Wal-Mart Reports Record Third Quarter Sales and Earnings

BENTONVILLE, Ark., Nov. 14 -- Wal-Mart Stores, Inc. (NYSE: WMT) reported record third quarter sales and earnings for the quarter ended October 31, 2005. Net sales were $75.4 billion, an increase of 10.1 percent over the third quarter of fiscal 2005. Net income for the quarter was $2.4 billion, an increase of 3.8 percent from $2.3 billion in the third quarter of fiscal 2005. Earnings per share were $0.57, up from $0.54 per share in the same prior year quarter.

Net income for the quarter ended October 31, 2005, included three items netting to an unfavorable after tax impact of $80 million or $0.02 per share: approximately $40 million of costs incurred as a result of hurricanes Katrina, Rita and Wilma; and in our Wal-Mart Stores segment, $69 million of expense related to product warranty programs partially offset by $29 million of other income resulting from the Visa MasterCard antitrust litigation settlement.

Net sales for the nine months ended October 31, 2005, were $223.2 billion, an increase of 9.9 percent over the first nine months of fiscal 2005. Net income for the nine months ended October 31, 2005, increased 7.6 percent to a record $7.6 billion, up from $7.1 billion in the same prior year period. Diluted earnings per share for the nine months ended October 31, 2005, were $1.82, up from $1.66 in the same prior year period.

Lee Scott, President and CEO, said, "I am proud of the record results our associates achieved in the quarter while leading the relief efforts in the aftermath of three major hurricanes."

    Net sales were as follows (dollars in billions):

                           Three Months Ended           Nine Months Ended
                                October 31,                 October 31,
                                         Percent                      Percent
                          2005      2004  Change     2005       2004   Change
     Wal-Mart Stores    $50.243   $45.888   9.5%   $149.693   $136.373   9.8%
     SAM'S CLUB          10.019     9.082  10.3%     29.143     27.139   7.4%
     International       15.174    13.550  12.0%     44.319     39.493  12.2%
       Total Company    $75.436   $68.520  10.1%   $223.155   $203.005   9.9%

Total U.S. comparable sales for the quarter increased 3.8 percent, which is represented by a 2.9 percent comp increase for Wal-Mart Stores and an 8.1 percent comp increase for SAM'S CLUB. Total U.S. comparable sales for the nine month period were up 3.4 percent, which is comprised of a 3.1 percent comp increase for Wal-Mart Stores and a 5.0 percent comp increase for SAM'S CLUB.

Wal-Mart Stores Segment:

For the third quarter of fiscal 2006, the Wal-Mart Stores segment, including Supercenters, had segment operating income (income before net interest expense, income taxes, unallocated corporate overhead and minority interest) of $3.312 billion, an increase of 6.3 percent, compared with $3.115 billion in the third quarter of fiscal 2005.

For the nine months ended October 31, 2005, the Wal-Mart Stores segment, including Supercenters, had segment operating income of $10.610 billion, an increase of 6.9 percent, as compared with segment operating income of $9.921 billion in the similar period in the prior year.

SAM'S CLUB Segment:

The SAM'S CLUB segment had segment operating income for the third quarter of fiscal 2006 of $342 million, an increase of 11.8 percent, compared with $306 million in the third quarter of fiscal 2005.

For the nine months ended October 31, 2005, the SAM'S CLUB segment had segment operating income of $1.008 billion, an increase of 9.0 percent, as compared with segment operating income of $925 million in the similar period in the prior year.

International Segment:

The International segment had segment operating income of $797 million for the most recent quarter, an increase of 14.2 percent, compared with $698 million in the third quarter of fiscal 2005.

The International segment had segment operating income of $2.214 billion for the first nine months of fiscal 2006, an increase of 10.2 percent, compared with $2.009 billion for the similar period in fiscal 2005.

Guidance:

We expect earnings per share for the fourth quarter to come in between $0.82 to $0.86, and for the year, our forecast is $ 2.64 to $2.68.

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 in the investor information area on our web site at http://www.walmartstores.com under financial information, earnings and dividends.

Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. The company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, 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 statements as to management's forecast of earnings per share for the fourth quarter and fiscal year 2006 that Wal-Mart believes are "forward-looking statements" 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. These forward-looking statements are 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, weather conditions, changes in gasoline, diesel fuel and other energy costs, labor costs, health care costs and accident costs, 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 statements 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 statements contained in this release. These forward- looking statements are made only as of the date of this report and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.



