Wal-Mart Reports Record First Quarter Sales and Earnings

BENTONVILLE, Ark., May 13 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported its sales and earnings for the quarter ended April 30, 2008. Net sales for the first quarter of fiscal year 2009 were approximately $94.1 billion, an increase of 10.2 percent over $85.4 billion for the first quarter of fiscal year 2008. Net income for the quarter was $3.022 billion, an increase of 6.9 percent from $2.826 billion in the first quarter of fiscal year 2008. Diluted earnings per share for the first quarter of fiscal year 2009 were $0.76, up from $0.68 per share in the same prior year quarter.

"We're off to a solid start, with record first quarter sales and earnings," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "We continue to deliver against the business model that Sam Walton started -- selling branded merchandise for less. Our business is even more relevant to our customers today, given the current economic pressures."

Price leadership, better customer service and operational improvements remained the primary drivers of sales growth worldwide, even in light of economic headwinds caused by higher energy costs and food inflation.

"Our customers appreciate that Wal-Mart is the consistent price leader," Scott added. "We continue to make progress in delivering on our mission of saving people money so they can live better."



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

                                                    Three Months Ended
                                                         April 30,
                                                                      Percent
                                               2008         2007       Change
    Net Sales:
      Wal-Mart Stores                         $59.073      $55.437       6.6%
      Sam's Club                               11.112      $10.323       7.6%
      International                            23.937      $19.627      22.0%
        Total Company                         $94.122      $85.387      10.2%



    Segment Operating Income
    Segment operating income for each of the Company's operating segments,
which is defined as income before net interest expense, income taxes,
unallocated corporate overhead and minority interest, was as follows (dollars
in billions):

                                                    Three Months Ended
                                                         April 30,
                                                                    Percent
                                               2008        2007      Change
    Operating Income:
      Wal-Mart Stores                         $4.362      $3.979       9.6%
      Sam's Club                               0.386       0.370       4.3%
      International                            1.044       0.903      15.6%



    Comparable Store Sales
    The Company reports comparable store sales in this earnings release based
on the calendar months in the quarters that ended April 30, 2008 and 2007.
The first quarter this year included an additional selling day on Feb. 29, due
to the leap year. 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
                                         April 30,    April 30,    April 30,
                                        2008   2007  2008   2007  2008   2007

    Wal-Mart Stores                     2.7%  -0.1%  2.7%  -0.1%  0.0%   0.0%
    Sam's Club                          3.6%   4.7%  6.5%   4.1%  2.9%  -0.6%
      Total U.S.                        2.9%   0.6%  3.3%   0.6%  0.4%   0.0%



    Guidance

"For the second quarter of fiscal year 2009, we estimate the Company's comparable store sales increase in the United States to be between flat and two percent. As we have discussed, it is currently difficult to quantify the impact on U.S. sales from the stimulus payments," said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer. "We expect the Company's earnings per share for the second quarter to be between $0.78 and $0.81. As a reminder, last year's second quarter results included a net benefit of approximately $0.04 per share from the impact of a reduction of general liability and workers' compensation claims accruals, gains from the sale of certain real estate properties somewhat offset by charges for legal and other contingencies."

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 are 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 (NYSE) 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 our management's expectations regarding the comparable store sales increase in the United States in the second quarter of fiscal year 2009 and the Company's expectations for its earnings per share for the second quarter of fiscal year 2009 that Wal-Mart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. 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 "estimate" and "expect" 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, general economic conditions, consumer credit availability, 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
                                                           April 30,
                                                     2008             2007
    Revenues:
      Net sales                                    $94,122           $85,387
      Membership and other income                    1,181             1,023
                                                    95,303            86,410

    Costs and expenses:
      Cost of sales                                 71,886            65,311
      Operating, selling, general and
       administrative expenses                      18,107            16,249
    Operating income                                 5,310             4,850

    Interest:
      Debt                                             488               406
      Capital leases                                    72                69
      Interest income                                  (64)              (83)
      Interest, net                                    496               392

    Income before income taxes and
     minority interest                               4,814             4,458

    Provision for income taxes                       1,670             1,532
    Income before minority interest                  3,144             2,926
    Minority interest                                 (122)             (100)
    Net income                                      $3,022            $2,826

    Net income per common share:
      Basic net income per common share              $0.76             $0.69

      Diluted net income per common share            $0.76             $0.68

    Weighted-average number of common shares:
      Basic                                          3,957             4,122
      Diluted                                        3,967             4,128

