Wal-Mart Reports Third Quarter Sales and Earnings

BENTONVILLE, Ark., Nov. 13 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported its sales and earnings for the quarter ended Oct. 31, 2007. Net sales for the third quarter of fiscal year 2008 were approximately $90.9 billion, an increase of 8.8 percent over the third quarter of fiscal year 2007. Income from continuing operations for the quarter was $2.86 billion.

Earnings per share from continuing operations were $0.70, up from $0.62 per share in the same prior year quarter. Earnings per share from continuing operations for the third quarter were impacted positively $0.01 per share due to the recognition of $46.5 million in after tax gains from the sale of certain real estate properties.



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

                             Three Months Ended         Nine Months Ended
                                 October 31,               October 31,
                                            Percent                    Percent
                            2007     2006   Change    2007      2006   Change
    Net Sales:
      Wal-Mart Stores      $57.651  $54.179   6.4%  $172.101  $162.067   6.2%
      Sam's Club            10.826   10.206   6.1%    32.526    30.453   6.8%
      International         22.403   19.158  16.9%    63.630    54.382  17.0%
        Total Company      $90.880  $83.543   8.8%  $268.257  $246.902   8.6%


"Our results for the third quarter reflect the improved performance of our U.S. operations. Both Wal-Mart Stores U.S. and Sam's Club increased profits faster than sales. Wal-Mart International posted a solid quarter as well," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "Our focus on managing inventory this quarter was very positive.

"During the Christmas and holiday season, our price leadership position will benefit both our customers and the Company," Scott added. "We have set the stage for a successful fourth quarter."

Segment Operating Income

Segment operating income from continuing operations for each of the Company's operating segments, 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       Nine Months Ended
                                    October 31,             October 31,
                                              Percent                  Percent
                                2007    2006  Change   2007     2006   Change
    Operating Income:
      Wal-Mart Stores          $4.013  $3.611  11.1%  $12.214  $11.585   5.4%
      Sam's Club                0.362   0.341   6.2%    1.172    1.045  12.2%
      International             1.081   0.995   8.6%    3.026    2.743  10.3%


As the Company discussed in the first quarter of fiscal year 2008, the above measurement of segment operating income was changed starting in the first quarter to be consistent with certain changes to internal management reporting. Therefore, certain direct segment costs that were previously retained and managed as corporate overhead costs are now allocated to the appropriate operating segment.

Comparable Store Sales

    The Company reports comparable store sales in this earnings release based
on the calendar months in the quarters and the nine-month periods ended
Oct. 31, 2007 and 2006.  Comparable store sales for the United States were as
follows:



                                     Without Fuel   With Fuel    Fuel Impact
                                     Three Months  Three Months  Three Months
                                        Ended         Ended         Ended
                                     October 31,   October 31,   October 31,
                                      2007  2006    2007  2006   2007   2006

    Wal-Mart Stores                   1.0%  1.5%    1.0%  1.5%    0.0%   0.0%
    Sam's Club                        3.9%  1.8%    3.8%  0.0%   -0.1%  -1.8%
      Total U.S.                      1.5%  1.5%    1.5%  1.2%    0.0%  -0.3%



                                       Without Fuel   With Fuel   Fuel Impact
                                       Nine Months   Nine Months  Nine Months
                                          Ended         Ended        Ended
                                       October 31,   October 31,  October 31,
                                        2007  2006    2007  2006   2007  2006

    Wal-Mart Stores                     0.7%  2.2%    0.7%  2.2%   0.0%  0.0%
    Sam's Club                          4.8%  2.8%    4.8%  2.8%   0.0%  0.0%
      Total U.S.                        1.4%  2.3%    1.4%  2.3%   0.0%  0.0%



    Guidance

For the fourth quarter of fiscal year 2008, the Company estimates the comparable store sales increase in the United States to be between flat and 2 percent, according to Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.

