Walmart reports Q2 EPS of $1.24, up 5.1 percent, and adds $2.7 billion in net sales

  Walmart reports Q2 EPS of $1.24, up 5.1 percent, and adds $2.7 billion in
  net sales

  *Wal-Mart Stores, Inc. (Walmart) reported second quarter diluted earnings
    per share (EPS) of $1.24, a 5.1 percent increase compared to last year's
    $1.18. EPS for the quarter was impacted by approximately $0.01 due to a
    charge for a certain non-income tax matter recorded in operating expenses
    within Walmart International.
  *Walmart U.S. comp sales declined 0.3 percent in the 13-week period from
    Apr. 27 to Jul. 26, 2013. Comp traffic, while negative, improved
    approximately 130 basis points from the first quarter. Walmart U.S. gained
    market share^1 in the measured category of "food, consumables and health &
    wellness/OTC."
  *Comp sales, without fuel,^2 at Sam's Club were up 1.7 percent during the
    13-week period.
  *Walmart International grew net sales 2.9 percent to $33.0 billion. On a
    constant currency basis,^2 net sales would have increased 4.4 percent to
    $33.4 billion.
  *Consolidated net sales reached $116.2 billion, an increase of $2.7
    billion, or 2.4 percent. Currency exchange rate fluctuations had a
    negative impact on net sales of $680 million.
  *Consolidated operating income was $6.8 billion, an increase of 1.4 percent
    over last year. Walmart U.S. grew operating income by 5.2 percent. Sam's
    Club grew operating income, without fuel,^2 by 8.0 percent.
  *Walmart reported free cash flow^2 of $5.2 billion for the six months ended
    Jul. 31, 2013.
  *The company returned $3.4 billion to shareholders through dividends and
    share repurchases.
  *Walmart updated full-year EPS guidance to a range of $5.10 to $5.30 from
    the previous range of $5.20 to $5.40. This new range includes third
    quarter EPS guidance of $1.11 to $1.16.
  *Walmart U.S. expects comp sales for the 13-week period ending Oct. 25 to
    be relatively flat. Last year's comp for the comparable period was 1.5
    percent.
  *Sam's Club expects comp sales, excluding fuel,^2 for the 13-week period
    ending Oct. 25 to be between flat and 2 percent. Last year's comp,
    excluding fuel,^2 for the comparable period was 2.7 percent.

^1 Source: The Nielsen Company, 13-weeks ended Jul. 20, 2013.

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

Business Wire

BENTONVILLE, Ark. -- August 15, 2013

Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the
second quarter ended Jul. 31, 2013. Net sales were $116.2 billion, an increase
of 2.4 percent over last year. On a constant currency basis,^1 net sales would
have increased 2.8 percent to $116.7 billion. Membership and other income
decreased 4.3 percent versus last year. Total revenue was $116.9 billion, an
increase of $2.7 billion, or 2.3 percent over last year.

Consolidated net income attributable to Walmart was $4.1 billion, up 1.3
percent. Diluted earnings per share attributable to Walmart (EPS) were $1.24,
a 5.1 percent increase, compared to $1.18 last year. EPS for the quarter was
impacted by approximately $0.01 due to a charge for a certain non-income tax
matter recorded in operating expenses within Walmart International.

Solid earnings performance

"We delivered a solid increase in earnings per share for the second quarter,"
said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer.
"Consolidated net sales and our Walmart U.S. comp were below expectations.
While the retail environment was challenging across all of our markets, the
Walmart U.S. and Sam's Club businesses improved comp sales from the first
quarter, and the growth of International sales was consistent.

"I'm encouraged by our position to execute in the second half of the year,
particularly with the steps we're taking to improve performance," said Duke.
"There are areas of our business where we can do a better job, and we will.
I'm confident in our associates' abilities to deliver for our customers with
EDLP and for shareholders with improved expense savings."

Leverage

The company did not leverage operating expenses during the second quarter, due
to softer than expected sales and higher investment in key areas.