    Dividends declared per common share              $0.95             $0.88



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

    SUBJECT TO RECLASSIFICATION             April 30,   April 30,  January 31,
                                               2008        2007        2008
                                    ASSETS
    Current assets:
    Cash and cash equivalents                 $8,072      $6,563      $5,569
    Receivables                                3,256       2,924       3,654
    Inventories                               35,541      35,200      35,180
    Prepaid expenses and other                 3,426       2,892       3,182
      Total current assets                    50,295      47,579      47,585

    Property and equipment, at cost          124,697     112,972     122,648
    Less accumulated depreciation            (30,200)    (25,713)    (28,773)
      Property and equipment, net             94,497      87,259      93,875

    Property under capital leases              5,808       5,445       5,736
    Less accumulated amortization             (2,680)     (2,420)     (2,594)
      Property under capital leases, net       3,128       3,025       3,142

    Goodwill                                  16,620      14,585      16,071
    Other assets and deferred charges          2,943       2,974       2,841
      Total assets                          $167,483    $155,422    $163,514

                     LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Commercial paper                          $5,924      $4,627      $5,040
    Accounts payable                          29,048      27,562      30,370
    Dividends payable                          3,322       3,088         -
    Accrued liabilities                       14,912      13,407      15,799
    Accrued income taxes                       1,711       1,558       1,016
    Long-term debt due within one year         5,864       4,212       5,913
    Obligations under capital leases due
     within one year                             321         246         316
      Total current liabilities               61,102      54,700      58,454

    Long-term debt                            32,379      29,567      29,799
    Long-term obligations under capital
     leases                                    3,584       3,548       3,603
    Deferred income taxes and other            5,310       5,426       5,111
    Minority interest                          1,878       2,270       1,939

    Commitments and contingencies

    Shareholders' equity:
    Common stock and capital in excess of
     par value                                 3,628       3,284       3,425
    Retained earnings                         55,257      53,956      57,319
    Accumulated other comprehensive
     income                                    4,345       2,671       3,864
      Total shareholders' equity              63,230      59,911      64,608
      Total liabilities and shareholders'
       equity                               $167,483    $155,422    $163,514



                    WAL-MART STORES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in millions)

                                                        Three Months Ended
    SUBJECT TO RECLASSIFICATION                              April 30,
                                                       2008             2007
    Cash flows from operating activities:
      Net income                                      $3,022           $2,826
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation and amortization                  1,628            1,488
        Other operating activities                       194              470
        Changes in certain assets and
         liabilities, net of effects of
         acquisitions:
          Decrease in accounts receivable                450               62
          Increase in inventories                       (213)          (1,280)
          Decrease in accounts payable                (1,191)          (1,115)
          Decrease in accrued liabilities               (185)            (604)
    Net cash provided by operating activities          3,705            1,847

    Cash flows from investing activities:
      Payments for property and equipment             (2,447)          (3,157)
      Proceeds from disposal of property
       and equipment                                     126              170
      Investment in international
       operations, net of cash acquired                    -             (466)
      Other investing activities                          88               11
    Net cash used in investing activities             (2,233)          (3,442)

    Cash flows from financing activities:
      Increase in commercial paper                       892            1,988
      Proceeds from issuance of long-term
       debt                                            2,521            3,170
      Payment of long-term debt                         (361)          (2,232)
      Dividends paid                                    (940)            (908)
      Purchase of Company stock                       (1,375)            (943)
      Other financing activities                         128             (276)
    Net cash provided by financing activities            865              799

    Effect of exchange rates on cash                     166              (14)
    Net increase (decrease) in cash and
     cash equivalents                                  2,503             (810)
    Cash and cash equivalents at
     beginning of year                                 5,569            7,373
    Cash and cash equivalents at end of period        $8,072           $6,563
SOURCE  Wal-Mart Stores, Inc.
    -0-                             05/13/2008
    /CONTACT:  Investor Relations, Investor Relations, +1-479-273-8446, or
Carol Schumacher, +1-479-277-1498, or Mike Beckstead, +1-479-277-9558, or
Media Relations, John Simley, 1-800-331-0085, Pre-recorded Conference Call
+1-203-369-1090, all of Wal-Mart Stores, Inc./
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20070927/WALMARTCOMLOGO
             AP Archive:  http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com /
    /Web site:  http://www.walmartstores.com /
    (WMT)

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

JP-AH
-- LATU081 --
4259 05/13/2008 06:13 EDT http://www.prnewswire.com