                    WAL-MART STORES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
                 (Amounts in millions except per share data)

                               Three Months Ended       Nine Months Ended
                                   October 31,              October 31,
                                2005         2004         2005        2004

    Revenues:
      Net sales                $75,436      $68,520     $223,155     $203,005
      Other income, net            817          762        2,371        2,227
                                76,253       69,282      225,526      205,232

    Costs and expenses:
      Cost of sales             57,988       52,567      171,346      156,070
      Operating, selling,
       general and
       administrative expenses  14,216       12,931       41,511       37,369
      Operating income           4,049        3,784       12,669       11,793

    Interest:
      Debt                         348          248          847          649
      Capital leases                60           57          174          189
      Interest income              (59)         (64)        (170)        (149)
      Interest, net                349          241          851          689

    Income before income
     taxes and minority
     interest                    3,700        3,543       11,818       11,104
    Provision for income taxes   1,254        1,207        3,969        3,853
    Income before minority
     interest                    2,446        2,336        7,849        7,251
    Minority interest              (72)         (50)        (209)        (148)
         Net income             $2,374       $2,286       $7,640       $7,103

    Net income per common share:
      Basic                      $0.57        $0.54        $1.82        $1.67
      Diluted                    $0.57        $0.54        $1.82        $1.66

    Weighted-average number
     of common shares:
      Basic                      4,165        4,242        4,189        4,266
      Diluted                    4,169        4,249        4,194        4,274
Certain reclassifications have been made to the prior period to conform to the
                            current presentation.



                    WAL-MART STORES, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)
                            (Amounts in millions)

     SUBJECT TO RECLASSIFICATION
                                      October 31,    October 31,   January 31,
                                         2005            2004          2005
                ASSETS

    Cash and cash equivalents            $4,535          $4,639        $5,488
    Receivables                           1,846           1,418         1,715
    Inventories                          36,573          33,680        29,762
    Prepaid expenses and other            1,970           1,574         1,841
      Total current assets               44,924          41,311        38,806

    Property and equipment, at cost      91,781          80,988        84,037
    Less accumulated depreciation        20,883          18,545        18,637
      Property and equipment, net        70,898          62,443        65,400

    Property under capital leases, net
   3,086           2,627         2,718
    Goodwill                             10,467          10,191        10,803
    Other assets and deferred charges     2,424           2,485         2,427
        Total assets                   $131,799        $119,057      $120,154

       LIABILITIES AND SHAREHOLDERS' EQUITY
    Commercial paper                     $6,774          $7,569        $3,812
    Accounts payable                     25,115          23,113        21,987
    Dividends payable                       645             537           ---
    Accrued liabilities                  12,702          12,258        12,120
    Accrued income taxes                    650             525         1,281
    Long-term debt due within one year
   4,172           3,721         3,759
    Obligations under capital leases
     due within one year
                   257             206           223
      Total current liabilities          50,315          47,929        43,182

    Long-term debt                       23,249          19,099        20,087
    Long-term obligations
     under capital leases                 3,547           3,048         3,171
    Deferred income taxes and other       3,391           2,626         2,978
    Minority interest                     1,379           1,261         1,340

    Commitments and contingencies

    Common stock and capital in excess
     of par value                         2,925           2,723         2,848
    Retained earnings                    45,495          40,850        43,854
    Other accumulated comprehensive
     income                               1,498           1,521         2,694
      Total shareholders' equity         49,918          45,094        49,396
        Total liabilities
         and shareholders' equity      $131,799        $119,057      $120,154

Certain reclassifications have been made to the prior period to conform to the

                            current presentation.



                    WAL-MART STORES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in millions)

    SUBJECT TO RECLASSIFICATION
                                                           Nine Months Ended
                                                              October 31
                                                          2005          2004

    Cash flows from operating activities:
      Net income                                        $7,640         $7,103
      Adjustments to reconcile net income
       to net cash provided by operating activities:
         Depreciation and amortization                   3,514          3,161
         Other                                             567            311
         Changes in certain assets and liabilities,
          net of effects of acquisitions:

           Increase in accounts receivable                 (74)           (44)
           Increase in inventories                      (6,673)        (6,632)
           Increase in accounts payable                  3,182          3,099
           Increase (decrease) in accrued liabilities      (42)           450
             Net cash provided by operating activities   8,114          7,448

    Cash flows from investing activities:
      Payments for property and equipment              (10,405)        (9,260)
      Disposal of assets                                   739            742
      Investment in international operations              (307)          (315)
      Other investing activities                          (122)           (99)
             Net cash used in investing activities     (10,095)        (8,932)

    Cash flows from financing activities:
      Increase in commercial paper                       2,962          4,302
      Proceeds from issuance of long-term debt           6,940          4,831
      Dividends paid                                    (1,887)        (1,664)
      Payment of long-term debt                         (2,722)        (2,081)
      Purchase of Company stock                         (3,580)        (4,398)
      Other financing activities                          (615)          (105)
             Net cash provided by financing activities   1,098            885

    Effect of exchange rates on cash                       (70)            39
    Net decrease in cash and cash equivalents             (953)          (560)
    Cash and cash equivalents at beginning of year       5,488          5,199
    Cash and cash equivalents at end of period          $4,535         $4,639

Certain reclassifications have been made to the prior period to conform to the

                            current presentation.

SOURCE: Wal-Mart Stores, Inc.

CONTACT:

Investor Relations, +1-479-273-8446, or

Jay Fitzsimmons, +1-479-273-6445, or

Pauline Tureman, +1-479-277-9558, or

media relations, Marty Heires, +1-479-273-4314, all of Wal-Mart Stores, Inc.; or

Pre-recorded Conference Call, +1-203-369-1090

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