"We are pleased that our U.S. segments leveraged expenses for the first half,"
said Duke. "While it will be difficult, we believe the steps we're taking to
control costs, especially in International, will bring us closer to our
full-year leverage goal. We will continue to invest in leverage initiatives,
compliance and e-commerce as we focus on future growth."

Returns

"We were pleased with our Q2 growth in earnings per share, especially in light
of the current retail environment," said Charles Holley, executive vice
president and chief financial officer. "The company generated solid cash flows
from operations, and we continue to deliver strong consistent returns to
shareholders."

During the second quarter, the company repurchased approximately 24 million
shares for $1.9 billion. In addition, the company paid $1.5 billion in
dividends.

Return on investment^1 (ROI) for the trailing 12-months ended Jul. 31, 2013
was 17.9 percent, compared to 18.1 percent for the prior trailing 12-months
ended Jul. 31, 2012. The decline was primarily the result of acquisitions,
along with an increase in fixed assets within Walmart's base business.

Free cash flow^1 was $5.2 billion for the six months ended Jul. 31, 2013,
compared to $6.1 billion in the prior year. The timing of the tax payments and
growth of capital expenditures were the primary drivers of the decline.

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

Net sales guidance

"The retail environment remains challenging in the U.S. and our international
markets, as customers are cautious in their spending. Net sales in the first
six months were below our expectations, so we are updating our forecast for
net sales to grow between 2 and 3 percent for the full year versus our
previous range of 5 to 6 percent," said Holley. "This revision reflects our
view of current global business trends, and significant ongoing headwinds from
anticipated currency exchange rate fluctuations."

EPS guidance

"Diluted earnings per share for the third quarter of fiscal year 2014 are
expected to range between $1.11 and $1.16. This compares to $1.08 per share
last year," said Holley. "For the full year, we are updating our EPS guidance
to range between $5.10 and $5.30 per share. This compares to our previous
range of $5.20 to $5.40. This guidance takes into account the challenging
sales and operating environment. As we've seen in the past, discrete tax items
have had a meaningful impact on our effective tax rate and reported results in
the back half of our fiscal years. We anticipate that a wider range of between
31 and 33 percent is now possible for our full year effective tax rate, versus
our previous range of 32 to 33 percent. In addition, we believe expenses for
FCPA matters and compliance programs will be between $75 and $80 million for
both the third and fourth quarters."

Net sales results

Net sales, including fuel, were as follows:

                 Three Months Ended                        Six Months Ended
                    July 31,                                    July 31,
(dollars in         2013          2012          Percent   2013          2012          Percent
billions)                                           Change                                      Change
Walmart U.S.        $ 68.728      $ 67.343      2.1  %      $ 135.281     $ 133.676     1.2  %
Walmart             32.956          32.016          2.9  %      65.961          64.093          2.9  %
International
Sam’s Club          14.532       14.161       2.6  %    28.403       28.015       1.4  %
Consolidated        $ 116.216    $ 113.520    2.4  %    $ 229.645    $ 225.784    1.7  %

The following explanations provide additional context to the above table.

  *On a constant currency basis,^1 Walmart International's net sales would
    have been $33.4 billion, an increase of 4.4 percent over last year.
  *Net sales for Sam's Club, excluding fuel,^1 were $12.8 billion, an
    increase of 2.4 percent from last year.
  *Consolidated net sales, on a constant currency basis,^1 would have
    increased 2.8 percent to $116.7 billion.

"Across our International markets, growth in consumer spending is under
pressure," said Doug McMillon, Walmart International president and CEO.
"Consumers in both mature and emerging markets curbed their spending during
the second quarter, and this led to softer than expected sales. While this
creates a challenging sales environment, we are the best equipped retailer to
address the needs of our customers and help them save money.

"We expect the third and fourth quarters to be better than our results in the
first half, and we are working hard to deliver operating expense leverage for
Walmart International," added McMillon.

