Wal-Mart Reports First Quarter Financial Results; Earnings per Share of $0.77 at High End of Forecasted Range

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BENTONVILLE, Ark., May 14 -- Wal-Mart Stores, Inc. (NYSE: WMT) today reported diluted earnings per share for the first quarter of fiscal year 2010 of $0.77 , at the high end of the company's guidance of $0.72 to $0.77 . Currency exchange rates negatively impacted earnings by approximately $0.04 per share. Wal-Mart earned $0.76 per share in the first quarter last year.

Net sales for the first quarter were $93.471 billion , a decrease of 0.6 percent from $94.042 billion in the first quarter last year. Without the negative impact of currency exchange rates, equal to $4.836 billion , net sales for the quarter increased 4.5 percent to approximately $98.307 billion on a constant currency basis. In addition, this year's first quarter contained one less selling day than the same quarter last year, because 2008 was a leap year . Income from continuing operations for the first quarter of $3.030 billion was relatively flat compared to the same period last year.

"We're pleased to report that fiscal year 2010 is off to a very good start," said Mike Duke , Wal-Mart Stores, Inc. president and chief executive officer. "These results were achieved in the face of a very challenging global economy.

"When economic conditions improve, we believe customers who shop Wal-Mart today will stay with us, because of the business improvements we're making and continue to make," Duke said. "Across the company, we are building our brand by reducing costs, sharpening our merchandising and updating our stores.

"Customers trust Wal-Mart ," Duke continued. "As a result of the increasing shift to value, they have long term loyalty to the Wal-Mart brand because we save them money."

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


                                     Three Months Ended
                                          April 30,
                                                      Percent
                              2009          2008      Change
    Net Sales:
      Walmart U.S.          $61.244       $58.991       3.8%
      International          21.263        23.927     -11.1%
      Sam's Club             10.964        11.124      -1.4%
        Total Company       $93.471       $94.042      -0.6%

Reported International sales were negatively affected by currency translations to the U.S. dollar equal to $4.836 billion . On a constant currency basis (assuming currency exchange rates remained the same as the prior year), International sales increased 9.1 percent to $26.099 billion in the first quarter, compared to the same quarter last year.

Segment Operating Income

Segment operating income, which is defined as operating income for each operating segment, was as follows (dollars in billions):

                                 Three Months Ended
                                      April 30,
                                                 Percent
                              2009      2008     Change
    Segment Operating
     Income:
      Walmart U.S.          $4.464    $4.320      3.3%
      International          0.880     1.050    -16.2%
      Sam's Club             0.393     0.393      0.0%

Reported International operating income for the three months ended April 30, 2009 also was negatively affected by $252 million as a result of currency translations to the U.S. dollar. On a constant currency basis (assuming currency exchange rates remained the same as the prior year), International operating income increased 7.8 percent to $1.132 billion in the first quarter.

Comparable Store Sales

The company reports U.S. comparable store sales in this earnings release based on its 13-week retail calendar, as follows:

                       Without Fuel         With Fuel          Fuel Impact
                      Thirteen Weeks      Thirteen Weeks      Thirteen Weeks
                          Ended               Ended               Ended
                   05/01/09  05/02/08  05/01/09   05/02/08 05/01/09   05/02/08

    Walmart U.S.     3.6%       1.9%     3.6%       1.9%     0.0%       0.0%
    Sam's Club       4.2%       2.8%    -0.5%       5.6%    -4.7%       2.8%
      Total U.S.     3.7%       2.0%     2.9%       2.5%    -0.8%       0.5%

When reporting earnings in prior quarters, the company also reported comparable store sales on a monthly calendar basis. Effective this quarter, the company now will report comparable store sales for the most recently completed 13-week period, on its 4-5-4 retail calendar.

Data in the condensed consolidated financial statements included in this news release are based on the calendar quarters ending April 30 .

Guidance

"We expect earnings per share from continuing operations for the second quarter of fiscal year 2010 to be between $0.83 and $0.88 ," said Tom Schoewe , Wal-Mart Stores, Inc. executive vice president and chief financial officer. "Our guidance takes into account Wal-Mart's strong underlying performance and the difficult economic environment. Plus, our U.S. businesses will be up against the economic stimulus checks in the second quarter last year.

"The company is in a great financial position, and we're proud of our strong balance sheet and the free cash flow generated by our operations," Schoewe added. "We're doing an excellent job taking care of our customers and we'll continue to help them save money so they can live better long after the economy recovers."

The company announced last week that it will no longer report monthly comparable store sales. The 13-week comparable store sales results will be reported as part of quarterly earnings news, as noted above. Effective with this quarter, the company will provide 13-week comparable store sales guidance separately for Walmart U.S. and Sam's Club .

