Wal-Mart Reports Record First Quarter Sales and Earnings

BENTONVILLE, Ark., May 15 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported record sales and earnings for the quarter ended Apr. 30, 2007. Net sales for the first quarter of fiscal year 2008 were $85.387 billion, an increase of 8.3 percent over the first quarter of fiscal year 2007. Income from continuing operations for the quarter was $2.826 billion, an increase of 6.2 percent from $2.660 billion in the first quarter of fiscal year 2007.

Earnings per share from continuing operations were $0.68, up from $0.64 per share in the same prior year quarter.

    Net Sales
    Net sales were as follows (dollars in billions):


                                                    Three Months Ended
                                                           Apr. 30
                                                                       Percent
                                                 2007        2006       Change
    Net Sales:
     Wal-Mart Stores                           $55.437      $52.499       5.6%
     Sam's Club                                 10.323        9.775       5.6%
     International                              19.627       16.561      18.5%
      Total Company                            $85.387      $78.835       8.3%

"While these are record sales and earnings, we feel there was an opportunity to have done better," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "Delivering on our mission -- saving people money so they can live better -- is more important than ever around the world. The worldwide organization is focused on improving sales and returns."

Operating Income

Operating income, which is defined as income before net interest expense, income taxes, unallocated corporate overhead, minority interest and discontinued operations, was as follows (dollars in billions):


                                                  Three Months Ended
                                                         Apr. 30
                                                                     Percent
                                               2007        2006       Change
    Operating Income:
     Wal-Mart Stores                          $3.927      $3.858       1.8%
     Sam's Club                                0.363       0.303      19.8%
     International                             0.903       0.757      19.3%

The Wal-Mart Stores and Sam's Club segments' operating income includes the favorable impact of an excise tax refund on prior merchandise phone card sales of $46 million and $39 million, and a charge for certain litigation of $73 million and $10 million, respectively.

Beginning with the first quarter of fiscal 2008, the above measurement of segment operating income has been changed to be consistent with certain changes to internal management reporting. The result of the new measurement criteria is to charge certain direct segment costs to the appropriate segments that were previously retained and managed as corporate overhead costs. As a result, all prior year measurements of segment profits have been restated for comparative purposes.

Comparable Store Sales

The Company reports comparable store sales for this earnings release based on the calendar months in the quarter which ended Apr. 30, 2007. Comparable store sales for the United States were as follows:

                          Without Fuel         With Fuel         Fuel Impact
                      Three Months Ended Three Months Ended Three Months Ended
                           Apr. 30              Apr. 30             Apr. 30
                          2007  2006          2007  2006          2007  2006

    Wal-Mart Stores      -0.1%  3.8%         -0.1%  3.8%          0.0%  0.0%
    Sam's Club            4.7%  4.3%          4.1%  4.8%         -0.6%  0.5%
     Total U.S.           0.6%  3.8%          0.6%  3.9%          0.0%  0.1%

    Guidance

For the second quarter of fiscal 2008, the Company estimates the comparable store sales increase in the United States to be between 1 and 2 percent.

The Company estimates earnings per share from continuing operations for the second quarter of fiscal 2008 to come in between $0.75 and $0.79.

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 common stock is listed on the New York Stock Exchange under the symbol WMT.

More information about Wal-Mart can be found by visiting http://www.walmartstores.com. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

This release contains statements as to the Company's estimate of its comparable store sales for the second quarter of fiscal year 2008 and its estimate of its earnings per share from continuing operations for the second quarter of 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 costs 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 filed with the SEC, and this release should be read in conjunction with that annual report on Form 10-K, 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
                                                              Apr. 30
                                                      2007              2006
    Revenues:
     Net sales                                      $85,387           $78,835
     Membership and other income                      1,023               841
                                                     86,410            79,676

    Costs and expenses:
     Cost of sales                                   65,311            60,237
     Operating, selling, general and
      administrative expenses                        16,249            14,944
    Operating income                                  4,850             4,495

    Interest:
     Debt                                               406               367
     Capital leases                                      69                69
     Interest income                                    (83)              (68)
     Interest, net                                      392               368

    Income from continuing operations
     before income taxes and minority interest        4,458             4,127


    Provision for income taxes                        1,532             1,388
    Income from continuing operations
     before minority interest                         2,926             2,739
    Minority interest                                  (100)              (79)
    Income from continuing operations                 2,826             2,660
    Discontinued operations, net of tax                  --               (45)
    Net income                                       $2,826            $2,615

    Net income per common share:
     Basic income per share from
      continuing operations                           $0.69             $0.64
     Basic loss per share from
      discontinued operations                            --             (0.01)
     Basic net income per share                       $0.69             $0.63

     Diluted income per share from
      continuing operations                           $0.68             $0.64
     Diluted loss per share from
      discontinued operations                            --             (0.01)
     Diluted net income per share                     $0.68             $0.63

    Weighted-average number of common
     shares:
      Basic                                           4,122             4,167
      Diluted                                         4,128             4,170



