Wal-Mart Reports Record Fourth Quarter Sales and Earnings

BENTONVILLE, Ark., Feb. 20 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported record sales and earnings for the quarter ended Jan. 31, 2007. Net sales for the fourth quarter were $98.090 billion, an increase of 10.9 percent over the fourth quarter of fiscal year 2006. Income from continuing operations for the quarter was $3.940 billion, an increase of 8.8 percent from $3.621 billion in the fourth quarter of fiscal year 2006.

Earnings per share from continuing operations were $0.95, up from $0.87 per share in the same prior year quarter. Fourth quarter earnings in fiscal 2007 were favorably impacted by a $98 million net tax benefit recorded in the Company's tax provision. This $0.02 per share net benefit arose primarily from the resolution of certain tax matters related to transfer pricing and the renewal of the Work Opportunity Tax Credit.

Net sales for the fiscal year ended Jan. 31, 2007, were $344.992 billion, an increase of 11.7 percent over fiscal year 2006. Income from continuing operations for the fiscal year ended Jan. 31, 2007, increased 6.7 percent to $12.178 billion, up from $11.408 billion in the prior year. Diluted earnings per share from continuing operations for the fiscal year ended Jan. 31, 2007, were $2.92, up from $2.72 in the prior year.

The dispositions of the Company's operations in South Korea and Germany, completed during the third quarter of fiscal year 2007, continue to be accounted for as discontinued operations in the accompanying financial statements.

"We are extremely pleased to close fiscal year 2007 with both record sales and earnings," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "The Wal-Mart associates around the world stepped up and delivered a wonderful fourth quarter and I am encouraged by their achievements as we head into the current fiscal year. Our Company's performance for the fiscal year was helped by a strong fourth quarter. Even if you take into account the discontinued operations, we still had record results."

Scott said that Wal-Mart customers around the world benefited from low prices.

"It's a reaffirmation of the proposition that's synonymous with Wal-Mart - - saving people money so they can live better," said Scott. "Sam Walton started our Company in 1962 with this simple principle. And this is the mission that drives our strategy around the world today."



    Net sales were as follows (dollars in billions):

                      Three Months Ended Jan 31,   Fiscal Year Ended Jan 31,
                                        Percent                      Percent
                       2007      2006    Change     2007      2006    Change
    Wal-Mart Stores  $64,228   $60,218    6.7%   $226,294  $209,910    7.8%
    Sam's Club        11,128    10,655    4.4%     41,582    39,798    4.5%
    International     22,734    17,545   29.6%     77,116    59,237   30.2%
    Total Company    $98,090   $88,418   10.9%   $344,992  $308,945   11.7%


The 29.6 percent and 30.2 percent increases in the International segment's net sales include the impact of three acquisitions that 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, and
     *  the purchase of a majority stake in Central American Retail Holding
        Company, or CARHCO, of which the Company now owns 51 percent.  CARCHO
        is now operated as Wal-Mart Central America.

    Wal-Mart Stores Segment:

For the fourth 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 $5.248 billion, an increase of 11.3 percent, compared with $4.714 billion in the fourth quarter of fiscal 2006.

For the fiscal year ended Jan. 31, 2007, the Wal-Mart Stores segment had operating income of $17.029 billion, an increase of 11.1 percent, compared with $15.324 billion for fiscal 2006.

Sam's Club Segment:

The Sam's Club segment had operating income for the fourth quarter of fiscal 2007 of $435 million, an increase of 15.4 percent, compared with $377 million in the fourth quarter of fiscal 2006.

For the fiscal year ended Jan. 31, 2007, the Sam's Club segment had operating income of $1.512 billion, an increase of 9.2 percent, as compared with $1.385 billion for fiscal 2006.

International Segment:

The International segment had operating income from continuing operations of $1.513 billion for the most recent quarter, an increase of 32.0 percent, compared with $1.146 billion in the fourth quarter of fiscal year 2006.

The International segment had operating income from continuing operations of $4.259 billion for fiscal 2007, an increase of 21.5 percent, compared with $3.506 billion for the same period in fiscal 2006.

