Wal-Mart Reports Record Second Quarter Earnings

                  Company Raises Full-Year Earnings Forecast

BENTONVILLE, Ark., Aug. 14 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported its sales and earnings for the quarter ended July 31, 2008. Net sales for the second quarter of fiscal year 2009 were approximately $101.6 billion, an increase of 10.4 percent from $92.0 billion in the second quarter last year.

Income from continuing operations for the second quarter was $3.385 billion, an increase of 9.3 percent from $3.097 billion in the second quarter last year. Diluted earnings per share from continuing operations for the second quarter of fiscal year 2009 increased to $0.86 from the previous year's second quarter result of $0.75 per share (after reclassifying for discontinued operations, as noted below). The prior year included a net benefit of $0.04 per share from three items: the net impact of a reduction of general liability and workers' compensation claim accruals, gains from the sale of certain real estate properties, and charges for legal and other contingencies.

Results of Gazeley Limited, an ASDA commercial development subsidiary that was sold in July 2008, have been reclassified for all periods as discontinued operations. The Company anticipates recording a gain from the Gazeley sale in the third quarter. In addition, there was a $63 million benefit to discontinued operations in this second quarter from the successful resolution of a tax contingency related to McLane Company Ltd., a former Wal-Mart subsidiary. The Company also reported a $153 million charge to discontinued operations in the second quarter of fiscal 2008 for a post-closing adjustment from the sale of its German operations in fiscal 2007.

"The combination of solid operating performance and improved capital efficiency gave us record earnings this quarter and nearly $5 billion in free cash flow in the first half of the fiscal year," said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. "Our underlying business remains sound as our associates deliver on Wal-Mart's mission to save people money so they can live better."



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

                             Three Months Ended         Six Months Ended
                                  July 31,                  July 31,
                                            Percent                    Percent
                            2008     2007   Change    2008      2007   Change
    Net Sales:
      Walmart U.S.         $64.053  $59.013   8.5%  $123.126  $114.450   7.6%
      International         25.261   21.600  16.9%    49.198    41.227  19.3%
      Sam's Club            12.284   11.377   8.0%    23.396    21.700   7.8%
        Total Company     $101.598  $91.990  10.4%  $195.720  $177.377  10.3%


Price leadership, enhanced customer service and operational improvements remained the primary drivers of sales growth worldwide, and contributed to earnings and free cash flow. Wal-Mart defines free cash flow, a non-GAAP measure, as cash provided by operating activities, less capital expenditures. A reconciliation of free cash flow for the first half of this fiscal year to the most directly comparable GAAP measure for the same period also is available on a Form 8-K furnished today with the Securities and Exchange Commission and at http://www.walmartstores.com/investors.

"We have improved customer traffic and ticket and overall sales growth in our markets," Scott added. "While inflation and higher fuel costs are pressuring suppliers, retailers and customers worldwide, we're confident that Wal-Mart is well-positioned for this economy."

Segment Operating Income

    Segment operating income for each operating segment, which is defined as
income from continuing operations before net interest expense, income taxes,
unallocated corporate overhead and minority interest, was as follows (dollars
in billions):



                                   Three Months Ended      Six Months Ended
                                         July 31,               July 31,
                                                Percent                Percent
                                  2008    2007  Change   2008    2007  Change
    Operating Income:
      Walmart U.S.*              $4.715  $4.256  10.8%  $9.077  $8.235  10.2%
      International               1.202   1.032  16.5%   2.244   1.908  17.6%
      Sam's Club*                 0.432   0.445  -2.9%   0.818   0.815   0.4%

* During the quarter ending July 31, 2007, the reduction of general liability and workers' compensation accruals, gains from the sale of certain real estate properties and charges for legal and other contingencies contributed, on a net basis, $265 million and $16 million of segment operating income of Walmart U.S. and Sam's Club, respectively.

