Wal-Mart Reports Third Quarter Fiscal 2009 Earnings

BENTONVILLE, Ark., Nov. 13 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported its sales and earnings for the quarter ended Oct. 31, 2008. Net sales for the third quarter of fiscal year 2009 were $97.6 billion, an increase of 7.5 percent from $90.8 billion in the third quarter last year.

Income from continuing operations for the third quarter was $3.033 billion, an increase of 6.6 percent from $2.846 billion in the third quarter last year. Diluted earnings per share from continuing operations for the third quarter of fiscal year 2009 increased to $0.77 from the previous year's third quarter result of $0.70 per share. The prior year included a net benefit of $0.01 per share due to the recognition of $46.5 million in after-tax gains from the sale of certain real estate properties.

During the third quarter of fiscal year 2009, the Company recorded a $107 million after-tax charge related to store closures and property divestitures at Seiyu in Japan and a $212 million after-tax gain on the disposal of Gazeley Limited which was sold in July 2008. These operations have been accounted for as discontinued operations for all periods presented.

"We are very pleased with our results this quarter," said Lee Scott, Wal- Mart Stores, Inc. president and chief executive officer. "Despite economic difficulties around the world, we achieved solid sales and earnings growth and we are optimistic about the upcoming holidays. At a time when our customer is feeling the pressure of a tough economy, Wal-Mart's price leadership is more important than ever.

"Improved operating performance and capital efficiency contributed to stronger earnings and free cash flow," Scott added. "The credit for our performance goes to the more than 2 million associates serving more than 175 million customers in 14 countries every week."

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

                             Three Months Ended         Nine Months Ended
                                 October 31,               October 31,
                                            Percent                    Percent
                             2008     2007   Change    2008      2007   Change
    Net Sales:
     Walmart U.S.           $61.155  $57.651   6.1%  $184.281  $172.101   7.1%
     International           24.857   22.349  11.2%    73.949    63.472  16.5%
     Sam's Club              11.622   10.826   7.4%    35.018    32.526   7.7%
      Total Company         $97.634  $90.826   7.5%  $293.248  $268.099   9.4%

"Our sales results reflect the improved customer experience and sharper merchandising presentation at Walmart U.S., as well as higher traffic at Sam's Club among both Business and Advantage members," Scott said. "International remains Wal-Mart's fastest-growing business, proving that our mission of saving people money so they can live better resonates with customers everywhere we do business."

Free cash flow increased to approximately $2.0 billion for the first nine months of fiscal year 2009, compared to a deficit of $1.3 billion for the same period last year. 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 nine months of this fiscal year to the most directly comparable GAAP measure for the same period is available on Form 8-K furnished today with the Securities and Exchange Commission and at http://www.walmartstores.com/investors.

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       Nine Months Ended
                                      October 31,             October 31,
                                              Percent                  Percent
                                 2008    2007  Change   2008     2007   Change
    Segment Operating Income:
     Walmart U.S.               $4.286  $3.995   7.3%  $13.363  $12.230   9.3%
     International               1.182   1.069  10.6%    3.450    2.986  15.5%
     Sam's Club                  0.365   0.359   1.7%    1.183    1.174   0.8%

Comparable Store Sales

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

    Walmart U.S.                          2.7%  1.0%  2.7%  1.0%  0.0%   0.0%
    Sam's Club                            4.5%  3.9%  6.7%  3.8%  2.2%  -0.1%
      Total U.S.                          3.0%  1.5%  3.3%  1.5%  0.3%   0.0%

                                          Without Fuel  With Fuel  Fuel Impact
                                          Nine Months Nine Months Nine Months
                                             Ended       Ended       Ended
                                          October 31, October 31, October 31,
                                           2008  2007  2008  2007  2008  2007

    Walmart U.S.                           3.4%  0.7%  3.4%  0.7%  0.0%  0.0%
    Sam's Club                             4.0%  4.8%  6.8%  4.8%  2.8%  0.0%
      Total U.S.                           3.5%  1.4%  3.9%  1.4%  0.4%  0.0%

Guidance

For the fourth quarter of fiscal year 2009, the Company estimates the comparable store sales increase in the United States to be between one and three percent, according to Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.

