Walmart reports a 4.6 percent increase for Q1 EPS of $1.14; U.S. businesses forecast positive comp sales for Q2

  Walmart reports a 4.6 percent increase for Q1 EPS of $1.14; U.S. businesses
  forecast positive comp sales for Q2

  *Wal-Mart Stores, Inc. (Walmart) reported first quarter diluted earnings
    per share (EPS) of $1.14, a 4.6 percent increase compared to last year's
    first quarter EPS of $1.09.
  *Walmart U.S. and Sam's Club, excluding fuel, expect to increase comps for
    the Q2 13-week period to between flat and 2 percent and 1 and 3 percent,
    respectively.
  *The company expects to deliver EPS for Q2 between $1.22 and $1.27,
    compared to $1.18 last year.
  *Walmart U.S. comp sales declined 1.4 percent in the 13-week period from
    Jan. 26 to Apr. 26, 2013. Comp sales performance was impacted by a delay
    in income tax refund checks, challenging weather conditions, less grocery
    inflation than expected and the payroll tax increase. Walmart U.S. gained
    market share^1 in the measured category of "food, consumables and health &
    wellness/OTC."
  *Walmart International grew net sales 2.9 percent to $33.0 billion. On a
    constant currency basis^2, Walmart International's net sales would have
    increased 5.4 percent to $33.8 billion. Walmart International gained
    market share^3 in a majority of the countries in which we operate.
  *Comp sales, without fuel, at Sam's Club were up 0.2 percent during the
    period, pressured by softer business member traffic, weather and lower
    than expected inflation.
  *Consolidated net sales reached $113.4 billion, an increase of $1.2
    billion, or 1.0 percent. Currency exchange rate fluctuations had a
    negative impact on net sales of $1.0 billion.
  *Consolidated operating income was $6.5 billion, an increase of 1.1 percent
    over last year. Walmart U.S. and Sam's Club grew operating income 5.9
    percent and 7.4 percent, respectively.
  *Walmart reported free cash flow^2 of $1.9 billion for the quarter ended
    Apr. 30, 2013.
  *The company returned $3.8 billion to shareholders through dividends and
    share repurchases in the first quarter.

^1 Sources: The Nielsen Company, 13 weeks ended Apr. 27, 2013.

^2 See additional information at the end of this release regarding non-GAAP
financial measures.

^3 Sources: Africa: Statistics South Africa, Argentina: The Nielsen Company,
Canada: The Nielsen Company, Central America: The Nielsen Company, Chile:
National Statistics Institute (INE), China: National Bureau of Statistics of
China (NBSC), Japan: Ministry of Economy, Trade and Industry (METI).

Business Wire

BENTONVILLE, Ark. -- May 16, 2013

Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the
first quarter ended April 30, 2013.

Net sales for the first quarter were $113.4 billion, an increase of 1.0
percent over last year. Net sales last year benefited by 1.0 percent from the
extra day due to leap year. On a constant currency basis^1, net sales would
have increased 1.8 percent to $114.2 billion. Membership and other income
increased 1.6 percent versus last year, due primarily to an increase in
membership income. Total revenue for the first quarter was $114.2 billion, a
1.0 percent increase over last year.

Consolidated net income attributable to Walmart for the first quarter was $3.8
billion, up 1.1 percent. Diluted earnings per share attributable to Walmart
(EPS) were $1.14, a 4.6 percent increase, compared to $1.09 last year.

Solid earnings performance

"In a quarter marked by considerable headwinds to top line sales, Walmart
delivered solid EPS growth of 4.6 percent," said Mike Duke, Wal-Mart Stores,
Inc. president and chief executive officer. "Walmart's mission is simple and
focused -- to help people save money so they can live better. When we simplify
and focus our execution against this mission, it's easy for our associates to
prioritize what they have to do to serve our customers.