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

Segment operating income

Segment operating income was as follows:

                 Three Months Ended                       Six Months Ended
                    July 31,                                    July 31,
(dollars in         2013        2012        Percent     2013         2012         Percent  
billions)                                       Change                                        Change
Walmart U.S.        $ 5.521     $ 5.248     5.2     %       $ 10.850     $ 10.281     5.5     %
Walmart             1.465         1.484         -1.3    %       2.721          2.802          -2.9    % 
International
Sam’s Club          0.551      0.535      3.0     %    1.076       1.024       5.1     % 
Sam's Club
(excluding          0.552      0.511      8.0     %    1.071       0.998       7.3     % 
fuel)

U.S. comparable store sales review and guidance

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

           Without Fuel                  With Fuel                     Fuel Impact
              Thirteen Weeks Ended          Thirteen Weeks Ended          Thirteen Weeks Ended
              7/26/2013    7/27/2012    7/26/2013    7/27/2012    7/26/2013    7/27/2012 
Walmart       -0.3      %   2.2       %     -0.3      %   2.2       %     0.0       %   0.0       %
U.S.
Sam’s         1.7       %   4.2       %   1.7       %   3.4       %   0.0       %   -0.8      %
Club
Total         0.0       %   2.5       %   0.1       %   2.4       %   0.1       %   -0.1      %
U.S.

           Without Fuel                  With Fuel                     Fuel Impact
              Twenty-Six Weeks Ended        Twenty-Six Weeks Ended        Twenty-Six Weeks Ended
              7/26/2013    7/27/2012    7/26/2013    7/27/2012    7/26/2013    7/27/2012 
Walmart       -0.8      %   2.4       %     -0.8      %   2.4       %     0.0       %   0.0       %
U.S.
Sam’s         0.9       %   4.7       %   0.8       %   4.8       %   -0.1      %   0.1       %
Club
Total         -0.6      %   2.8       %   -0.6      %   2.8       %   0.0       %   0.0       %
U.S.

During the 13-week period, the Walmart U.S. comp was negatively impacted by
lower consumer spending due to the payroll tax increase and lower inflation
than expected. Comp traffic decreased 0.5 percent, while average ticket
increased 0.2 percent.

"While I'm disappointed in our comp sales decline, I'm encouraged by the
improvement in traffic and comp sales as we progressed through the quarter.
The 2 percent payroll tax increase continues to impact our customer," said
Bill Simon, Walmart U.S. president and CEO. "Furthermore, we also expected an
increase in the level of grocery inflation, which did not materialize in a
meaningful way. We were pleased that both home and apparel had positive comps.

"We also continued to gain market share across several categories. According
to The Nielsen Company, we gained 14 basis points of market share in the
measured category of 'food, consumables and health & wellness/OTC' during the
13-weeks ending July 20," added Simon.

For the 13-week period ending Oct. 25, Walmart U.S. expects comp store sales
to be relatively flat. Last year, Walmart's comp sales rose 1.5 percent for
the comparable period.

"We continue to execute on initiatives to drive our business," said Simon.
"Our strategy is sound, our pricing position is solid and our ability to
leverage operating expenses is strong."

In the second quarter, Sam's Club comp traffic was up 2.7 percent, while
ticket was down 1.0 percent.

"Sam's Club generated a comp of 1.7 percent, without fuel,^1 for the 13-week
period," said Rosalind Brewer, Sam's Club president and CEO. "Sales were up,
traffic continued to improve, and comp sales were within our guidance.
Response to our recent membership enhancements has been favorable, resulting
in solid membership income growth and positive response to our Instant Savings
Book. We were pleased with our improvement in business member traffic,
reversing the decrease from the prior quarter."

Sam's Club expects comp sales, excluding fuel,^1 for the current 13-week
period ending Oct. 25, to range between flat and 2 percent. Last year for the
13-week period, comp sales, excluding fuel,^1 increased 2.7 percent.

