Wal-Mart Reports Record Third Quarter Sales and Earnings

BENTONVILLE, Ark., Nov. 14 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported sales and earnings for the quarter ended October 31, 2006. Net sales for the third quarter were $83.543 billion, an increase of 12.0 percent over the third quarter of fiscal 2006. Income from continuing operations for the quarter was $2.594 billion, an increase of 7.1 percent from $2.422 billion in the third quarter of fiscal 2006. Earnings per share from continuing operations were $0.62, up from $0.58 per share in the same prior year quarter.

"We are pleased that Wal-Mart again had record sales and earnings for the third quarter," said Lee Scott, Wal-Mart Stores, Inc. president and CEO. "In addition, we are pleased that we've seen improvements in gross margin in all three segments of our business.

"Although sales in the U.S. were softer than we hoped for in the third quarter, there are real opportunities in the fourth quarter to build on the momentum of the aggressive pricing strategy we have implemented in our stores for the holiday season," Scott added. "This season, no one will doubt Wal- Mart's leadership on price and value."

Earnings per share for the current quarter included a favorable after tax impact of $56 million, or approximately $0.01 per share, for property insurance-related gains reported as reductions in operating expenses.

Net sales for the nine months ended October 31, 2006, were $246.902 billion, an increase of 12.0 percent over the first nine months of fiscal 2006. Income from continuing operations for the nine months ended October 31, 2006, increased 5.8 percent to $8.239 billion, up from $7.787 billion in the same prior year period. Diluted earnings per share from continuing operations for the nine months ended October 31, 2006, were $1.97, up from $1.86 in the same prior year period.

During the third quarter, the Company completed the previously announced dispositions of its operations in South Korea and Germany. Beginning with the second quarter of fiscal 2007, these operations have been accounted for as discontinued operations.

    Among the third quarter highlights for the Company's operations are:
     *  Consolidated inventories were up 6.2 percent against a year-to-date
        sales increase of 12.0 percent.
     *  Within Wal-Mart Stores, sales per labor hour improved for the third
        quarter.  The U.S. Wal-Mart stores have now delivered labor
        productivity gains every quarter for the past two years.
     *  The launch and expansion of the $4 generic prescription program in
        pharmacies in U.S. locations in 27 states is successful and will
        expand to additional states in the near future.
     *  The International operations showed continued sales strength this
        quarter.



    Net sales were as follows (dollars in billions):

                  Three Months Ended October 31, Nine Months Ended October 31,
                                         Percent                      Percent
                       2006      2005    Change     2006      2005    Change
    Wal-Mart Stores  $54.179   $50.243    7.8%   $162.067  $149.693    8.3%
    Sam's Club        10.206    10.019    1.9%     30.453    29.143    4.5%
    International     19.158    14.334   33.7%     54.382    41.691   30.4%
      Total Company  $83.543   $74.596   12.0%   $246.902  $220.527   12.0%

The 33.7 percent and 30.4 percent increases in the International segment's net sales include the impact of three acquisitions that have occurred since the third 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 third quarter of fiscal 2007, the Wal-Mart Stores segment had operating income (income before net interest expense, income taxes, unallocated corporate overhead, minority interest and discontinued operations) of $3.639 billion, an increase of 9.9 percent, compared with $3.312 billion in the third quarter of fiscal 2006.

For the nine months ended October 31, 2006, the Wal-Mart Stores segment had operating income of $11.780 billion, an increase of 11.0 percent, compared with $10.610 billion in the same period in the prior year.

Sam's Club Segment:

The Sam's Club segment had operating income for the third quarter of fiscal 2007 of $356 million, an increase of 4.1 percent, compared with $342 million in the third quarter of fiscal 2006.

For the nine months ended October 31, 2006, the Sam's Club segment had operating income of $1.076 billion, an increase of 6.7 percent, as compared with $1.008 billion in the same period in the prior year.

International Segment:

The International segment had operating income from continuing operations of $997 million for the most recent quarter, an increase of 18.1 percent, compared with $844 million in the third quarter of fiscal 2006.

The International segment had operating income from continuing operations of $2.747 billion for the first nine months of fiscal 2007, an increase of 16.4 percent, compared with $2.360 billion for the same period in fiscal 2006.

