Walmart Corporate: Financial News http://news.walmart.com/rss?feedName=financial Press Releases and Featured Topics News from corporate.walmart.com (c) 2015 Wal-Mart Stores, Inc (c) 2015 Wal-Mart Stores, Inc Walmart U.S. Strategic Update http://es.news.walmart.com/news-archive/2015/03/25/walmart-us-strategic-update BENTONVILLE, Ark., March. 25, 2015 - Walmart U.S. President and CEO Greg Foran will host investors and analysts at the NYSE on Wed., April 1 to discuss his strategic priorities for the business.  Joining Foran will be Judith McKenna, Walmart U.S. Chief Operating Officer and Jeff Davis, Walma... Wed, 25 Mar 2015 18:10:00 GMT http://es.news.walmart.com/news-archive/2015/03/25/walmart-us-strategic-update 2015-03-25T18:10:00Z BENTONVILLE, Ark., March. 25, 2015 – Walmart U.S. President and CEO Greg Foran will host investors and analysts at the NYSE on Wed., April 1 to discuss his strategic priorities for the business.  Joining Foran will be Judith McKenna, Walmart U.S. Chief Operating Officer and Jeff Davis, Walmart U.S. Chief Financial Officer.  Charles Holley, Executive Vice President and Chief Financial Officer, Wal-Mart Stores, Inc. will also attend. 

The session will be informal, with remarks and Q&A, and will be webcast live through links at http://news.walmart.com/events/.  It will begin at 10:00 a.m. EST.  A transcript will be available later in the week.

About Walmart
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, nearly 260 million customers visit our 11,462 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2 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.

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Walmart Will Hold Annual Shareholders Meeting On June 5 http://es.news.walmart.com/news-archive/2015/03/17/walmart-will-hold-annual-shareholders-meeting-on-june-5 BENTONVILLE, Ark., March 17, 2015 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that the company’s 2015 Annual Shareholders Meeting will be held on Fri., June 5, 2015, at 7 a.m. CDT in the Bud Walton Arena at the University of Arkansas in Fayetteville, Ark. The meeting will be webcast on t... Tue, 17 Mar 2015 13:21:00 GMT http://es.news.walmart.com/news-archive/2015/03/17/walmart-will-hold-annual-shareholders-meeting-on-june-5 2015-03-17T13:21:00Z BENTONVILLE, Ark., March 17, 2015 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that the company’s 2015 Annual Shareholders Meeting will be held on Fri., June 5, 2015, at 7 a.m. CDT in the Bud Walton Arena at the University of Arkansas in Fayetteville, Ark. The meeting will be webcast on the company’s website at http://stock.walmart.com.

The company also announced that April 10, 2015, is the record date for that meeting.

About Walmart
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 250 million customers and members visit our 11,453 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of over $485 billion, Walmart employs approximately 2.2 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.

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Wal-Mart Stores, Inc. to participate at the Bank of America 2015 Consumer & Retail Conference http://es.news.walmart.com/news-archive/2015/02/25/wal-mart-stores-inc-to-participate-at-the-bank-of-america-2015-consumer-retail-conference BENTONVILLE, Ark., Feb. 25, 2015 – Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the Bank of America 2015 Consumer & Retail Conference on Wed., March 4. Chief Financial Officer Charles Holley will participate in a fireside chat about the company’s full year results reported on Feb. 19... Wed, 25 Feb 2015 13:54:00 GMT http://es.news.walmart.com/news-archive/2015/02/25/wal-mart-stores-inc-to-participate-at-the-bank-of-america-2015-consumer-retail-conference 2015-02-25T13:54:00Z
The session will be webcast live through links at http://news.walmart.com/events/ and will begin at approximately 12:00 p.m. EDT.  A transcript will be available later in the week, and the materials will be archived on the company’s website.

About Walmart
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 250 million customers and members visit our 11,453 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2 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.