"I'm confident about our long-term strategy and the direction Walmart is
headed," Duke added. "Our expectations about our U.S. businesses' performance,
coupled with more discipline in International, will allow us to improve our
performance throughout the year."

Duke also noted that e-commerce sales grew more than 30 percent in the first
quarter versus last year.

"There is no doubt that our company is making the right investments in
e-commerce to differentiate ourselves and become a better Walmart," said Duke.
"And with our sales growth in the first quarter, we believe our investments
are paying off."

Leverage

The company's operating expense leverage was relatively flat for the first
quarter, but the commitment to leverage for the full year remains a priority.

"We are proud that our U.S. segments leveraged operating expenses in the first
quarter, and we expect them to continue leveraging," said Duke. "To operate in
a difficult sales environment requires disciplined expense and productivity
management, the core of EDLC and EDLP. We are committed to have the total
company achieve expense leverage for the year."

"Although we believe our company will leverage expenses for the year, the
second quarter will be challenging, given expense pressures in International
and our corporate area," said Charles Holley, executive vice president and
chief financial officer. "Expense leverage may not be delivered evenly across
the quarters, but we believe that by executing our plans, we will continue to
reduce expenses and improve productivity."

^1 See additional information at the end of this release regarding non-GAAP
financial measures

Strong returns

"We deployed cash to grow our business and return value to shareholders," said
Holley. "Despite the multiple headwinds during the quarter, we grew operating
profits ahead of sales growth. Our balance sheet is strong, and we continue to
grow."

During the first quarter, the company repurchased approximately 30 million
shares for $2.2 billion. In addition, the company paid $1.6 billion in
dividends. As previously announced, the company increased its dividend by 18
percent for fiscal 2014 to $1.88 per share.

Return on investment^1 (ROI) for the trailing 12 months ended April 30, 2013
was 17.8 percent, compared to 18.1 percent for the prior trailing 12 months
ended April 30, 2012. The decline was primarily the result of acquisitions,
along with an increase in fixed assets within Walmart's base business.

Walmart ended the quarter with free cash flow^1 of $1.9 billion, compared to
$3.1 billion in the prior year. An increase in income tax payments due
primarily to changes in federal bonus depreciation rules and an increase in
capital expenditures contributed to the free cash flow decline.

EPS Guidance

"Given current business and economic trends, including currency, we expect
second quarter EPS to be in the range of $1.22 to $1.27," said Holley.
"Investments in Global eCommerce initiatives were forecast to have an
incremental $0.09 impact for fiscal 2014, and this remains in our guidance. We
expect the Q2 impact to be in line with the $0.02 per share we had in the
first quarter. In addition to eCommerce initiatives, expenses related to FCPA
matters are expected to range from $65 to $70 million for the second quarter."

Last year, Walmart delivered $1.18 in EPS for the second quarter.

Net sales results

Net sales, including fuel, were as follows:

                          Three Months Ended
                              April 30,
(dollars in billions)         2013          2012          Percent
                                                              Change
Walmart U.S.                  $ 66.553        $ 66.333        0.3  %
Walmart International         33.005          32.077          2.9  %
Sam’s Club                    13.871         13.854         0.1  %
Consolidated                  $ 113.429      $ 112.264      1.0  %

The following explanations provide additional context to the above table.

  *Last year's net sales included an extra day for leap year, which added
    approximately 1.0 percent growth in the first quarter of last year.
  *On a constant currency basis,^1 Walmart International's net sales would
    have been $33.8 billion, an increase of 5.4 percent over last year.
  *Net sales for Sam's Club, excluding fuel, were $12.2 billion, an increase
    of 0.5 percent from last year.

^1 See additional information at the end of this release regarding non-GAAP
financial measures.

  *Consolidated net sales, on a constant currency basis,^1 would have
    increased 1.8 percent to $114.2 billion.