"We estimate diluted earnings per share from continuing operations for the fourth quarter will be between $1.03 and $1.07," Schoewe said. "The rapid changes in currency exchange rates during the last few weeks are projected to negatively affect this year's fourth-quarter results by approximately six cents per share. In U.S. dollar terms, strong operating performance in International may be overshadowed by these currency fluctuations.

"For the full year, ending January 31, we have tightened and modestly reduced our guidance and now forecast diluted earnings per share from continuing operations to be within a range of $3.42 to $3.46," he said.

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.

This release contains statements as to our management's expectations regarding the comparable store sales increase in the United States in the fourth quarter of fiscal year 2009, the Company's expectations for its diluted earnings per share from continuing operations for the fourth quarter of fiscal year 2009 and for all of fiscal year 2009, and our management's expectation that currency exchange rates and related issues will be detrimental to comparisons between results for the fourth quarter of fiscal year 2009 and those for the fourth 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, 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 "anticipate," "estimate," "may be," forecast" or "projected" in the statements. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including general economic conditions, the cost of goods, competitive pressures, geopolitical events and 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, financial and 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.
                 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,
                                          2008     2007      2008      2007
    Revenues:
     Net sales                           $97,634  $90,826  $293,248  $268,099
     Membership and other income           1,008    1,039     3,243     3,034
                                          98,642   91,865   296,491   271,133

    Costs and expenses:
     Cost of sales                        74,114   69,251   223,557   205,073
     Operating, selling, general and
      administrative expenses             19,236   17,653    56,513    50,984
    Operating income                       5,292    4,961    16,421    15,076

    Interest:
     Debt                                    464      474     1,402     1,326
     Capital leases                           73       63       222       174
     Interest income                         (81)     (77)     (216)     (246)
     Interest, net                           456      460     1,408     1,254

    Income from continuing operations
     before income taxes and minority
     interest                              4,836    4,501    15,013    13,822

    Provision for income taxes             1,690    1,556     5,186     4,764
    Income from continuing operations
     before minority interest              3,146    2,945     9,827     9,058
    Minority interest                       (113)     (99)     (365)     (305)
    Income from continuing operations      3,033    2,846     9,462     8,753
    Income (loss) from discontinued
     operations, net of tax                  105       11       146      (118)
    Net income                            $3,138   $2,857    $9,608    $8,635

    Net income per common share:
     Basic income per common share from
      continuing operations                $0.77    $0.70     $2.40     $2.14
     Basic income (loss) per common share
      from discontinued operations          0.03     0.01      0.04     (0.03)
     Basic net income per common share     $0.80    $0.71     $2.44     $2.11

     Diluted income per common share from
      continuing operations                $0.77    $0.70     $2.39     $2.14
     Diluted income (loss) per common
      share from discontinued operations    0.03      -        0.04     (0.03)
     Diluted net income per common share   $0.80    $0.70     $2.43     $2.11

    Weighted-average number of common
     shares:
     Basic                                 3,931    4,051     3,944     4,092
     Diluted                               3,944    4,056     3,956     4,097

    Dividends declared per common share     $-       $-       $0.95     $0.88


                            Wal-Mart Stores, Inc.
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)
                            (Amounts in millions)

    SUBJECT TO RECLASSIFICATION            October 31, October 31, January 31,
                                               2008        2007        2008
    ASSETS
    Current assets:
     Cash and cash equivalents                $5,920      $5,518      $5,492
     Receivables                               3,250       3,062       3,642
     Inventories                              40,416      39,535      35,159
     Prepaid expenses and other                3,245       2,880       2,760
     Current assets of discontinued operations    25         511         532
      Total current assets                    52,856      51,506      47,585
    Property and equipment, at cost:
     Property and equipment, at cost         125,173     120,396     122,256
     Less accumulated depreciation           (31,467)    (27,537)    (28,531)
      Property and equipment, net             93,706      92,859      93,725
    Property under capital lease:
     Property under capital lease              5,420       5,690       5,736
     Less accumulated amortization            (2,581)     (2,563)     (2,594)
      Property under capital leases, net       2,839       3,127       3,142