"The core business at Sam's Club is strong," added Brewer. "I'm confident that
the steps we are executing today to strengthen our value proposition will
benefit Sam's over the long term."

Walmart U.S. and Sam's Club will report comparable sales for the 13-week
period ending Oct. 25 on Nov. 14, when the company reports third 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 10,955 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, 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. Information included in this
release, including reconciliations, and the pre-recorded phone call can be
accessed via webcast by visiting the investor information area on the
company's website at www.stock.walmart.com, or 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.

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.

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

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
attributable to Walmart for the fiscal quarter ending Oct. 31, 2013 and for
the fiscal year to end Jan. 31, 2014, of the consolidated net sales growth of
the company for the fiscal year to end Jan. 31, 2014, and 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 Jul. 27, 2013 through Oct. 25, 2013 (and statements of
certain assumptions underlying certain of such forecasts), management's
expectation that it is possible for the company's effective tax rate for all
of the fiscal year to end Jan. 31, 2014 to be within a certain range,
management's expectations regarding the costs to be incurred in each of the
third and fourth quarters of the fiscal year to end Jan. 31, 2014 associated
with the FCPA matters and compliance programs, and management's expectations
that the company will continue to invest in leverage initiatives, compliance
and e-commerce, that the steps being taken by the company will bring the
company closer to its goal of leveraging expenses for the full fiscal year to
end Jan. 31, 2014 and that the third and fourth quarter results of the Walmart
International segment will be better than the results of the Walmart
International segment for the first half of the fiscal year to end Jan. 31,
2014, 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 "are expected," "are updating,"
"anticipate," "expect," "expects," "forecast," "guidance," "will be," "will
bring," and "will continue" 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; business trends in the company's markets; economic conditions
affecting specific markets in which we operate; competitive pressures; the
amount of inflation or deflation that occurs, both generally and in certain
product categories; 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; the
requirements for expenditures in connection with the FCPA matters and
compliance programs; currency exchange rate fluctuations; changes in market
interest rates; conditions and events affecting domestic and global financial
and capital markets; and other risks. Management's expectation regarding the
company's effective tax rate for the fiscal year to end Jan. 31, 2013
discussed above is subject to management's expectation the company's effective
tax rate may fluctuate and be impacted by a number of factors, including
changes in the company's assessment of certain tax contingencies, valuation
allowances, tax law changes, audit results, discrete items and the mix of
earnings among the company's U.S. and International operations. 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                               Six Months Ended
SUBJECT TO             July 31,                                       July 31,                             
RECLASSIFICATION
(Dollars in                                                Percent                                      Percent
millions, except       2013           2012           Change      2013          2012          Change
share data)
Revenues:                                                                                        
Net sales              $ 116,216         $ 113,520         2.4   %      $ 229,645       $ 225,784       1.7  %
Membership and         729            762            (4.3  )%    1,487         1,508         (1.4 )%
other income
Total revenues         116,945           114,282           2.3   %      231,132         227,292         1.7  %
Costs and
expenses:
Cost of sales          87,455            85,643            2.1   %      173,482         170,821         1.6  %
Operating,
selling, general
and                    22,697         21,941         3.4   %     44,401        43,386        2.3  %
administrative
expenses
Operating income       6,793             6,698             1.4   %      13,249          13,085          1.3  %
Interest:
Debt                   522               487               7.2   %      1,029           990             3.9  %
Capital leases         67                68                (1.5  )%     134             138             (2.9 )%
Interest income        (36       )     (50       )     (28.0 )%    (80       )    (88       )    (9.1 )%
Interest, net          553            505            9.5   %     1,083         1,040         4.1  %
Income before          6,240             6,193             0.8   %      12,166          12,045          1.0  %
income taxes
Provision for          2,025          2,032          (0.3  )%    4,006         3,990         0.4  %
income taxes
Consolidated net       4,215             4,161             1.3   %      8,160           8,055           1.3  %
income
Less
consolidated net
income                 (146      )     (145      )     0.7   %     (307      )    (297      )    3.4  %
attributable to
noncontrolling
interest
Consolidated net
income                 $ 4,069        $ 4,016        1.3   %     $ 7,853       $ 7,758       1.2  %
attributable to
Walmart
                                                                                                        
