Wal-Mart Reports Second Quarter Sales and Earnings

BENTONVILLE, Ark., Aug. 15 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported sales and earnings for the quarter ended July 31, 2006. Net sales for the second quarter were $84.524 billion, an increase of 11.3 percent over the second quarter of fiscal 2006. Income from continuing operations for the quarter was $2.984 billion, an increase of 4.6 percent from $2.853 billion in the second quarter of fiscal 2006. Earnings per share from continuing operations were $0.72, up from $0.68 per share in the same prior year quarter. During the quarter, the Company entered into agreements to sell its operations in South Korea and Germany. These operations are now accounted for as discontinued operations. In connection with the sale of its German operations, the Company has recorded a loss on the sale of $863 million, included in discontinued operations. Both the sale of the South Korean and German operations are subject to regulatory approval.

Net sales for the six months ended July 31, 2006, were $163.359 billion, an increase of 11.9 percent over the first six months of fiscal 2006. Income from continuing operations for the six months ended July 31, 2006, increased 5.2 percent to $5.645 billion, up from $5.365 billion in the same prior year period. Earnings per share from continuing operations for the six months ended July 31, 2006, were $1.35, up from $1.28 in the same prior year period. Earnings per share from continuing operations for the six months ended July 31, 2005, were favorably impacted by two items totaling $145 million after tax or $0.03 per share: an increase due to favorable tax resolutions of $77 million and positive legal developments of $68 million after-tax.

"Our sales and earnings from continuing operations for the quarter are up, and we continue to make progress on inventory," said Lee Scott, Wal-Mart Stores, Inc. president and CEO. "Wal-Mart's every day low prices and value are more important than ever to customers. Some of the same issues affecting our customers - higher utility costs and gas prices - are impacting many corporations, including Wal-Mart. We find it encouraging that we continue to grow market share in food and consumables during this time."

Scott added that the Company continues its focus on growth and return on invested capital.

"We also are transforming our stores through remodeling, expanded merchandise offerings and customer service initiatives," he said.

    Net sales were as follows (dollars in billions):



                          Three Months Ended            Six Months Ended
                               July 31,                     July 31,
                                        Percent                      Percent
                       2006      2005    Change     2006      2005    Change
    Wal-Mart Stores  $55.389   $51.809    6.9%   $107.888   $99.449    8.5%
    SAM'S CLUB        10.472     9.969    5.0%     20.247    19.124    5.9%
    International     18.663    14.154   31.9%     35.224    27.358   28.8%
      Total Company  $84.524   $75.932   11.3%   $163.359  $145.931   11.9%

Total U.S. comparable sales for the quarter increased 1.7 percent, which is represented by a 1.5 percent increase for Wal-Mart Stores and a 2.6 percent increase for SAM'S CLUB. Total U.S. comparable sales for the six-month period were up 2.7 percent, which is comprised of a 2.6 percent increase for Wal-Mart Stores and a 3.4 percent increase for SAM'S CLUB.

The 31.9 percent and 28.8 percent increase in the International segment's net sales includes the impact of three acquisitions that have occurred since the second quarter of fiscal 2006. These transactions include:

     * the purchase of an additional stake in The Seiyu, Ltd., of which Wal-
       Mart now owns approximately 53%.
     * the purchase of Sonae Distribuicao Brasil, S.A., now referred to as
       Southern Brazil.
     * the purchase of a majority stake in Central American Retail Holding
       Company, or CARHCO, of which the Company now owns 51%.  CARHCO is now
       operated as Wal-Mart Central America.

    Wal-Mart Stores Segment:

For the second quarter of fiscal 2007, the Wal-Mart Stores segment, including supercenters, had segment operating income (income before net interest expense, income taxes, unallocated corporate overhead, minority interest and discontinued operations) of $4.159 billion, an increase of 4.2 percent, compared with $3.992 billion in the second quarter of fiscal 2006.

For the six months ended July 31, 2006, the Wal-Mart Stores segment had segment operating income of $8.141 billion, an increase of 11.6 percent, as compared with segment operating income of $7.298 billion in the same period in the prior year.

SAM'S CLUB Segment:

The SAM'S CLUB segment had segment operating income for the second quarter of fiscal 2007 of $402 million, an increase of 8.4 percent, compared with $371 million in the second quarter of fiscal 2006.

For the six months ended July 31, 2006, the SAM'S CLUB segment had segment operating income of $720 million, an increase of 8.1 percent, as compared with segment operating income of $666 million in the same period in the prior year.