    Goodwill                                  15,416      14,898      16,071
    Other assets and deferred charges          2,789       3,031       2,748
    Non-current assets of discontinued
     operations                                  237         238         243
      Total assets                          $167,843    $165,659    $163,514

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
     Commercial paper                         $7,932      $9,126      $5,040
     Accounts payable                         30,782      31,376      30,344
     Dividends payable                           993         896         -
     Accrued liabilities                      15,343      14,773      15,725
     Accrued income taxes                        355         -         1,000
     Long-term debt due within one year        4,753       4,412       5,913
     Obligations under capital leases due
      within one year                            314         309         316
     Current liabilities of discontinued
      operations                                 128          50         116
      Total current liabilities               60,600      60,942      58,454

     Long-term debt                           30,803      30,070      29,799
     Long-term obligations under capital
      leases                                   3,268       3,520       3,603
     Deferred income taxes and other           5,575       5,590       5,087
     Minority interest                         2,034       2,432       1,939
     Non-current liabilities of discontinued
      operations                                  24          23          24

    Commitments and contingencies

    Shareholders' equity:
     Common stock and capital in excess of
      par value                                4,219       3,421       3,425
     Retained earnings                        59,809      55,522      57,319
     Accumulated other comprehensive income    1,511       4,139       3,864
      Total shareholders' equity              65,539      63,082      64,608
      Total liabilities and shareholders'
       equity                               $167,843    $165,659    $163,514


                            Wal-Mart Stores, Inc.
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)
                            (Amounts in millions)

                                                      Nine Months Ended
    SUBJECT TO RECLASSIFICATION                           October 31,
                                                     2008              2007
    Cash flows from operating activities:
     Net income                                     $9,608             $8,635
     (Income) loss from discontinued operations,
      net of tax                                      (146)               118
     Income from continuing operations               9,462              8,753
     Adjustments to reconcile income from
      continuing operations to net cash
      provided by operating activities:
      Depreciation and amortization                  5,054              4,656
      Other                                            749                321
      Changes in certain assets and liabilities,
       net of effects of acquisitions:
       Decrease in accounts receivable                 394                 31
       Increase in inventories                      (5,655)            (5,037)
       Increase in accounts payable                    914              1,450
       Decrease in accrued liabilities                (745)              (551)
    Net cash provided by operating activities       10,173              9,623

    Cash flows from investing activities:
     Payments for property and equipment            (8,174)           (10,896)
     Proceeds from disposal of property and
      equipment                                        779                478
     Proceeds from (payments for) disposal of
      certain international operations, net            838               (257)
     Investment in international operations, net of
      cash acquired                                    (74)              (461)
     Other investing activities                       (166)               (87)
    Net cash used in investing activities           (6,797)           (11,223)

    Cash flows from financing activities:
     Increase in commercial paper                    2,949              6,481
     Proceeds from issuance of long-term debt        5,568              7,967
     Payment of long-term debt                      (5,064)            (6,671)
     Dividends paid                                 (2,814)            (2,707)
     Purchase of company stock                      (3,521)            (5,279)
     Other financing activities                         88               (669)
    Net cash used in financing activities           (2,794)              (878)

    Effect of exchange rates on cash                  (231)               258
    Net increase (decrease) in cash and cash
     equivalents                                       351             (2,220)
    Cash and cash equivalents at beginning of
     year (1)                                        5,569              7,767
    Cash and cash equivalents at end of period (2)  $5,920             $5,547


    (1)  Includes cash and cash equivalents of discontinued operations of
         $77 million at January 31, 2008, and $51 million at January 31, 2007
         respectively.
    (2)  Includes cash and cash equivalents of discontinued operations of
         $29 million at October 31, 2007.

SOURCE  Wal-Mart Stores, Inc.
    -0-                             11/13/2008
    /CONTACT:  Investor Relations, John Simley, 1-800-331-0085, or Media
Relations, Carol Schumacher, +1-479-277-1498, or Mike Beckstead,
+1-479-277-9558, or 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
                http://www.walmartstores.com/news
                http://www.walmartstores.com/investors/
    (WMT)

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

KQ-JC
-- LATH017 --
7911 11/13/2008 06:15 EST http://www.prnewswire.com