"On a constant currency basis,^1 Walmart International's first quarter sales
were $33.8 billion, up 5.4 percent. Our stores in the U.K., Africa, Mexico,
Central America, Brazil, Chile, Argentina, China and India delivered positive
comp sales," said Doug McMillon, Walmart International president and CEO.
"Comps in Canada and Japan declined. We grew our share^2 in seven of our
eleven markets."

Segment operating income

Segment operating income was as follows:

                                Three Months Ended
                                    April 30,
(dollars in billions)               2013        2012        Percent 
                                                                Change
Walmart U.S.                        $ 5.329       $ 5.033       5.9     %
Walmart International               1.256         1.318         -4.7    %
Sam’s Club                          0.525        0.489        7.4     %
Sam's Club (excluding fuel)         0.519        0.487        6.6     %

U.S. comparable store sales review and guidance

The company reported U.S. comparable store sales based on its 13-week retail
calendar for the periods ended April 26, 2013 and April 27, 2012 as follows:

            Without Fuel                 With Fuel                    Fuel Impact
                Thirteen Weeks Ended            Thirteen Weeks Ended            Thirteen Weeks Ended
                4/26/2013    4/27/2012       4/26/2013    4/27/2012       4/26/2013    4/27/2012
Walmart         -1.4%          2.6%            -1.4%          2.6%            0.0%           0.0%
U.S.
Sam’s           0.2%           5.3%            -0.2%          6.2%            -0.4%          0.9%
Club
Total           -1.2%          3.0%            -1.2%          3.2%            0.0%           0.2%
U.S.

During the 13-week period, the Walmart U.S. comp was negatively impacted by a
delay in tax refund checks, challenging weather conditions, less grocery
inflation than expected and the payroll tax increase. Comp traffic was down
1.8 percent, while average ticket increased 0.4 percent.

"Despite comps being lower than expected, we continued to generate market
share gains," said Bill Simon, Walmart U.S. president and CEO. "According to
The Nielsen Company, we gained 20 basis points of market share^3 in the
measured category of 'food, consumables and health & wellness/OTC' during the
13-weeks ended Apr. 27, 2013."

For the 13-week period ending Jul. 26, Walmart U.S. expects comp store sales
to increase from flat to 2.0 percent. Last year, Walmart's comp sales rose 2.2
percent for the comparable period.

^1 See additional information at the end of this release regarding non-GAAP
financial measures.

^2 Sources: Africa: Statistics South Africa, Argentina: The Nielsen Company,
Canada: The Nielsen Company, Central America: The Nielsen Company, Chile:
National Statistics Institute (INE), China: National Bureau of Statistics of
China (NBSC), Japan: Ministry of Economy, Trade and Industry (METI).

^3 Sources: The Nielsen Company, 13 weeks ended Apr. 27, 2013.

"The second quarter is off to a good start, with positive comps," Simon said.
"We continue to believe in the strength of our strategic plan to deliver a
broad assortment with EDLP. We also continue to monitor the impact of the 2
percent payroll tax increase, along with other factors, like fuel prices."

In the first quarter, Sam's Club comp traffic was up 1.3 percent, while ticket
was down 1.1 percent for the 13-week period ended Apr. 26.

"Comp sales for the first quarter were impacted by unfavorable weather and
less than expected inflation," said Rosalind Brewer, Sam's Club president and
CEO. "Our business member is an integral part of our business, and comp sales
and traffic patterns indicated that they remained pressured in the first
quarter. Small business optimism remains at historically low levels, as
businesses adapt to higher payroll taxes and cautious consumers."

As of May 15, Sam's Club increased its membership fee to $45 nationwide for
both Advantage and Business base memberships, reflecting a $5 and $10
increase, respectively. The fee for Plus membership remains $100. This is
Sam's Club's first fee increase since Jan. 2006.

"The combination of our strategies, including our membership fee increase,
positions us well for the second quarter, and we have a number of events to
drive sales," said Brewer. "Members will experience exciting merchandise,
heightened by local brands, all displayed with a new level of visual
excitement."