Comparable Store Sales

The Company reports comparable store sales in this earnings release based on the calendar months in the quarters that ended July 31, 2008 and 2007. 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
                                       July 31,      July 31,      July 31,
                                      2008  2007    2008  2007    2008  2007

    Walmart U.S.                      4.6%  1.2%    4.6%  1.2%    0.0%  0.0%
    Sam's Club                        3.7%  5.9%    7.2%  6.5%    3.5%  0.6%
      Total U.S.                      4.5%  1.9%    5.0%  2.0%    0.5%  0.1%



                                         Without Fuel  With Fuel  Fuel Impact
                                          Six Months   Six Months  Six Months
                                            Ended        Ended       Ended
                                           July 31,     July 31,    July 31,
                                          2008  2007   2008  2007  2008  2007

    Walmart U.S.                          3.7%  0.6%   3.7%  0.6%  0.0%  0.0%
    Sam's Club                            3.7%  5.3%   6.9%  5.4%  3.2%  0.1%
      Total U.S.                          3.7%  1.3%   4.2%  1.3%  0.5%  0.0%



    Guidance

"For the third quarter of fiscal year 2009, we estimate the Company's comparable store sales increase in the United States to be between one and two percent, which continues to reflect some sales volatility from week to week," said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer. "We expect the Company's earnings per share from continuing operations for the third quarter to be between $0.73 and $0.76 and are raising our current forecast for earnings from continuing operations for the full fiscal year to a range of $3.43 to $3.50 per share."

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 Walmart 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 and, through a joint venture, in India. 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.

Ed. Note: The terms "Wal-Mart" and "Wal-Mart Stores" refer to the corporate entity. "Walmart," expressed as one word and without hyphenation, refers to the brand name of the Company's U.S. operations. This distinction came after the Company announced the introduction of a new logo for its U.S. store operations in June.

This release contains statements as to our management's expectation regarding recording a gain from the sale of Gazeley Limited in the third quarter of fiscal year 2009, our management's belief that the Company is well-positioned for this economy, our management's expectations regarding the comparable store sales increase in the United States in the third quarter of fiscal year 2009 and the Company's expectations for its diluted earnings per share from continuing operations for the third quarter of fiscal year 2009 and for all 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 "anticipates," "estimate," "expect," "well-positioned" or "forecast" 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 events and 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, damage to the Company's facilities from natural disasters, 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   Six Months Ended
                                             July 31,           July 31,
                                          2008     2007      2008      2007
    Revenues:
      Net sales                         $101,598  $91,990  $195,720  $177,377
      Membership and other income          1,069    1,009     2,241     2,000
                                         102,667   92,999   197,961   179,377

    Costs and expenses:
      Cost of sales                       77,642   70,589   149,528   135,900
      Operating, selling, general and
       administrative expenses            19,228   17,127    37,328    33,371
    Operating income                       5,797    5,283    11,105    10,106

    Interest:
      Debt                                   450      446       938       852
      Capital leases                          77       42       149       111
      Interest income                        (71)     (84)     (135)     (169)
      Interest, net                          456      404       952       794

    Income from continuing operations
     before income taxes and minority
     interest                              5,341    4,879    10,153     9,312

    Provision for income taxes             1,826    1,676     3,496     3,208
    Income from continuing operations
     before minority interest              3,515    3,203     6,657     6,104
    Minority interest                       (130)    (106)     (252)     (206)
    Income from continuing operations      3,385    3,097     6,405     5,898
    Income (loss) from discontinued
     operations, net of tax                   64     (145)       66      (120)
    Net income                            $3,449   $2,952    $6,471    $5,778

    Net income per common share:
      Basic income per common share from
       continuing operations               $0.86    $0.75     $1.62     $1.43
      Basic income (loss) per common
       share from discontinued operations   0.01    (0.03)     0.02     (0.02)
      Basic net income per common share    $0.87    $0.72     $1.64     $1.41

      Diluted income per common share
       from continuing operations          $0.86    $0.75     $1.62     $1.43
      Diluted income (loss) per common
       share from discontinued operations   0.01    (0.03)     0.01     (0.03)
      Diluted net income per common share  $0.87    $0.72     $1.63     $1.40

    Weighted-average number of common
     shares:
      Basic                                3,945    4,102     3,951     4,112
      Diluted                              3,958    4,108     3,962     4,118

    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              July 31,    July 31,  January 31,
                                               2008        2007        2008
                ASSETS
    Current assets:
    Cash and cash equivalents                 $6,907      $6,073      $5,499
    Receivables                                3,226       2,767       3,654
    Inventories                               35,382      34,184      35,180
    Prepaid expenses and other                 3,311       2,915       2,760
    Current assets of discontinued
     operations                                  708         448         492
      Total current assets                    49,534      46,387      47,585

    Property and equipment, at cost          126,698     116,648     122,642
    Less accumulated depreciation            (31,591)    (26,771)    (28,771)
      Property and equipment, net             95,107      89,877      93,871