International Segment:

The International segment had segment operating income from continuing operations of $997 million for the most recent quarter, an increase of 24.8 percent, compared with $799 million in the second quarter of fiscal 2006.

The International segment had segment operating income from continuing operations of $1.751 billion for the first six months of fiscal 2007, an increase of 15.5 percent, compared with $1.516 billion for the same period in fiscal 2006.

Guidance:

The Company expects earnings per share from continuing operations for the third quarter to be between $0.59 and $0.63. For the year, the Company's forecast for earnings per share from continuing operations continues to be $2.88 to $2.95 per share.

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. Callers may listen to this call by dialing 203-369-1090. The information included in this release and the pre-recorded phone call will be available in the investor information area on the Company's web site at http://www.walmartstores.com under "Investors."

Comparable store sales that are presented in this release exclude the impact of fuel sales in the SAM'S CLUB segment. Fuel sales impacted the SAM'S CLUB and total U.S. comparable store sales figures for the quarter ended July 31, 2006, by 1.0 and 0.1 percentage points, respectively, and for the six months ended July 31, 2006, by 0.8 and 0.1 percentage points, respectively. Including the impact of fuel sales, the SAM'S CLUB and total U.S. comparable store sales figures for the quarter ended July 31, 2006, would have been 3.6 percent and 1.8 percent, respectively, and for the six-months ended July 31, 2006, would have been 4.2 percent and 2.8 percent, respectively. Additional information regarding comparative store sales reconciliations for prior periods is available in the investor information area on the Company's website referenced in the preceding paragraph.

Wal-Mart Stores, Inc. operates Wal-Mart discount 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 Stock Exchange and NYSE Arca, formerly the Pacific Stock Exchange, 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 Company's expectation for its earnings per share from continuing operations for the third quarter of fiscal 2007 and a statement as to the Company's forecast of its earnings per share from continuing operations for all of fiscal 2007 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, changes in the cost of gasoline, diesel fuel, other energy, transportation, utilities, labor and health care, accident costs, casualty and other insurance costs, interest rate fluctuations, capital market conditions, weather conditions, storm-related damage to the Company's facilities, regulatory matters and other risks. The Company discusses certain of these factors more fully in its additional filings with the SEC, including the 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 of the Company's other filings, including current reports on Form 8-K, made with the SEC through the date of this release. The Company urges 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, the Company's actual results may differ materially from historical results or from the expected and forecast results discussed in the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this release, and the Company undertakes no obligation to update either of them 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         Six Months Ended
                                    July 31,                  July 31,
                               2006         2005         2006         2005
    Revenues:
      Net sales              $84,524      $75,932     $163,359     $145,931
      Other income, net          906          765        1,746        1,521
                              85,430       76,697      165,105      147,452

    Costs and expenses:
      Cost of sales           64,585       58,089      124,822      111,942
      Operating, selling,
       general and
       administrative
       expenses               15,741       13,878       30,683       26,788
      Operating income         5,104        4,730        9,600        8,722

    Interest:
      Debt                       387          303          754          500
      Capital leases              69           61          137          113
      Interest income            (63)         (58)        (131)        (108)
      Interest, net              393          306          760          505

    Income from continuing
     operations before income
     taxes and minority
     interest                  4,711        4,424        8,840        8,217
    Provision for income
     taxes                     1,636        1,503        3,025        2,716
    Income from continuing
     operations before
     minority interest         3,075        2,921        5,815        5,501
    Minority interest            (91)         (68)        (170)        (136)
    Income from continuing
     operations                2,984        2,853        5,645        5,365
    Discontinued operations     (901)         (48)        (947)         (99)
        Net income            $2,083       $2,805       $4,698       $5,266

    Basic and diluted net
     income per common share:
      Basic and diluted
       income per share from
       continuing operations   $0.72        $0.68        $1.35        $1.28
      Basic and diluted loss
       per share from
       discontinued           $(0.22)      $(0.01)      $(0.22)      $(0.03)
      Basic and diluted net
       income per share        $0.50        $0.67        $1.13        $1.25

    Weighted-average number
     of common shares:
      Basic                    4,168        4,175        4,167        4,201
      Diluted                  4,172        4,180        4,171        4,206
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

                                      July 31,        July 31,     January 31,
                                        2006            2005          2006
                ASSETS
    Cash and cash equivalents          $6,386          $5,452        $6,193
    Receivables                         2,522           1,596         2,575
    Inventories                        32,087          30,611        31,910
    Prepaid expenses and other          3,307           2,006         2,468
    Current assets of discontinued
     operations                         1,870             728           679
      Total current assets             46,172          40,393        43,825