Sam's Club expects comp sales, excluding fuel, for the current 13-week period
ending Jul. 26, 2013, to increase from 1.0 to 3.0 percent. Last year, for the
13-week period, comp sales, excluding fuel, increased 4.2 percent.

Walmart U.S. and Sam's Club will report comparable sales for the 13-week
period ending Jul. 26 on Aug. 15, when the company reports second quarter
results. For fiscal year 2014, Walmart will report comparable store sales on a
53-week basis, with 4-5-5 week reporting for the fourth quarter.

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and
live better -- anytime and anywhere -- in retail stores, online, and through
their mobile devices. Each week, more than 245 million customers and members
visit our 10,857 stores under 69 banners in 27 countries and e-commerce
websites in 10 countries. With fiscal year 2013 sales of approximately $466
billion, Walmart employs more than 2 million associates worldwide. Walmart
continues to be a leader in sustainability, corporate philanthropy and
employment opportunity. Additional information about Walmart can be found by
visiting http://corporate.walmart.com, and on Facebook at
http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.
Online merchandise sales are available at http://www.walmart.com and
http://www.samsclub.com.

Notes

After this earnings release has been furnished to the Securities and Exchange
Commission (SEC), a pre-recorded call offering additional comments on the
quarter will be available to all investors. Please note: Walmart has a new
phone number for accessing the pre-recorded call. The conference call can also
be accessed via webcast by clicking here. Callers within the U.S. and Canada
may dial 877-523-5612 and enter passcode 9256278. All other callers can access
the call by dialing 201-689-8483 and entering passcode 9256278. Information
included in this release, including reconciliations, and the pre-recorded
phone call are available in the investor information area on the company's
website at www.stock.walmart.com.

Editor's Note

High resolution photos of Walmart's U.S., Sam's Club and International
operations are available for download at www.stock.walmart.com.

Forward Looking Statements

This release contains statements as to Wal-Mart Stores, Inc. management's
forecasts or estimates of the company's diluted earnings per share from
continuing operations attributable to Walmart for the fiscal quarter ending
Jul. 31, 2013 (and statements of certain assumptions underlying such
forecasts), of the incremental impact of the company's investments in Global
eCommerce initiatives on earnings per share for the quarter ending Jul. 31,
2013 and the year ending January 31, 2014, of the comparable store sales of
the Walmart U.S. segment of the company and the comparable club sales,
excluding fuel, of the Sam's Club segment of the company for the 13-week
period from April 27, 2013 through Jul. 26, 2013 and of the costs in the
second quarter of fiscal year 2014 associated with the FCPA and compliance
matters and management's expectations that Walmart will leverage expenses for
the year ending January 31, 2014, that the company's U.S. operations will
continue to leverage expenses and that the company will continue to reduce
expenses and improve productivity that the company 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. Those statements can be identified by the use of the word or phrase
"expect," “expects,' "forecast," "given," "guidance," “will be,” "will
continue," and "will leverage" in the statements or relating to such
statements. These forward-looking statements are subject to risks,
uncertainties and other factors, domestically and internationally, including:
general economic conditions; economic conditions affecting specific markets in
which we operate; competitive pressures; inflation and deflation; consumer
confidence, disposable income, credit availability, spending patterns and debt
levels; customer traffic in Walmart's stores and clubs, average ticket size,
the seasonality of Walmart's business and seasonal buying patterns in the
United States and other markets; geo-political conditions and events; weather
conditions and events and their effects; catastrophic events and natural
disasters and their effects on Walmart's business; public health emergencies;
civil unrest and disturbances and terrorist attacks; commodity prices; the
cost of goods Walmart sells; transportation costs; the cost of diesel fuel,
gasoline, natural gas and electricity; the selling prices of gasoline;
disruption of Walmart's supply chain, including transport of goods from
foreign suppliers; trade restrictions; changes in tariff and freight rates;
labor costs; the availability of qualified labor pools in Walmart's markets;
changes in employment laws and regulations, the cost of healthcare and other
benefits; casualty and other insurance costs; accident-related costs; the
availability of investment opportunities relating to Walmart's Global
eCommerce initiatives, adoption of or changes in tax and other laws and
regulations that affect Walmart's business, including changes in corporate tax
rates; developments in, and the outcome of, legal and regulatory proceedings
to which Walmart is a party or is subject and the costs associated therewith;
currency exchange rate fluctuations; changes in market interest rates;
conditions and events affecting domestic and global financial and capital
markets; and other risks. The company discusses certain of the factors
described above more fully in certain of its filings with the SEC, including
its most recent annual report on Form 10-K filed with the SEC (in which the
company also discusses other factors that may affect its operations, results
of operations and comparable store and club sales) 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 its quarterly reports on Form 10-Q and
current reports on Form 8-K, made with the SEC through the date of this
release. The company urges readers 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 contained in this release are as of the date of this release, and
Walmart undertakes no obligation to update these forward-looking statements to
reflect subsequent events or circumstances.


Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Income

(Unaudited)
                              
                                   Three Months Ended
SUBJECT TO                         April 30,                                 
RECLASSIFICATION
(Dollars in millions,              2013           2012           Percent
except share data)                                                     Change
Revenues:
Net sales                          $ 113,429         $ 112,264         1.0   %
Membership and other               758              746              1.6   %
income
Total revenues                     114,187           113,010           1.0   %
Costs and expenses:
Cost of sales                      86,027            85,178            1.0   %
Operating, selling,
general and administrative         21,704           21,445           1.2   %
expenses
Operating income                   6,456             6,387             1.1   %
Interest:
Debt                               507               503               0.8   %
Capital leases                     67                70                -4.3%
Interest income                    (44       )       (38       )       15.8  %
Interest, net                      530              535              -0.9%
Income before income taxes         5,926             5,852             1.3   %
Provision for income taxes         1,981            1,958            1.2   %
Consolidated net income            3,945             3,894             1.3   %
Less consolidated net
income attributable to             (161      )       (152      )       5.9   %
noncontrolling interest
Consolidated net income            $ 3,784          $ 3,742          1.1   %
attributable to Walmart
                                                                       
Net income per common
share:
Basic net income per
common share attributable          $ 1.15            $ 1.10            4.5   %
to Walmart
Diluted net income per
common share attributable          1.14              1.09              4.6   %
to Walmart
                                                                       
Weighted-average common
shares outstanding:
Basic                              3,301             3,409
Diluted                            3,318             3,425
                                                                       
Dividends declared per             $ 1.88            $ 1.59
common share


Wal-Mart Stores, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)
                                                        
SUBJECT TO
RECLASSIFICATION
(Dollars in millions)          April 30,         January 31,       April 30,
ASSETS                         2013              2013              2012
Current assets:
Cash and cash                  $ 8,855           $ 7,781           $ 8,117
equivalents
Receivables, net               6,191             6,768             5,574
Inventories                    43,138            43,803            41,284
Prepaid expenses and           1,992            1,588            2,301     
other
Total current assets           60,176            59,940            57,276
Property and
equipment:
Property and equipment         167,087           165,825           158,329
Less accumulated               (53,395   )       (51,896   )       (47,600   )
depreciation
Property and                   113,692           113,929           110,729
equipment, net
Property under capital
leases:
Property under capital         5,893             5,899             5,978
leases
Less accumulated               (3,154    )       (3,147    )       (3,235    )
amortization
Property under capital         2,739             2,752             2,743
leases, net
                                                                   
Goodwill                       19,734            20,497            21,003
Other assets and               5,846            5,987            5,349     
deferred charges
Total assets                   $ 202,187        $ 203,105        $ 197,100 
                                                                   