Guidance:

For the first quarter, the Company expects U.S. comparable store sales to increase in the range of 1 to 3 percent. The Company expects earnings per share from continuing operations for the first quarter of fiscal 2008 to come in between $0.68 and $0.71, and for fiscal year 2008, the forecast is $3.15 to $3.23.

Comparable Sales:

Total U.S. comparable store sales for the fourth quarter of fiscal year 2007 increased 1.6 percent, which is represented by a 1.3 percent increase for Wal-Mart Stores and a 3.1 percent increase for Sam's Club. Total U.S. comparable store sales for the fiscal year were 2.1 percent, which is comprised of a 1.9 percent increase for Wal-Mart Stores and a 2.9 percent increase for Sam's Club. The comparable store sales exclude the impact of fuel sales in the Sam's Club segment.

Including the impact of fuel sales, the Sam's Club and total U.S. comparable store sales figures for the quarter ended Jan. 31, 2007, would have been 1.9 and 1.4 percent, respectively. The Sam's Club and total U.S. comparable store sales figures for the year ended Jan. 31, 2007, would have been 2.5 and 2.0 percent, respectively.

Fuel sales impacted the Sam's Club and total U.S. comparable store sales figures for the quarter ended Jan. 31, 2007, by (1.2) and (0.2) percentage points, respectively.

Fuel sales impacted the Sam's Club and total U.S. comparable store sales figures for the fiscal year ended Jan. 31, 2007, by (0.4) and (0.1) percentage points, respectively. 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/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 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 comparable store sales estimate for the first quarter of fiscal year 2008, its expectation for its earnings per share from continuing operations for the first quarter of fiscal year 2008 and its forecast of its earnings per share from continuing operations for all of its fiscal year 2008 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 its last annual report on Form 10-K and its 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, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this release. The forward-looking statements made in this release are made only as of the date of this release, and the Company undertakes no obligation to update 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     Fiscal Year Ended
                                          Jan. 31,              Jan. 31,
                                      2007       2006       2007        2006
    Revenues:
      Net sales                     $98,090    $88,418   $344,992    $308,945
      Membership and other income       988        834      3,658       3,156
                                     99,078     89,252    348,650     312,101

    Costs and expenses:
      Cost of sales                  75,565     68,382    264,152     237,649
      Operating, selling,
       general and administrative
       expenses                      17,080     14,978     64,001      55,739
      Operating income                6,433      5,892     20,497      18,713

    Interest:
      Debt                              361        324      1,549       1,171
      Capital leases                     69         76        260         249
      Interest income                   (85)       (78)      (280)       (242)
      Interest, net                     345        322      1,529       1,178

    Income from continuing operations
     before income taxes and
     minority interest                6,088      5,570     18,968      17,535
    Provision for income taxes        1,977      1,835      6,365       5,803
    Income from continuing
     operations before minority
     interest                         4,111      3,735     12,603      11,732
    Minority interest                  (171)      (114)      (425)       (324)
    Income from continuing
     operations                       3,940      3,621     12,178      11,408
    Discontinued operations,
     net of tax                         ---        (32)      (894)       (177)
         Net income                  $3,940     $3,589    $11,284     $11,231

    Net income per common share:
      Basic income per share
       from continuing operations     $0.95      $0.87      $2.92       $2.73
      Basic loss per share from
       discontinued operations          ---      (0.01)     (0.21)      (0.05)
      Basic net income per share      $0.95      $0.86      $2.71       $2.68

      Diluted income per share from
       continuing operations          $0.95      $0.87      $2.92       $2.72
      Diluted loss per share from
       discontinued operations          ---      (0.01)     (0.21)      (0.04)
      Diluted net income per share    $0.95      $0.86      $2.71       $2.68

    Weighted-average number of
     common shares:
      Basic                           4,153      4,166      4,164       4,183
      Diluted                         4,156      4,170      4,168       4,188
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
                                                     Jan. 31,       Jan. 31,
                                                       2007           2006
                                 ASSETS
    Cash and cash equivalents                         $7,373         $6,193
    Receivables                                        2,840          2,575
    Inventories                                       33,685         31,910
    Prepaid expenses and other                         2,690          2,468
    Current assets of discontinued operations            ---            679
        Total current assets                          46,588         43,825