Guidance:

The Company expects earnings per share from continuing operations for the fourth quarter to be between $0.88 and $0.92, resulting in the full year Company forecast for earnings per share from continuing operations of $2.85 to $2.89.

Comparable Sales:

Total U.S. comparable store sales for the quarter increased 1.5 percent, which is represented by a 1.5 percent increase for Wal-Mart Stores and a 1.8 percent increase for Sam's Club. Total U.S. comparable store sales for the nine-month period were up 2.3 percent, which is comprised of a 2.2 percent increase for Wal-Mart Stores and a 2.8 percent increase for Sam's Club.

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 October 31, 2006, by -1.8 and -0.3 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 October 31, 2006, would have been flat and 1.2 percent, respectively. For the nine months ended October 31, 2006, fuel sales had no impact on the comparable store sales figures. Additional information regarding comparative store sales reconciliations for prior periods is available in the investor information area on the Company's web site referenced in the following paragraph.

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".

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, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico 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 statements as to the Company's expectation for its earnings per share from continuing operations for the fourth quarter of fiscal 2007, a statement as to the Company's forecast of its earnings per share from continuing operations for all of fiscal 2007 and a statement regarding expansion of our generic prescription program to other states that Wal-Mart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and are 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 and our most recent Quarterly Report on Form 10-Q filed with the SEC, and this release should be read in conjunction with that Annual Report on Form 10-K and that Quarterly Report on Form 10-Q, 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 the expected and forecasted 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 any 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)


    SUBJECT TO RECLASSIFICATION

                             Three Months Ended        Nine Months Ended
                                 October 31,               October 31,
                             2006         2005         2006         2005
    Revenues:
      Net sales            $83,543      $74,596     $246,902     $220,527
      Other income, net        924          801        2,670        2,322
                            84,467       75,397      249,572      222,849

    Costs and expenses:
      Cost of sales         63,765       57,325      188,587      169,267
      Operating, selling,
       general and
       administrative
       expenses             16,237       13,974       46,920       40,762
      Operating income       4,465        4,098       14,065       12,820

    Interest:
      Debt                     434          347        1,188          847
      Capital leases            55           60          192          173
      Interest income          (65)         (57)        (196)        (165)
      Interest, net            424          350        1,184          855

    Income from continuing
     operations before income
     taxes and minority
     interest                4,041        3,748       12,881       11,965
    Provision for income
     taxes                   1,363        1,253        4,388        3,969
    Income from continuing
     operations before
     minority interest       2,678        2,495        8,493        7,996
    Minority interest          (84)         (73)        (254)        (209)
    Income from continuing
     operations              2,594        2,422        8,239        7,787
    Discontinued operations,
     net of tax                 53          (48)        (894)        (147)
        Net income          $2,647       $2,374       $7,345       $7,640

    Net income per common share:
      Basic income per share
       from continuing
       operations            $0.62        $0.58        $1.98        $1.86
      Basic income (loss) per
       share from
       discontinued
       operations             0.01        (0.01)       (0.22)       (0.04)
      Basic net income per
       share                 $0.63        $0.57        $1.76        $1.82

      Diluted income per
       share from continuing
       operations            $0.62        $0.58        $1.97        $1.86
      Diluted income (loss)
       per share from
       discontinued
       operations             0.01        (0.01)       (0.21)       (0.04)
      Diluted net income per
       share                 $0.63        $0.57        $1.76        $1.82

    Weighted-average
     number of common shares:
      Basic                  4,169        4,165        4,168        4,189

      Diluted                4,173        4,169        4,172        4,194

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,
                                      2006            2005          2006
                  ASSETS
    Cash and cash equivalents        $5,908          $4,334        $6,193
    Receivables                       2,477           1,770         2,575
    Inventories                      38,531          36,272        31,910
    Prepaid expenses and other        2,707           1,842         2,468
    Current assets of
     discontinued operations            ---             706           679
        Total current assets         49,623          44,924        43,825

    Property, plant and equipment,
     at cost                        107,073          90,015        95,537
    Less accumulated depreciation   (24,159)        (20,391)      (20,937)
        Property, plant and
         equipment, net              82,914          69,624        74,600

    Property under capital leases     5,421           5,009         5,392
    Less accumulated amortization    (2,313)         (2,075)       (2,127)
        Property under capital
         leases, net                  3,108           2,934         3,265