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings          $ 6,255           $ 6,805           $ 5,799
Accounts payable               36,770            38,080            37,068
Dividends payable              4,649             —                 4,059
Accrued liabilities            17,282            18,808            16,661
Accrued income taxes           2,318             2,211             2,560
Long-term debt due             5,967             5,587             2,509
within one year
Obligations under
capital leases due             311              327              322       
within one year
Total current                  73,552            71,818            68,978
liabilities
                                                                   
Long-term debt                 41,536            38,394            42,956
Long-term obligations          3,015             3,023             3,040
under capital leases
Deferred income taxes          7,694             7,613             7,735
and other
Redeemable
noncontrolling                 549               519               456
interest
                                                                   
Commitments and
contingencies
                                                                   
Equity:
Common stock                   329               332               339
Capital in excess of           3,399             3,620             3,625
par value
Retained earnings              68,489            72,978            65,463
Accumulated other
comprehensive income           (1,968    )       (587      )       (463      )
(loss)
Total Walmart                  70,249            76,343            68,964
shareholders’ equity
Nonredeemable
noncontrolling                 5,592            5,395            4,971     
interest
Total equity                   75,841           81,738           73,935    
Total liabilities and          $ 202,187        $ 203,105        $ 197,100 
equity


Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)
                                                
                                                     Three Months Ended
SUBJECT TO RECLASSIFICATION                          April 30,
(Dollars in millions)                                2013         2012
Cash flows from operating activities:
Consolidated net income                              $ 3,945         $ 3,894
Adjustments to reconcile consolidated net
income to net cash provided by operating
activities:
Depreciation and amortization                        2,194           2,106
Deferred income taxes                                128             (149    )
Other operating activities                           (370    )       (413    )
Changes in certain assets and liabilities:
Receivables, net                                     567             494
Inventories                                          584             (150    )
Accounts payable                                     (743    )       (21     )
Accrued liabilities                                  (1,527  )       (1,714  )
Accrued income taxes                                 116            1,387   
Net cash provided by operating activities            4,894           5,434
                                                                     
Cash flows from investing activities:
Payments for property and equipment                  (2,968  )       (2,375  )
Proceeds from the disposal of property and           35              50
equipment
Other investing activities                           (63     )       (111    )
Net cash used in investing activities                (2,996  )       (2,436  )
                                                                     
Cash flows from financing activities:
Net change in short-term borrowings                  (551    )       1,763
Proceeds from issuance of long-term debt             4,977           5
Payments of long-term debt                           (1,088  )       (545    )
Dividends paid                                       (1,549  )       (1,352  )
Purchase of Company stock                            (2,246  )       (1,589  )
Other financing activities                           (284    )       (89     )
Net cash used in financing activities                (741    )       (1,807  )
                                                                     
Effect of exchange rates on cash and cash            (83     )       376     
equivalents
                                                                     
Net increase in cash and cash equivalents            1,074           1,567
Cash and cash equivalents at beginning of            7,781          6,550   
year
Cash and cash equivalents at end of period           $ 8,855        $ 8,117 


Wal-Mart Stores, Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)
(In millions, except per share data)

The following information provides reconciliations of certain non-GAAP
financial measures presented in the press release to which this reconciliation
is attached to the most directly comparable financial measures calculated and
presented in accordance with generally accepted accounting principles
("GAAP"). The company has provided the non-GAAP financial information
presented in the press release, which is not calculated or presented in
accordance with GAAP, as information supplemental and in addition to the
financial measures presented in the press release that are calculated and
presented in accordance with GAAP. Such non-GAAP financial measures should not
be considered superior to, as a substitute for, or as an alternative to, and
should be considered in conjunction with the GAAP financial measures presented
in the press release. The non-GAAP financial measures in the press release may
differ from similar measures used by other companies.