"We expect earnings per share from continuing operations for the fourth quarter to be between $0.99 and $1.03, resulting in the full year Company forecast for earnings per share from continuing operations of $3.13 to $3.17," said Schoewe. "This guidance includes an anticipated restructuring charge for Seiyu of approximately $40 million after tax in the fourth quarter."

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 fourth quarter of fiscal year 2008 and its estimate of its earnings per share from continuing operations for the fourth quarter of fiscal year 2008 and for all of fiscal year 2008 that Wal-Mart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These statements can be identified by the use of the word "estimates," "expect" "forecast" and "anticipated" in the statements. 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
                 CONDENSED 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,
                                          2007     2006      2007      2006
    Revenues:
      Net sales                          $90,880  $83,543  $268,257  $246,902
      Membership and other income          1,069      924     3,114     2,670
                                          91,949   84,467   271,371   249,572

    Costs and expenses:
      Cost of sales                       69,292   63,765   205,192   188,587
      Operating, selling, general and
       administrative expenses            17,685   16,237    51,064    46,920
      Operating income                     4,972    4,465    15,115    14,065

    Interest:
      Debt                                   474      434     1,326     1,188
      Capital leases                          63       55       174       192
      Interest income                        (78)     (65)     (243)     (196)
      Interest, net                          459      424     1,257     1,184

    Income from continuing operations
     before income taxes and minority
     interest                              4,513    4,041    13,858    12,881

    Provision for income taxes             1,557    1,363     4,765     4,388
    Income from continuing operations
     before minority interest              2,956    2,678     9,093     8,493
    Minority interest                        (99)     (84)     (305)     (254)
    Income from continuing operations      2,857    2,594     8,788     8,239
    Income (loss) from discontinued
     operations, net of tax                  -         53      (153)     (894)
    Net income                            $2,857   $2,647    $8,635    $7,345

    Net income per common share:
      Basic income per common share from
       continuing operations               $0.71    $0.62     $2.15     $1.98
      Basic income (loss) per common share
       from discontinued operations          -       0.01     (0.04)    (0.22)
      Basic net income per common share    $0.71    $0.63     $2.11     $1.76

      Diluted income per common share from
       continuing operations               $0.70    $0.62     $2.14     $1.97
      Diluted income (loss) per common
       share from discontinued operations    -       0.01     (0.03)    (0.21)
      Diluted net income per common share  $0.70    $0.63     $2.11     $1.76

    Weighted-average number of common
     shares:
      Basic                                4,051    4,169     4,092     4,168
      Diluted                              4,056    4,173     4,097     4,172

    Dividends declared per common share     $-       $-       $0.88     $0.67



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

    SUBJECT TO RECLASSIFICATION            October 31, October 31, January 31,
                                               2007        2006        2007
                ASSETS
    Current assets:
    Cash and cash equivalents                 $4,950      $5,908      $7,373
    Receivables                                3,070       2,477       2,840
    Inventories                               39,555      38,531      33,685
    Prepaid expenses and other                 3,337       2,707       2,690
      Total current assets                    50,912      49,623      46,588

    Property and equipment, at cost          120,775     107,073     109,798
    Less accumulated depreciation            (27,771)    (24,159)    (24,408)
      Property and equipment, net             93,004      82,914      85,390

    Property under capital leases              5,690       5,421       5,392
    Less accumulated amortization             (2,563)     (2,313)     (2,342)
      Property under capital leases, net       3,127       3,108       3,050

    Goodwill                                  14,898      13,257      13,759
    Other assets and deferred charges          3,123       2,217       2,406
      Total assets                          $165,064    $151,119    $151,193

    LIABILITIES AND SHAREHOLDERS'
                EQUITY
    Current liabilities:
    Commercial paper                          $9,126      $7,968      $2,570
    Accounts payable                          30,800      29,263      28,090
    Dividends payable                            896         607         -
    Accrued liabilities                       14,806      14,283      14,675
    Accrued income taxes                         -           252         706
    Long-term debt due within one year         4,412       5,490       5,428
    Obligations under capital leases due
     within one year                             309         300         285
      Total current liabilities               60,349      58,163      51,754