    Property, plant and equipment,
     at cost                          103,121          87,173        95,537
    Less accumulated depreciation      23,198          19,854        20,937
      Property, plant and equipment,
       net                             79,923          67,319        74,600

    Property under capital leases,
     net                                3,259           2,873         3,265
    Goodwill                           13,269          10,324        12,097
    Other assets and deferred
     charges                            2,165           1,944         2,516
    Non-current assets of
     discontinued operations              ---           1,912         1,884
        Total assets                 $144,788        $124,765      $138,187

       LIABILITIES AND SHAREHOLDERS'
                 EQUITY
    Commercial paper                   $6,072          $9,054        $3,754
    Accounts payable                   26,023          22,360        25,101
    Dividends payable                   1,305           1,268           ---
    Accrued liabilities                13,028          11,693        13,274
    Accrued income taxes                  700           1,021         1,340
    Long-term debt due within
     one year
                                        6,235           3,080         4,595
    Obligations under capital
     leases due within one year
                                          196             223           284
    Current liabilities of
     discontinued operations              580             465           477
      Total current liabilities        54,139          49,164        48,825

    Long-term debt                     24,099          20,209        26,429
    Long-term obligations under
     capital leases                     3,883           3,417         3,667
    Non-current liabilities of
     discontinued operations              ---             136           129
    Deferred income taxes and other     4,741           2,739         4,501
    Minority interest                   1,554           1,379         1,465

    Commitments and contingencies

    Common stock and capital in
     excess of par value                3,165           2,874         3,013
    Retained earnings                  51,091          43,122        49,105
    Other accumulated comprehensive
     income                             2,116           1,725         1,053
      Total shareholders' equity       56,372          47,721        53,171
        Total liabilities and
         shareholders' equity        $144,788        $124,765      $138,187

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
                                                          Six Months Ended
                                                               July 31,
                                                           2006       2005
    Cash flows from operating activities:
      Income from continuing operations                   $5,645     $5,365
      Adjustments to reconcile net income to
       net cash provided by operating activities:
         Depreciation and amortization                     2,642      2,285
         Other                                              (443)      (193)
         Changes in certain assets and liabilities,
          net of effects of acquisitions:
            Decrease in accounts receivable                  134         50
            Decrease (increase) in inventories               134     (1,118)
            Increase in accounts payable                     224        795
            Decrease in accrued liabilities               (1,030)      (545)
              Net cash provided by operating
               activities of continuing operations         7,306      6,639
              Net cash used in operating activities
               of discontinued operations                    (46)      (171)
              Net cash provided by operating activities    7,260      6,468

    Cash flows from investing activities:
      Payments for property, plant and equipment          (6,812)    (6,455)
      Disposal of assets                                      94        372
      Investment in international operations                 (68)       ---
      Other investing activities                             (18)       (85)
              Net cash used in investing activities
               of continuing operations                   (6,804)    (6,168)
              Net cash provided by investing activities
               of discontinued operations                     45         37
              Net cash used in investing activities       (6,759)    (6,131)

    Cash flows from financing activities:
      Increase in commercial paper                         2,297      5,242
      Proceeds from issuance of long-term debt             1,932      2,000
      Dividends paid                                      (1,408)    (1,262)
      Payment of long-term debt                           (2,797)    (2,041)
      Purchase of Company stock                              ---     (3,580)
      Other financing activities                            (393)      (422)
              Net cash used in financing activities         (369)       (63)

    Effect of exchange rates on cash                          71        (89)
    Net increase in cash and cash equivalents                203        185
    Cash and cash equivalents at beginning of year (A)     6,414      5,488
    Cash and cash equivalents at end of period (B)        $6,617     $5,673

     (A)  Includes cash and cash equivalents of discontinued operations of
          $221 million and $383 million at January 31, 2006 and 2005,
          respectively.
     (B)  Includes cash and cash equivalents of discontinued operations of
          $231 million and $221 million at July 31, 2006 and 2005,
          respectively.

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
Carol Schumacher, +1-479-277-1498, or
Pauline Tureman, +1-479-277-9558, or
Media Relations, Sarah Clark, +1-479-273-4314, or
Pre-recorded Conference Call, +1-203-369-1090,
all of Wal-Mart Stores, Inc.

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Web site:
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