Calculation of Return on Investment and Return on Assets

Management believes return on investment ("ROI") is a meaningful metric to
share with investors because it helps investors assess how effectively Walmart
is deploying its assets. Trends in ROI can fluctuate over time as management
balances long-term potential strategic initiatives with any possible
short-term impacts.

ROI was 17.8 percent and 18.1 percent for the trailing twelve months ended
April 30, 2013 and 2012, respectively. The decline was primarily the result of
acquisitions, along with an increase in fixed assets within our base business.

We define ROI as adjusted operating income (operating income plus interest
income, depreciation and amortization, and rent expense) for the fiscal year
divided by average invested capital during that period. We consider average
invested capital to be the average of our beginning and ending total assets,
plus accumulated depreciation and amortization less accounts payable and
accrued liabilities for that period, plus a rent factor equal to the rent for
the fiscal year multiplied by a factor of eight. When we have discontinued
operations, we exclude the impact of the discontinued operations.

ROI is considered a non-GAAP financial measure under the SEC's rules. We
consider return on assets ("ROA") to be the financial measure computed in
accordance with GAAP that is the most directly comparable financial measure to
ROI as we calculate that financial measure. ROI differs from ROA (which is
consolidated net income for the period divided by average total assets for the
period) because ROI: adjusts operating income to exclude certain expense items
and adds interest income; adjusts total assets for the impact of accumulated
depreciation and amortization, accounts payable and accrued liabilities; and
incorporates a factor of rent to arrive at total invested capital.

Although ROI is a standard financial metric, numerous methods exist for
calculating a company's ROI. As a result, the method used by Walmart's
management to calculate ROI may differ from the methods other companies use to
calculate their ROI. We urge you to understand the methods used by other
companies to calculate their ROI before comparing our ROI to that of such
other companies.

The calculation of ROI, along with a reconciliation to the calculation of ROA,
the most comparable GAAP financial measure, is as follows:

Wal-Mart Stores, Inc.
Return on Investment and Return on Assets
                                            Trailing Twelve Months Ended
                                                April 30,
(Dollars in millions)                            2013           2012
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income                                 $ 27,870          $ 27,049
+ Interest income                                193               157
+ Depreciation and                               8,589             8,251
amortization
+ Rent                                           2,631            2,515     
Adjusted operating income                        $ 39,283         $ 37,972  
                                                                   
Denominator
Average total assets^1                           $ 199,644         $ 191,663
+ Average accumulated
depreciation and                                 53,692            49,761
amortization^1
- Average accounts                               36,919            35,775
payable^1
- Average accrued                                16,972            16,334
liabilities^1
+ Rent x 8                                       21,048           20,120    
Average invested capital                         $ 220,493        $ 209,435 
Return on investment (ROI)                       17.8      %       18.1      %
                                                                   
CALCULATION OF RETURN ON ASSETS
Numerator
Consolidated net income                          $ 17,807         $ 16,770  
Denominator
Average total assets^1                           $ 199,644        $ 191,663 
Return on assets (ROA)                           8.9       %       8.7       %
                                                                   
                                    As of April 30,
Certain Balance Sheet Data          2013         2012              2011
Total assets                        $ 202,187    $ 197,100         $ 186,225
Accumulated depreciation            56,549       50,835            48,686
and amortization
Accounts payable                    36,770       37,068            34,481
Accrued liabilities                 17,282       16,661            16,006

^1 The average is based on the addition of the account balance at the end of
the current period to the account balance at the end of the prior period and
dividing by 2.

Free Cash Flow

We define free cash flow as net cash provided by operating activities in a
period minus payments for property and equipment made in that period. Free
cash flow was $1.9 billion and $3.1 billion for the three months ended April
30, 2013 and 2012, respectively. An increase in income tax payments due
primarily to changes in federal bonus depreciation rules and an increase in
capital expenditures contributed to the free cash flow decline.