    Property under capital leases              5,740       5,515       5,736
    Less accumulated amortization             (2,645)     (2,448)     (2,594)
      Property under capital leases, net       3,095       3,067       3,142

    Goodwill                                  16,400      14,655      16,071
    Other assets and deferred charges          2,755       2,959       2,841
    Non-current assets of discontinued
     operations                                    4           4           4
      Total assets                          $166,895    $156,949    $163,514

         LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Commercial paper                          $4,347      $8,117      $5,040
    Accounts payable                          29,933      27,748      30,370
    Dividends payable                          1,927       1,794         -
    Accrued liabilities                       15,607      14,025      15,724
    Accrued income taxes                         555         168       1,000
    Long-term debt due within one year         2,180       3,176       5,913
    Obligations under capital leases due
     within one year                             324         189         316
    Current liabilities of discontinued
     operations                                   31          33          91
      Total current liabilities               54,904      55,250      58,454

    Long-term debt                            34,168      27,966      29,799
    Long-term obligations under capital
     leases                                    3,544       3,594       3,603
    Deferred income taxes and other            5,410       5,449       5,111
    Minority interest                          2,076       2,404       1,939

    Commitments and contingencies

    Shareholders' equity:
    Common stock and capital in excess of
     par value                                 3,986       3,412       3,425
    Retained earnings                         57,883      55,414      57,319
    Accumulated other comprehensive
     income                                    4,924       3,460       3,864
      Total shareholders' equity              66,793      62,286      64,608
      Total liabilities and shareholders'
       equity                               $166,895    $156,949    $163,514



                    WAL-MART STORES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in millions)
                                                        Six Months Ended
    SUBJECT TO RECLASSIFICATION                             July 31,
                                                     2008              2007
    Cash flows from operating activities:
      Net income                                    $6,471            $5,778
      (Income) loss from discontinued
       operations, net of tax                          (66)              120
      Income from continuing operations              6,405             5,898
      Adjustments to reconcile income from
       continuing operations to net cash
       provided by operating activities:
        Depreciation and amortization                3,366             3,060
        Other                                          315               101
        Changes in certain assets and
         liabilities, net of effects of
         acquisitions:
          Decrease in accounts receivable              578               255
          Decrease (increase) in inventories            95               (64)
          Decrease in accounts payable                (150)           (1,134)
          Decrease in accrued liabilities             (626)           (1,918)
    Net cash provided by operating
     activities                                      9,983             6,198

    Cash flows from investing activities:
      Payments for property and equipment           (5,074)           (6,971)
      Proceeds from disposal of property
       and equipment                                   492               319
      Investment in international
       operations, net of cash acquired                (74)             (467)
      Other investing activities                       129               (61)
    Net cash used in investing activities           (4,527)           (7,180)

    Cash flows from financing activities:
      (Decrease) increase in commercial paper         (639)            5,487
      Proceeds from issuance of long-term debt       4,648             3,818
      Payment of long-term debt                     (4,061)           (5,435)
      Dividends paid                                (1,878)           (1,811)
      Purchase of Company stock                     (2,184)           (2,484)
      Other financing activities                       (85)             (435)
    Net cash used in financing activities           (4,199)             (860)

    Effect of exchange rates on cash                   115               169
    Net increase (decrease) in cash and
     cash equivalents                                1,372            (1,673)
    Cash and cash equivalents at
     beginning of year (1)                           5,569             7,767
    Cash and cash equivalents at end of
     period (2)                                     $6,941            $6,094

    (1) Includes cash and cash equivalents of discontinued operations of $70
        million and $49 million at January 31, 2008 and 2007, respectively.
    (2) Includes cash and cash equivalents of discontinued operations of $34
        million and $21 million at July 31, 2008 and 2007, respectively.
SOURCE  Wal-Mart Stores, Inc.
    -0-                             08/14/2008
    /CONTACT:  Investors, Carol Schumacher, +1-479-277-1498, or Mike
Beckstead, +1-479-277-9558, or Media, John Simley, 1-800-331-0085, 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
                http://www.walmartstores.com/news
                http://www.walmart.com
                http://www.samsclub.com
                http://www.walmartstores.com/investors /
    (WMT)

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

GS-EC
-- LATH514 --
9503 08/14/2008 06:16 EDT http://www.prnewswire.com