Net income per
common share:
Basic net income
per common share       $ 1.24            $ 1.19            4.2   %      $ 2.39          $ 2.28          4.8  %
attributable to
Walmart
Diluted net
income per
common share           1.24              1.18              5.1   %      2.38            2.27            4.8  %
attributable to
Walmart
                                                                                                        
Weighted-average
common shares
outstanding:
Basic                  3,278             3,384                          3,290           3,396
Diluted                3,291             3,398                          3,305           3,411
                                                                                                        
Dividends
declared per           $ —               $ —                            $ 1.88          $ 1.59
common share

Wal-Mart Stores, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)
                                                           
SUBJECT TO RECLASSIFICATION
(Dollars in millions)              July 31,        January 31,     July 31,
ASSETS                             2013            2013            2012
Current assets:
Cash and cash equivalents          $ 9,016         $ 7,781         $ 7,935
Receivables, net                   5,996           6,768           5,365
Inventories                        42,793          43,803          40,558
Prepaid expenses and other         2,197          1,588          2,401     
Total current assets               60,002          59,940          56,259
Property and equipment:
Property and equipment             168,086         165,825         159,919
Less accumulated                   (54,724   )     (51,896   )     (48,961   )
depreciation
Property and equipment, net        113,362         113,929         110,958
Property under capital
leases:
Property under capital             5,763           5,899           5,859
leases
Less accumulated                   (3,131    )     (3,147    )     (3,170    )
amortization
Property under capital             2,632           2,752           2,689
leases, net
                                                                   
Goodwill                           19,280          20,497          20,081
Other assets and deferred          5,693          5,987          5,674     
charges
Total assets                       $ 200,969      $ 203,105      $ 195,661 
                                                                   
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings              $ 8,639         $ 6,805         $ 6,091
Accounts payable                   36,701          38,080          36,067
Dividends payable                  3,141           —               2,717
Accrued liabilities                18,616          18,808          17,777
Accrued income taxes               116             2,211           1,308
Long-term debt due within          4,692           5,587           4,029
one year
Obligations under capital          309            327            326       
leases due within one year
Total current liabilities          72,214          71,818          68,315
                                                                   
Long-term debt                     40,678          38,394          41,202
Long-term obligations under        2,907           3,023           2,975
capital leases
Deferred income taxes and          7,989           7,613           8,028
other
Redeemable noncontrolling          495             519             440
interest
                                                                   
Commitments and
contingencies
                                                                   
Equity:
Common stock                       327             332             338
Capital in excess of par           3,432           3,620           3,739
value
Retained earnings                  70,791          72,978          67,732
Accumulated other                  (2,889    )     (587      )     (1,531    )
comprehensive income (loss)
Total Walmart shareholders’        71,661          76,343          70,278
equity
Nonredeemable noncontrolling       5,025          5,395          4,423     
interest
Total equity                       76,686         81,738         74,701    
Total liabilities and equity       $ 200,969      $ 203,105      $ 195,661 

Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)
                                                
                                                     Six Months Ended
SUBJECT TO RECLASSIFICATION                          July 31,
(Dollars in millions)                                2013         2012
Cash flows from operating activities:
Consolidated net income                              $ 8,160         $ 8,055
Adjustments to reconcile consolidated net
income to net cash provided by operating
activities:
Depreciation and amortization                        4,417           4,233
Deferred income taxes                                475             (159    )
Other operating activities                           (204    )       (404    )
Changes in certain assets and liabilities:
Receivables, net                                     445             628
Inventories                                          569             237
Accounts payable                                     (324    )       (685    )
Accrued liabilities                                  (209    )       (456    )
Accrued income taxes                                 (2,078  )       146     
Net cash provided by operating activities            11,251          11,595
                                                                     