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

    SUBJECT TO RECLASSIFICATION               Apr. 30     Jan. 31,    Apr. 30
                                                2007        2007        2006
                ASSETS
    Current assets:
     Cash and cash equivalents                 $6,563      $7,373      $5,690
     Receivables                                3,300       2,840       2,430
     Inventories                               35,200      33,685      31,900
     Prepaid expenses and other                 2,892       2,690       2,885
     Current assets of discontinued
      operations                                   --          --       2,557
       Total current assets                    47,955      46,588      45,462

     Property and equipment, at cost          112,972     109,798      98,633
     Less accumulated depreciation            (25,713)    (24,408)    (21,988)
       Property and equipment, net             87,259      85,390      76,645

     Property under capital leases              5,445       5,392       5,552
     Less accumulated amortization             (2,420)     (2,342)     (2,197)
       Property under capital leases, net       3,025       3,050       3,355

     Goodwill                                  14,585      13,759      12,807
     Other assets and deferred charges          2,598       2,406       2,216
       Total assets                          $155,422    $151,193    $140,485

                LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
     Commercial paper                          $4,627      $2,570      $3,653
     Accounts payable                          27,562      28,090      25,115
     Dividends Payable                          3,088          --       2,304
     Accrued liabilities                       13,407      14,675      12,602
     Accrued income taxes                       1,558         706       1,969
     Long-term debt due within one year         4,212       5,428       5,528
     Obligations under capital leases due
      within one year                             246         285         239
     Current liabilities of discontinued
      operations                                  --           --         587
       Total current liabilities              54,700       51,754      51,997

    Long-term debt                            29,567       27,222      25,036
    Long-term obligations under capital
     leases                                    3,548        3,513       3,920
    Deferred income taxes and other            5,426        4,971       4,678
    Minority interest                          2,270        2,160       1,540

    Commitments and contingencies

    Shareholders' equity:
    Common stock and capital in excess of
     par value                                 3,284        3,247       3,070
    Retained earnings                         53,956       55,818      49,020
    Accumulated other comprehensive
     income                                    2,671        2,508       1,224
    Total shareholders' equity                59,911       61,573      53,314
    Total liabilities and shareholders'
     equity                                 $155,422     $151,193    $140,485



                     WAL-MART STORES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                              (Amounts in millions)
                                                        Three Months Ended
    SUBJECT TO RECLASSIFICATION                              Apr. 30,
                                                      2007              2006
    Cash flows from operating activities:
     Net income                                      $2,826            $2,615
     Loss from discontinued operations,
      net of tax                                         --                45
     Income from continuing operations                2,826             2,660
     Adjustments to reconcile income from
      continuing operations to net cash
      provided by operating activities:
       Depreciation and amortization                  1,488             1,294
       Other                                            470               (99)
       Changes in certain assets and
        liabilities, net of effects of
        acquisitions:
        Decrease in accounts receivable                  62               219
        (Increase) decrease in inventories           (1,280)              259
        Decrease in accounts payable                 (1,115)             (442)
        Decrease in accrued liabilities                (604)             (103)
    Net cash provided by operating
     activities of continuing operations              1,847             3,788
    Net cash used in operating activities
     of discontinued operations                          --               (48)
    Net cash provided by operating activities         1,847             3,740

    Cash flows from investing activities:
     Payments for property and equipment             (3,157)           (3,210)
     Proceeds from disposal of property
      and equipment                                     170               257
     Investment in international
      operations, net of cash acquired                 (466)              (68)
     Other investing activities                          11                67
    Net cash used in investing activities
     of continuing operations                        (3,442)           (2,954)
    Net cash used in investing activities
     of discontinued operations                          --                (9)
    Net cash used in investing activities            (3,442)           (2,963)

    Cash flows from financing activities:
     Increase (decrease) in commercial paper          1,988              (112)
     Proceeds from issuance of long-term  debt        3,170             1,284
     Dividends paid                                    (908)             (698)
     Payment of long-term debt                       (2,232)           (1,758)
     Purchase of Company stock                         (943)               --
     Other financing activities                        (276)              (86)
    Net cash provided by (used in)
     financing activities                               799            (1,370)

    Effect of exchange rates on cash                    (14)               37
    Net decrease in cash and cash equivalents          (810)             (556)
    Cash and cash equivalents at
     beginning of year (1)                            7,373             6,414
    Cash and cash equivalents at end of
     year (2)                                        $6,563            $5,858

    (1) Includes cash and cash equivalents of discontinued operations of $221
        million at Jan. 31, 2007.
    (2) Includes cash and cash equivalents of discontinued operations of $168
        million at Apr. 30, 2006.

SOURCE  Wal-Mart Stores, Inc.
    -0-                             05/15/2007
    /CONTACT:  investor relations, +1-479-273-8446, or Carol Schumacher,
+1-479-277-1498, or Pauline Mohler, +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.walmart.com
                http://www.samsclub.com /
    (WMT)

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

CC-AH
-- AQTU040 --
5028 05/15/2007 06:21 EDT http://www.prnewswire.com