been made to the prior period to conform to the current presentation.

                            WAL-MART STORES, INC.
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)
                            (Amounts in millions)
    SUBJECT TO RECLASSIFICATION
                                                          Year Ended
                                                          January 31,
                                                      2005           2004
    Cash flows from operating activities:
      Income from continuing operations              $10,267         $8,861
    Adjustments to reconcile net income to net
     cash provided by operating activities:
      Depreciation and amortization                    4,630          3,852
      Other operating activities                         473            350
      Changes in certain assets and liabilities,
       net of effects of acquisitions:
        Decrease (increase) in accounts receivable      (304)           373
        Increase in inventories                       (2,635)        (1,973)
        Increase in accounts payable                   1,694          2,587
        Increase in accrued liabilities                  919          1,896
    Net cash provided by operating activities of
     continuing operations                            15,044         15,946
    Net cash provided by operating activities of
     discontinued operation                              ---             50
    Net cash provided by operating activities         15,044         15,996
    Cash flows from investing activities:
      Payments for property, plant and equipment     (12,893)       (10,308)
      Disposal of assets                                 953            481
      Proceeds from sale of McLane                       ---          1,500
      Investment in international operations            (315)           (38)
      Other investing activities                         (96)            78
    Net cash used in investing activities of
     continuing operations                           (12,351)        (8,287)
    Net cash used in investing activities of
     discontinued operation                              ---            (25)
    Net cash used in investing activities            (12,351)        (8,312)
    Cash flows from financing activities:
      Increase (decrease) in commercial paper            544           (812)
      Proceeds from issuance of long-term debt         5,832          5,599
      Dividends paid                                  (2,214)        (1,569)
      Payment of long-term debt                       (2,131)        (3,541)
      Purchase of Company stock                       (4,549)        (5,046)
      Other financing activities                         (91)          (194)
    Net cash used in financing activities             (2,609)        (5,563)
    Effect of exchange rates on cash                     205            320
    Net increase in cash and cash equivalents            289          2,441
    Cash and cash equivalents at beginning of year *   5,199          2,758
    Cash and cash equivalents at end of period        $5,488         $5,199
     *  Includes cash and cash equivalents of discontinued operation of
        $22 million at January 31, 2003.

Certain reclassifications have been made to the prior period to conform to the current presentation.

SOURCE Wal-Mart Stores, Inc.

CONTACT: investor relations, Jay Fitzsimmons, +1-479-273-6445, or Pauline Tureman, +1-479-277-9558, or Investor Relations, +1-479-273-8446, or media relations, Gus Whitcomb, +1-479-273-4314, or Pre-recorded Conference Call, +1-203-369-1090, all of Wal-Mart Stores, Inc.

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