Walmart U.S. and Sam's Club each expect their comparable store sales during the 13-week period from May 2 through July 31 to be between flat and three percent. Wal-Mart will report each operating segment's comparable store sales result and the total U.S. aggregate comparable store sales result for that period when it reports second quarter earnings on Aug. 13 .

Effective Feb. 1, 2009 , the company adopted Statement of Financial Accounting Standards No. 160, "Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB 51." This standard requires modifications to financial statement presentation for minority interests in subsidiaries, now referred to as noncontrolling interests. These changes are reflected in Wal-Mart's first quarter condensed consolidated financial statements included in this release. As a result, all references to income from continuing operations or earnings per share from continuing operations in this release refer to income from continuing operations attributable to Wal-Mart , or diluted income per share from continuing operations attributable to Wal-Mart , respectively.

In addition to these changes, beginning Feb. 1, 2009 , the company changed the classification of certain revenue and expense items within the financial statements. These changes are reflected in the first quarter Condensed Consolidated Statements of Income for all periods presented and did not have an impact on the company's consolidated operating or net income.

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, including reconciliations, and the pre-recorded phone call is available in the investor information area on the company's Web site at www.walmartstores.com/investors.

Wal-Mart Stores, Inc. (NYSE: WMT) serves customers and members more than 200 million times per week at more than 7,900 retail units under 55 different banners in 15 countries. With fiscal year 2009 sales of $401 billion , Wal-Mart employs more than 2.1 million associates worldwide. A leader in sustainability, corporate philanthropy and employment opportunity, Wal-Mart ranked first among retailers in Fortune Magazine's 2009 Most Admired Companies survey. Additional information about Wal-Mart can be found by visiting www.walmartstores.com. Online merchandise sales are available at www.walmart.com and www.samsclub.com.

This release contains statements as to Wal-Mart management's expectations regarding customers continuing to shop at Wal-Mart and Wal-Mart continuing to help customers save money so they can live better long after the economy recovers and statements as to Wal-Mart management's forecasts of the company's earnings per share for the fiscal quarter ending July 31, 2009 and the comparable store sales of each of the Walmart U.S. and Sam's Club segments of the company for the 13-week period ending July 31, 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 or phrase "expect," "we'll continue" or "will stay" 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, levels of unemployment, levels of consumer disposable income, changes in laws and regulations, 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, developments in litigation to which the company is a party, 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)

    SUBJECT TO RECLASSIFICATION
                                                         Three Months Ended
                                                              April 30,
    (Amounts in millions except per share
     data)                                                 2009        2008

    Revenues:
      Net sales                                          $93,471     $94,042
      Membership and other income                            771         898
                                                          94,242      94,940

    Costs and expenses:
      Cost of sales                                       70,388      71,372
      Operating, selling, general and
       administrative expenses                            18,637      18,251

    Operating income                                       5,217       5,317

    Interest:
      Debt                                                   448         488
      Capital leases                                          70          72
      Interest income                                        (51)        (64)
      Interest, net                                          467         496

    Income from continuing operations before
     income taxes                                          4,750       4,821

    Provision for income taxes                             1,603       1,670

    Income from continuing operations                      3,147       3,151
    Loss from discontinued operations, net of
     tax                                                      (8)         (7)

    Consolidated net income                                3,139       3,144
    Less consolidated net income attributable
     to noncontrolling interest                             (117)       (122)

    Consolidated net income attributable to
     Wal-Mart                                             $3,022      $3,022


    Income from continuing operations
     attributable to 
  
   Wal-Mart
   
  :
      Income from continuing operations                   $3,147      $3,151
      Less consolidated net income attributable
       to noncontrolling interest                           (117)       (122)

        Income from continuing operations
         attributable to Wal-Mart                         $3,030      $3,029

    Basic net income per common share:
      Basic income per share from continuing
       operations attributable to Wal-Mart                 $0.77       $0.77
      Basic loss per share from discontinued
       operations attributable to Wal-Mart                     -       (0.01)
        Basic net income per share attributable to
         Wal-Mart                                          $0.77       $0.76

    Diluted net income per common share:
      Diluted income per share from continuing
       operations attributable to Wal-Mart                 $0.77       $0.76
      Diluted income per share from discontinued
       operations attributable to Wal-Mart                     -           -
        Diluted net income per share attributable
         to Wal-Mart                                       $0.77       $0.76

    Weighted-average number of common shares:
      Basic                                                3,920       3,957
      Diluted                                              3,930       3,967

