Walmart reports Q3 FY17 EPS of $0.98

The company now expects full-year GAAP EPS of $4.34 to $4.49, Adjusted full-year EPS(1) of $4.20 to $4.35

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Diluted EPS was $0.98. Currency negatively impacted EPS by approximately $0.03.
Total revenue was $118.2 billion, an increase of 0.7%. On a constant currency basis¹, total revenue was $120.3 billion, an increase of 2.5%.
Walmart U.S. comp sales increased 1.2%, driven by a traffic increase of 0.7%. Neighborhood Market comp sales increased approximately 5.2%.
Net sales at Walmart International were $28.4 billion, a decrease of 4.8%. Excluding currency¹ impacts, net sales were $30.5 billion, an increase of 2.4%.

Globally, on a constant currency basis, e-commerce sales and GMV increased 20.6% and 16.8%, respectively, representing continued acceleration. Excluding Yihaodian, GMV increased 28.6%.

Consolidated operating income decreased 10.4%. As expected, investments in people and technology, as well as currency exchange rate fluctuations negatively impacted results. Excluding last year's lease accounting benefit of $156 million, operating income decreased 7.9%.

Year-to-date operating cash flow was $19.6 billion and free cash flow¹ was $12.2 billion, both approximately $5 billion higher than last year led by improved working capital management.

The company returned just under $3 billion to shareholders during the quarter through dividends of $1.5 billion and share repurchases of $1.4 billion.

_{(Amounts in millions, except as noted)}

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Key Results

	Q3 FY17	Q3 FY16	$ Change	% Change
Revenue	$118,179	$117,408	$771	0.7%
Revenue (constant currency)¹	$120,321	$117,408	$2,913	2.5%
Operating income	$5,119	$5,714	-$595	-10.4%
Operating income (constant currency)¹	$5,253	$5,714	-$461	-8.1%

Free Cash Flow	YTD	$ Change	Shareholders Returns	Q3 FY17	% Change
Operating cash flow	$19,644	$4,639	Dividends	$1,549	-1.4%
Capital expenditures	$7,459	-$764	Share repurchases²	$1,402	220.8%
Free cash flow¹	$12,185	$5,403	Total	$2,951	47.0%

_{1 See additional information at the end of this release regarding non-GAAP financial measures.}
_{2 $11.3 billion remaining of $20 billion authorization approved in October 2015. The company repurchased approximately 20 million shares in Q3 FY17.}

Guidance

The company's guidance for earnings per share for fiscal year 2017 assumes currency exchange rates remain at current levels. Additionally, this updated guidance assumes that the full year effective tax rate will be between 31% and 32%.

Fiscal year 2017 GAAP EPS: $4.34 to $4.49 (previously $4.29 to $4.49)
Fiscal year 2017 adjusted EPS1: $4.20 to $4.35 (previously $4.15 to $4.35)
Comp sales for the 13-week period ending Jan. 27, 2017²:
Walmart U.S.: +1.0% to +1.5%
Sam's Club (ex. fuel): +1.0% to +1.5%

Walmart U.S.

	Q3 FY17	Q3 FY16	$ Change	% Change
Net Sales	$74,550	$72,712	$1,838	2.5%
Comp Sales³	1.2%	1.5%	-30 bps	N/A
Traffic	0.7%	1.7%	-100 bps	N/A
Ticket	0.5%	-0.2%	70 bps	N/A
E-commerce	~50 bps	~15 bps	~35 bps	N/A
Operating income	$3,999	$4,506	-$507	-11.3%

Walmart International

	Q3 FY17	Q3 FY16	$ Change	% Change
Net sales	$28,390	$29,811	-$1,421	-4.8%
Net sales (constant currency)¹	$30,527	$29,811	$716	2.4%
Operating income	$1,354	$1,338	$16	1.2%
Operating income (constant currency)¹	$1,488	$1,338	$150	11.2%

Sam's Club

	Q3 FY17	Q3 FY16	$ Change	% Change
Net sales	$14,236	$14,075	$161	1.1%
Comp sales (ex. fuel)^1,3	1.4%	0.4%	100 bps	N/A
Traffic	-0.5%	-0.3%	-20 bps	N/A
Ticket	1.9%	0.7%	120 bps	N/A
E-commerce	~60 bps	~60 bps	~0 bps	N/A
Operating income	$396	$539	-$143	-26.5%

_{1 See additional information at the end of this release regarding non-GAAP financial measures.}
_{2 Compared to 13-week period ended Jan. 29, 2016.}
_{3 13-week period ended Oct. 28, 2016, compared to 13-week period ended Oct. 30, 2015.}

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,593 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482.1 billion, Walmart employs approximately 2.4 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.

Investor Relations contact
Steve Schmitt (479) 258-7172

Media Relations contact
Randy Hargrove (800) 331-0085

Along with this press release, Walmart makes available a recorded call with executive leaders and a financial presentation to review the business results, provide strategic updates, and comment on expectations for the future. We provide that call in both audio form and in a written transcript. Details on accessing the call are as follows:

877-523-5612 (U.S. and Canada)
201-689-8483 (other countries)
Passcode: 9256278 (Walmart)
MP3 @ stock.walmart.com

The call is archived at stock.walmart.com.

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