    Goodwill                         13,257          10,379        12,097
    Other assets and deferred
     charges                          2,217           2,053         2,516
    Non-current assets of
     discontinued operations            ---           1,887         1,884
        Total assets               $151,119        $131,801      $138,187

       LIABILITIES AND SHAREHOLDERS' EQUITY
    Commercial paper                 $7,968          $6,774        $3,754
    Accounts payable                 29,263          24,835        25,101
    Dividends payable                   607             644             -
    Accrued liabilities              14,283          12,514        13,274
    Accrued income taxes                252             650         1,340
    Long-term debt due within
     one year                         5,490           4,172         4,595
    Obligations under capital
     leases due within one year         300             247           284
    Current liabilities of
     discontinued operations            ---             481           477
        Total current liabilities    58,163          50,317        48,825

    Long-term debt                   24,154          23,249        26,429
    Long-term obligations
     under capital leases             3,622           3,467         3,667
    Non-current liabilities of
     discontinued operations            ---             133           129
    Deferred income taxes and other   4,785           3,338         4,501
    Minority interest                 1,632           1,379         1,465

    Commitments and contingencies

    Common stock and capital in
     excess of par value              3,237           2,925         3,013
    Retained earnings                53,738          45,495        49,105
    Other accumulated comprehensive
     income                           1,788           1,498         1,053
      Total shareholders' equity     58,763          49,918        53,171
        Total liabilities and
         shareholders' equity      $151,119        $131,801      $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
                                                         Nine Months Ended
                                                             October 31,
                                                        2006           2005
    Cash flows from operating activities:
      Income from continuing operations               $8,239         $7,787
      Adjustments to reconcile net income to
       net cash provided by operating
       activities:
        Depreciation and amortization                  4,013          3,459
        Other                                            427            596
        Changes in certain assets and liabilities,
         net of effects of acquisitions:
           Decrease (increase) in accounts receivable    103            (96)
           Increase in inventories                    (6,198)        (6,682)
           Increase in accounts payable                3,501          3,206
           Increase (decrease) in accrued liabilities     25            (29)
             Net cash provided by operating activities
              of continuing operations                10,110          8,241
             Net cash used in operating activities
              of discontinued operations                 (45)          (127)
             Net cash provided by operating
              activities                              10,065          8,114

    Cash flows from investing activities:
      Payments for property, plant and equipment     (11,417)       (10,380)
      Disposal of assets                                 262            736
      Proceeds from disposal of certain
       international operations, net                     610            ---
      Investment in international operations             (68)          (307)
      Other investing activities                        (142)          (122)
             Net cash used in investing activities
              of continuing operations               (10,755)       (10,073)
             Net cash provided by (used in)
              investing activities of discontinued
              operations                                  44            (22)
             Net cash used in investing activities   (10,711)       (10,095)

    Cash flows from financing activities:
      Increase in commercial paper                     4,200          2,962
      Proceeds from issuance of long-term debt         3,282          6,940
      Dividends paid                                  (2,118)        (1,887)
      Payment of long-term debt                       (4,847)        (2,722)
      Purchase of Company stock                          ---         (3,580)
      Other financing activities                        (424)          (615)
         Net cash provided by financing activities        93          1,098

    Effect of exchange rates on cash                      47           (70)
    Net decrease in cash and cash equivalents           (506)          (953)
    Cash and cash equivalents at beginning of year (A) 6,414          5,488
    Cash and cash equivalents at end of period (B)    $5,908         $4,535

     (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 $201
         million at October 31, 2005.

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

SOURCE  Wal-Mart Stores, Inc.
    -0-                             11/14/2006
    /CONTACT:  investor relations, +1-479-273-8446, or Carol Schumacher,
+1-479-277-1498, or Pauline Tureman, +1-479-277-9558, or media relations, John
Simley, +1-800-331-0085, or Pre-recorded Conference Call, +1-203-369-1090, all
of Wal-Mart Stores, Inc./
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    /Web site:  http://www.walmartstores.com
                http://www.walmartstores.com/news
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                http://www.walmartfacts.com /
    (WMT)

CO:  Wal-Mart Stores, Inc.
ST:  Arkansas
IN:  REA
SU:  ERN CCA ERP

AP-CT
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0862 11/14/2006 06:30 EST http://www.prnewswire.com