    Property and equipment, at cost                  109,798         95,537
    Less accumulated depreciation                    (24,408)       (20,937)
        Property and equipment, net                   85,390         74,600

    Property under capital leases                      5,392          5,392
    Less accumulated amortization                     (2,342)        (2,127)
        Property under capital leases, net             3,050          3,265

    Goodwill                                          13,759         12,097
    Other assets and deferred charges                  2,406          2,516
    Non-current assets of discontinued operations        ---          1,884
    Total assets                                    $151,193       $138,187


               LIABILITIES AND SHAREHOLDERS' EQUITY
    Commercial paper                                  $2,570         $3,754
    Accounts payable                                  28,090         25,101
    Accrued liabilities                               14,675         13,274
    Accrued income taxes                                 706          1,340
    Long-term debt due within one year                 5,428          4,595
    Obligations under capital leases due
     within one year                                     285            284
    Current liabilities of discontinued operations       ---            477
        Total current liabilities                     51,754         48,825

    Long-term debt                                    27,222         26,429
    Long-term obligations under capital leases         3,513          3,667
    Non-current liabilities of discontinued operations   ---            129
    Deferred income taxes and other                    4,971          4,501
    Minority interest                                  2,160          1,465

    Commitments and contingencies

    Common stock and capital in excess of par value    3,247          3,013
    Retained earnings                                 55,818         49,105
    Accumulated other comprehensive income             2,508          1,053
    Total shareholders' equity                        61,573         53,171
    Total liabilities and shareholders' equity      $151,193       $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
                                                          Fiscal Year Ended
                                                               Jan. 31,
                                                         2007           2006
    Cash flows from operating activities:
      Net income                                       $11,284        $11,231
      Loss from discontinued operations, net of tax        894            177
      Income from continuing operations                 12,178         11,408
      Adjustments to reconcile income from
       continuing operations to net cash
       provided by operating activities:
        Depreciation and amortization                    5,459          4,645
        Other                                            1,128            484
        Changes in certain assets and liabilities,
         net of effects of acquisitions:

          Increase in accounts receivable                 (214)          (466)
          Increase in inventories                       (1,274)        (1,761)
          Increase in accounts payable                   2,344          2,425
          Increase in accrued liabilities                  588          1,002
            Net cash provided by operating
             activities of continuing operations        20,209         17,737
            Net cash used in operating activities
             of discontinued operations                    (45)          (102)
            Net cash provided by operating activities   20,164         17,635

    Cash flows from investing activities:
      Payments for property and equipment              (15,666)       (14,530)
      Proceeds from disposal of property and equipment     394          1,042
      Proceeds from disposal of certain international
       operations, net                                     610            ---
      Investment in international operations,
       net of cash acquired                                (68)          (601)
      Other investing activities                           223            (67)
            Net cash used in investing activities
             of continuing operations                  (14,507)       (14,156)
            Net cash provided by (used in)
             investing activities of discontinued
             operations                                     44            (30)
            Net cash used in investing activities      (14,463)       (14,186)

    Cash flows from financing activities:
      Decrease in commercial paper                      (1,193)          (704)
      Proceeds from issuance of long-term debt           7,199          7,691
      Dividends paid                                    (2,802)        (2,511)
      Payment of long-term debt                         (5,758)        (2,724)
      Purchase of Company stock                         (1,718)        (3,580)
      Other financing activities                          (567)          (594)
            Net cash used in financing activities       (4,839)        (2,422)

    Effect of exchange rates on cash                        97           (101)
    Net increase in cash and cash equivalents              959            926
    Cash and cash equivalents at beginning of year [A]   6,414          5,488
    Cash and cash equivalents at end of year [B]        $7,373         $6,414

    [A] Includes cash and cash equivalents of discontinued operations of
        $221 million and $383 million at Jan. 31, 2006 and 2005, respectively.
    [B] Includes cash and cash equivalents of discontinued operations of
        $221 million at Jan. 31, 2006.

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

                            current presentation.
SOURCE  Wal-Mart Stores, Inc.
    -0-                             02/20/2007
    /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/Investors
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    (WMT)

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

AW-JP
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7565 02/20/2007 06:30 EST http://www.prnewswire.com