Cash flows from investing activities:
Payments for property and equipment                  (6,066  )       (5,522  )
Proceeds from the disposal of property and           112             158
equipment
Other investing activities                           158            (334    )
Net cash used in investing activities                (5,796  )       (5,698  )
                                                                     
Cash flows from financing activities:
Net change in short-term borrowings                  1,869           2,061
Proceeds from issuance of long-term debt             5,326           150
Payments of long-term debt                           (3,386  )       (589    )
Dividends paid                                       (3,092  )       (2,698  )
Purchase of Company stock                            (4,096  )       (3,429  )
Other financing activities                           (738    )       (273    )
Net cash used in financing activities                (4,117  )       (4,778  )
                                                                     
Effect of exchange rates on cash and cash            (103    )       266     
equivalents
                                                                     
Net increase in cash and cash equivalents            1,235           1,385
Cash and cash equivalents at beginning of            7,781          6,550   
year
Cash and cash equivalents at end of period           $ 9,016        $ 7,935 

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 17.9 percent and 18.1 percent for the trailing twelve months ended
July 31, 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.

Our calculation of ROI is considered a non-GAAP financial measure under the
SEC's rules because we calculate ROI using financial measures that exclude and
include amounts that are included and excluded in the most directly comparable
GAAP financial measure. Our calculation of ROI also incorporates a factor of
eight for rent expense that estimates the hypothetical capitalization of our
operating leases. 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
                                                  July 31,
(Dollars in millions)                             2013           2012
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income                                  $  27,965        $ 27,364
+ Interest income                                 179              185
+ Depreciation and                                8,685            8,336
amortization
+ Rent                                            2,664           2,570     
Adjusted operating income                         $  39,493       $ 38,455  
                                                                   
Denominator
Average total assets^1                            $  198,315       $ 194,767
+ Average accumulated
depreciation and                                  54,993           50,314
amortization^1
- Average accounts payable^1                      36,384           35,492
- Average accrued                                 18,197           17,810
liabilities^1
+ Rent x 8                                        21,312          20,560    
Average invested capital                          $  220,039      $ 212,339 
Return on investment (ROI)                        17.9       %     18.1      %
                                                                   
CALCULATION OF RETURN ON ASSETS
Numerator
Consolidated net income                           $  17,861       $ 16,994  
Denominator
Average total assets^1                            $  198,315      $ 194,767 
Return on assets (ROA)                            9.0        %     8.7       %
                                                                   
                                     As of July 31,
Certain Balance Sheet Data           2013         2012             2011
Total assets                         $ 200,969    $  195,661       $ 193,872
Accumulated depreciation and         57,855       52,131           48,497
amortization
Accounts payable                     36,701       36,067           34,917
Accrued liabilities                  18,616       17,777           17,843

^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 $5.2 billion and $6.1 billion for the six months ended July 31,
2013 and 2012, respectively. The timing of the tax payments and growth of
capital expenditures were the primary drivers of the 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.

                                             Six Months Ended
                                                July 31,
(Dollars in millions)                           2013         2012
Net cash provided by operating activities       $ 11,251       $ 11,595
Payments for property and equipment             (6,066   )     (5,522   )
Free cash flow                                  $ 5,185       $ 6,073  
                                                               
Net cash used in investing activities^1         $ (5,796 )     $ (5,698 )
Net cash used in financing activities           $ (4,117 )     $ (4,778 )

^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 and six months ended July 31, 2013.