Free cash flow is considered a non-GAAP financial measure. Management
believes, however, that free cash flow, which measures our ability to generate
additional cash from our business operations, is an important financial
measure for use in evaluating the company's financial performance. Free cash
flow should be considered in addition to, rather than as a substitute for
consolidated net income as a measure of our performance and net cash provided
by operating activities as a measure of our liquidity.

Additionally, Walmart's definition of free cash flow is limited, in that it
does not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the payments
required for debt service and other contractual obligations or payments made
for business acquisitions. Therefore, we believe it is important to view free
cash flow as a measure that provides supplemental information to our condensed
consolidated statements of cash flows.

Although other companies report their free cash flow, numerous methods may
exist for calculating a company's free cash flow. As a result, the method used
by our management to calculate our free cash flow may differ from the methods
other companies use to calculate their free cash flow. We urge you to
understand the methods used by other companies to calculate their free cash
flow before comparing our free cash flow to that of such other companies.

The following table sets forth a reconciliation of free cash flow, a non-GAAP
financial measure, to net cash provided by operating activities, which we
believe to be the GAAP financial measure most directly comparable to free cash
flow, as well as information regarding net cash used in investing activities
and net cash used in financing activities.

                                              For the three months ended
                                                  April 30,
(Dollars in millions)                             2013          2012
Net cash provided by operating activities         $ 4,894          $ 5,434
Payments for property and equipment               (2,968   )       (2,375   )
Free cash flow                                    $ 1,926         $ 3,059  
                                                                   
Net cash used in investing activities^1           $ (2,996 )       $ (2,436 )
Net cash used in financing activities             $ (741   )       $ (1,807 )

^1 "Net cash used in investing activities" includes payments for property and
equipment, which is also included in our computation of free cash flow.

Constant Currency

In discussing our operating results, the term currency exchange rates refers
to the currency exchange rates we use to convert the operating results for all
countries where the functional currency is not the U.S. dollar. We calculate
the effect of changes in currency exchange rates as the difference between
current period activity translated using the current period's currency
exchange rates, and the comparable prior year period's currency exchange
rates. Throughout our discussion, we refer to the results of this calculation
as the impact of currency exchange rate fluctuations. When we refer to
constant currency operating results, this means operating results without the
impact of the currency exchange rate fluctuations and without the impact of
acquisitions until the acquisitions are included in both comparable periods.
The disclosure of constant currency amounts or results permits investors to
understand better Walmart's underlying performance without the effects of
currency exchange rate fluctuations or acquisitions.

The table below reflects the calculation of constant currency for net sales
and operating income for the three months ended April 30, 2013.

                      Three Months Ended                                
                          April 30, 2013
                          International            Consolidated         
(Dollars in               2013         Percent       2013          Percent
millions)                                Change                        Change
Net sales:
As reported               $ 33,005       2.9  %        $ 113,429       1.0  %
Currency exchange
rate                      1,010                      1,010          
fluctuations^1
                          34,015                       114,439
Net sales from            (200     )                  (200      )     
acquisitions
Constant currency         $ 33,815      5.4  %        $ 114,239      1.8  %
net sales
                                                                       
Operating income:
As reported               $ 1,256        -4.7%         $ 6,456         1.1  %
Currency exchange
rate                      (7       )                  (7        )     
fluctuations^1
                          1,249                        6,449
Operating loss            37                         37             
from acquisitions
Constant currency         $ 1,286       -2.4%         $ 6,486        1.6  %
operating income

^1 Excludes currency exchange rate fluctuations related to acquisitions until
the acquisitions are included in both comparable periods.

Contact:

Wal-Mart Stores, Inc.
Media Relations Contact
Randy Hargrove, 800-331-0085
or
Investor Relations Contact
Carol Schumacher, 479-277-1498
or
Pre-recorded management call
877-523-5612 (U.S. and Canada)
201-689-8483 (other countries)
Passcode: 9256278 (Walmart)
For webcast version click here