    Dividends declared per common share                    $1.09       $0.95




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

    SUBJECT TO RECLASSIFICATION
                                               April 30,     January 31,
                                            2009      2008      2009
    ASSETS
    Current assets:
    Cash and cash equivalents              $6,578    $8,042    $7,275
    Receivables                             3,356     3,249     3,905
    Inventories                            34,391    35,521    34,511
    Prepaid expenses and other              3,266     2,990     3,063
    Current assets of discontinued
     operations                               155       955       195
        Total current assets               47,746    50,757    48,949

    Property and equipment, at cost:
      Property and equipment, at cost     127,472   124,256   125,820
      Less accumulated depreciation       (34,145)  (29,926)  (32,964)
        Property and equipment, net        93,327    94,330    92,856

    Property under capital lease:
    Property under capital lease            5,394     5,808     5,341
    Less accumulated amortization          (2,617)   (2,680)   (2,544)
        Property under capital lease,
         net                                2,777     3,128     2,797

    Goodwill                               14,882    16,428    15,260
    Other assets and deferred charges       3,358     2,840     3,567
        Total assets                     $162,090  $167,483  $163,429

    LIABILITIES AND EQUITY
    Current liabilities:
      Commercial paper                     $1,457    $5,924    $1,506
      Accounts payable                     28,541    29,027    28,849
      Dividends payable                     3,234     3,322         -
      Accrued liabilities                  15,263    14,882    18,112
      Accrued income taxes                  1,810     1,699       677
      Long-term debt due within one
       year                                 5,731     5,864     5,848
      Obligations under capital leases
       due within one year                    318       321       315
      Current liabilities of
       discontinued operations                 45        90        83
        Total current liabilities          56,399    61,129    55,390

    Long-term debt                         32,480    32,379    31,349
    Long-term obligations under
     capital leases                         3,185     3,584     3,200
    Deferred income taxes and other         5,835     5,284     6,014
    Redeemable noncontrolling
     interest                                 277         -       397

    Commitments and contingencies

    Equity:
    Common stock and capital in
     excess of par value                    4,048     3,628     4,313
    Retained earnings                      61,556    55,257    63,660
    Accumulated other comprehensive
     (loss) income                         (3,373)    4,345    (2,688)
        Total 
  
   Wal-Mart
   
   shareholders'
         equity                            62,231    63,230    65,285
    Noncontrolling interest                 1,683     1,877     1,794
        Total equity                       63,914    65,107    67,079
        Total liabilities and equity     $162,090  $167,483  $163,429




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

    SUBJECT TO RECLASSIFICATION
                                                           Three Months Ended
                                                                April 30,
                                                             2009       2008
    Cash flows from operating activities:
      Consolidated net income                              $3,139     $3,144
      Loss from discontinued operations, net of tax             8          7
      Income from continuing operations                     3,147      3,151
      Adjustments to reconcile income from continuing
       operations to net cash provided by operating
       activities:
        Depreciation and amortization                       1,700      1,628
        Other                                                (192)       139
        Changes in certain assets and liabilities, net of
         effects of acquisitions:
          Decrease in accounts receivable                     419        450
          Decrease (increase) in inventories                  153       (213)
          Decrease in accounts payable                       (315)    (1,191)
          Decrease in accrued liabilities                  (1,341)      (185)
    Net cash provided by operating activities               3,571      3,779

    Cash flows from investing activities:
      Payments for property and equipment                  (2,607)    (2,447)
      Proceeds from disposal of property and equipment        132        126
      Investment in international operations                 (436)         -
      Other investing activities                             (208)        88
    Net cash used in investing activities                  (3,119)    (2,233)

    Cash flows from financing activities:
      (Decrease) increase in commercial paper, net           (266)       892
      Proceeds from issuance of long-term debt              1,453      2,521
      Payment of long-term debt                               (63)      (361)
      Dividends paid                                       (1,067)      (940)
      Purchase of company stock                              (886)    (1,375)
      Other financing activities                             (238)        54
    Net cash used in (provided by) in financing
     activities                                            (1,067)       791

    Effect of exchange rates on cash                          (82)       166
    Net (decrease) increase  in cash and cash
     equivalents                                             (697)     2,503
    Cash and cash equivalents at beginning of year(1)       7,275      5,569
    Cash and cash equivalents at end of period(2)          $6,578     $8,072


    (1) Includes cash and cash equivalents of discontinued operations of
        
  
   $77 million
   at 
  
   January 31, 2008
  .
    (2) Includes cash and cash equivalents of discontinued operations of
        
  
   $30 million
   at 
  
   April 30, 2008
  .

SOURCE Wal-Mart Stores, Inc.
CONTACT:
Media Relations
John Simley
1-800-331-0085
or Investor Relations
Carol Schumacher
1-479-277-1498
or Mike Beckstead
1-479-277-9558, all of Wal-Mart Stores, Inc.
Web Site: http://www.walmartstores.com
http://www.walmart.com
http://www.samsclub.com