                   Three Months Ended                                     Six Months Ended                                  
                       July 31, 2013                                              July 31, 2013
                       International            Consolidated                 International            Consolidated         
(Dollars in            2013         Percent       2013          Percent       2013         Percent       2013          Percent
millions)                             Change                        Change                       Change                        Change
Net sales:                                                                                                            
As reported            $ 32,956       2.9  %        $ 116,216       2.4  %        $ 65,961       2.9  %        $ 229,645       1.7  %
Currency
exchange rate          680                      680                       1,690                    1,690        
fluctuations^1
                       33,636                       116,896                       67,651                       231,335
Net sales from         (216     )                (216      )                (416     )                (416      )   
acquisitions
Constant
currency net           $ 33,420    4.4  %        $ 116,680    2.8  %        $ 67,235    4.9  %        $ 230,919    2.3  %
sales
                                                                                                                               
Operating
income:
As reported            $ 1,465        (1.3 )%       $ 6,793         1.4  %        $ 2,721        (2.9 )%       $ 13,249        1.3  %
Currency
exchange rate          (20      )                (20       )                (27      )                (27       )   
fluctuations^1
                       1,445                        6,773                         2,694                        13,222
Operating loss
from                   45                       45                        82                       82           
acquisitions
Constant
currency               $ 1,490     0.4  %        $ 6,818      1.8  %        $ 2,776     (0.9 )%       $ 13,304     1.7  %
operating
income

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

Comparable Sales Measures and Sam's Club Measures

The following financial measures presented in the press release to which this
reconciliation is attached are non-GAAP financial measures as defined by the
SEC's rules:

  *the comparable club sales of the company's Sam's Club operating segment
    ("Sam's Club") for the thirteen-week and twenty-six week periods ended
    Jul. 26, 2013 and Jul. 27, 2012, projected comparable club sales of Sam's
    Club for the thirteen weeks ending Oct. 25, 2013 and comparable club sales
    of Sam's Club for the thirteen weeks ended Oct. 26, 2012, in each case
    calculated by excluding Sam's Club's fuel sales for such periods (the
    "Comparable Sales Measures");
  *the net sales of Sam's Club for the three months ended Jul. 31, 2013 and
    the percentage increase in the net sales of Sam's Club for the three
    months ended Jul. 31, 2013 over the net sales Sam's Club for the three
    months ended Jul. 31, 2012, in each case calculated by excluding Sam's
    Club's fuel sales for the relevant period; and
  *the segment operating income of Sam's Club for the three months and six
    months ended Jul. 31, 2013 and 2012 and the percentage increase in the
    segment operating income of Sam's Club for the three months and six months
    ended Jul. 31, 2013 over the segment operating income of Sam's Club for
    the three months and six months ended Jul. 31, 2012, in each case
    calculated by excluding Sam's Club's fuel sales for the relevant period.

The measures described in the second and third bullet points above are
referred to herein as the "Sam's Club Measures."

We believe the Sam's Club's comparable club sales for the historical periods
for which the corresponding Comparable Sales Measures are presented calculated
by including fuel sales and their effects are the financial measures computed
in accordance with GAAP most directly comparable to the respective Comparable
Sales Measures. We believe the Sam's Club's projected comparable club sales
for the 13 weeks ending Oct. 25, 2013 calculated by including fuel sales and
their effects is the financial measure computed in accordance with GAAP most
directly comparable to the projected comparable club sales of Sam's Club for
the 13 weeks ending Oct. 25, 2013 calculated by excluding fuel sales. We
believe the reported Sam's Club's net sales, percentage increase in net sales,
segment operating income and percentage increase in segment operating income
for the periods for which the corresponding Sam's Club Measures are presented
are the most directly comparable financial measures computed in accordance
with GAAP to the respective Comparable Sales Measures.

We believe that the presentation of the Comparable Sales Measures and the
Sam's Club Measures provides useful information to investors regarding the
company's financial condition and results of operations because that
information permits investors to understand the effect of the fuel sales of
Sam's Club, which are affected by the volatility of fuel prices, on Sam's
Club's comparable club sales and on Sam's Club's net sales and operating
income for the periods presented.

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
 
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