    Long-term debt                            30,070      24,154      27,222
    Long-term obligations under capital
     leases                                    3,520       3,622       3,513
    Deferred income taxes and other            5,614       4,785       4,971
    Minority interest                          2,432       1,632       2,160

    Commitments and contingencies

    Shareholders' equity:
    Common stock and capital in excess of
     par value                                 3,421       3,237       3,247
    Retained earnings                         55,519      53,738      55,818
    Accumulated other comprehensive
     income                                    4,139       1,788       2,508
      Total shareholders' equity              63,079      58,763      61,573
      Total liabilities and shareholders'
       equity                               $165,064    $151,119    $151,193



                    WAL-MART STORES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in millions)
                                                       Nine Months Ended
    SUBJECT TO RECLASSIFICATION                           October 31,
                                                     2007              2006
    Cash flows from operating activities:
      Net income                                    $8,635            $7,345
      Loss from discontinued operations,
       net of tax                                      153               894
      Income from continuing operations              8,788             8,239
      Adjustments to reconcile income from
       continuing operations to net cash
       provided by operating activities:
        Depreciation and amortization                4,656             4,013
        Other                                          285               427
        Changes in certain assets and
         liabilities, net of effects of
         acquisitions:
          Decrease in accounts receivable               31               103
          Increase in inventories                   (5,037)           (6,198)
          Increase in accounts payable               1,450             3,501
          (Decrease) increase in accrued
           liabilities                              (1,010)               25
    Net cash provided by operating
     activities of continuing operations             9,163            10,110
    Net cash used in operating activities
     of discontinued operations                        -                 (45)
    Net cash provided by operating
     activities                                      9,163            10,065

    Cash flows from investing activities:
      Payments for property and equipment          (10,896)          (11,417)
      Proceeds from disposal of property
       and equipment                                   478               262
      Proceeds from disposal of certain
       international operations, net                   -                 610
      Investment in international
       operations, net of cash acquired               (461)              (68)
      Other investing activities                       (87)             (142)
    Net cash used in investing activities
     of continuing operations                      (10,966)          (10,755)
    Net cash provided by investing
     activities of discontinued operations             -                  44
    Net cash used in investing activities          (10,966)          (10,711)

    Cash flows from financing activities:
      Increase in commercial paper                   6,481             4,200
      Proceeds from issuance of long-term
       debt                                          7,967             3,282
      Payment of long-term debt                     (6,671)           (4,847)
      Dividends paid                                (2,707)           (2,118)
      Purchase of Company stock                     (5,279)              -
      Other financing activities                      (669)             (424)
    Net cash (used in) provided by
     financing activities                             (878)               93

    Effect of exchange rates on cash                   258                47
    Net decrease in cash and cash
     equivalents                                    (2,423)             (506)
    Cash and cash equivalents at
     beginning of year (1)                           7,373             6,414
    Cash and cash equivalents at end of
     period                                         $4,950            $5,908

    (1) Includes cash and cash equivalents of discontinued operations of
        $221 million at January 31, 2006.
SOURCE  Wal-Mart Stores, Inc.
    -0-                             11/13/2007
    /CONTACT:  Investors, Investor Relations, +1-479-273-8446, or Carol
Schumacher, +1-479-277-1498, or Anthony Clark, +1-479-277-9558, or Media, John
Simley, 1-800-331-0085, or Pre-recorded Conference Call, +1-203-369-1090, all
of Wal-Mart Stores, Inc./
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20070611/WALMARTLOGO1
              AP Archive:  http://photoarchive.ap.org
              PRN Photo Desk, photodesk@prnewswire.com/
    /Web site:  http://www.walmartstores.com
                http://www.walmart.com
                http://www.samsclub.com /
    (WMT)

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

GS-AA
-- LATU079 --
9380 11/13/2007 06:32 EST http://www.prnewswire.com