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Walmart announces Q4 underlying EPS of $1.61 and additional strategic investments in people & e-commerce; Walmart U.S. comp sales increased 1.5 percent http://es.news.walmart.com/news-archive/investors/2015/02/19/walmart-announces-q4-underlying-eps-of-161-and-additional-strategic-investments-in-people-e-commerce-walmart-us-comp-sales-increased-15-percent Fourth quarter highlights Underlying1 EPS: Wal-Mart Stores, Inc. (Walmart) reported fourth quarter fiscal year 2015 underlying1 diluted earnings per share from continuing operations (EPS) of $1.61, compared to last year's underlying1 EPS of $1.60. Reported EPS: Reported EPS was $1.53, which ... Thu, 19 Feb 2015 14:33:00 GMT http://es.news.walmart.com/news-archive/investors/2015/02/19/walmart-announces-q4-underlying-eps-of-161-and-additional-strategic-investments-in-people-e-commerce-walmart-us-comp-sales-increased-15-percent 2015-02-19T14:33:00Z
Fourth quarter highlights

  • Underlying1 EPS: Wal-Mart Stores, Inc. (Walmart) reported fourth quarter fiscal year 2015 underlying1 diluted earnings per share from continuing operations (EPS) of $1.61, compared to last year's underlying1 EPS of $1.60.
  • Reported EPS: Reported EPS was $1.53, which includes a negative impact of $0.08 per share from certain discrete items. The company incurred a charge of $0.05 for a wage and hour litigation matter, and a charge of $0.03 for Walmart Japan store closures, both previously disclosed. Last year's EPS was $1.34, which includes a negative impact from discrete items totaling $0.26.
  • Comps: Walmart U.S. comp sales increased 1.5 percent for the 13-week period ended Jan. 30, 2015. Comp sales for the Neighborhood Market format increased approximately 7.7 percent. Sam's Club comp sales, without fuel,1 increased 2.0 percent for the same 13-week period.
  • Revenue: Consolidated revenue reached $131.6 billion, an increase of $1.9 billion, or 1.4 percent. Currency exchange rate fluctuations negatively impacted revenue by approximately $2.6 billion.
Full year fiscal 2015 highlights

  • EPS: Walmart's underlying1 EPS was $5.07, and reported EPS was $4.99, which includes the negative impact of $0.08 from the discrete items noted above.
  • Revenue: Consolidated revenue reached $485.7 billion, an increase of $9.4 billion, or 2.0 percent. Currency exchange rate fluctuations negatively impacted revenue by approximately $5.3 billion. Constant currency revenue was almost $491 billion. E-commerce sales globally rose approximately 22 percent for the year, to $12.2 billion.
  • New store growth: The company added nearly 33 million square feet of retail space in fiscal 2015, with 511 net new units globally.
  • Shareholder returns: The company returned $7.2 billion to shareholders through dividends and share repurchases. [Note: Please see separate Feb. 19, 2015 news release on FY 16 dividend.]
  • Guidance: The company issued full fiscal 2016 EPS guidance range of $4.70 to $5.05, and a first quarter forecast of $0.95 to $1.10. This guidance reflects additional strategic wage and training investments for U.S. associates that were announced today, as well as incremental investments for Global eCommerce initiatives, totaling between $0.26 and $0.29 per share.
1 See additional information at the end of this release regarding non-GAAP financial measures.

BENTONVILLE, Ark.--(BUSINESS WIRE)--Feb. 19, 2015-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the fourth quarter and fiscal year ended Jan. 31, 2015. The company also announced a significant investment in its people and e-commerce businesses for the new fiscal year, along with its annual shareholder dividend.

Fourth quarter
Consolidated net sales for the fourth quarter were $130.7 billion, an increase of 1.4 percent over last year. This quarter included the negative impact of approximately $2.6 billion from currency exchange rate fluctuations. On a constant currency basis,1 net sales increased 3.5 percent to $133.2 billion. Membership and other income decreased 0.5 percent. Total revenue was $131.6 billion, an increase of approximately $1.9 billion, or 1.4 percent.

Consolidated net income attributable to Walmart was $5.0 billion, a 12.1 percent increase. Diluted earnings per share from continuing operations attributable to Walmart were $1.53, compared to last year's $1.34. Underlying1 diluted earnings per share from continuing operations attributable to Walmart were $1.61, compared to $1.60 last year.

Fiscal year 2015
Consolidated net sales for the year were $482.2 billion, an increase of 1.9 percent over fiscal year 2014. Net sales included approximately $5.3 billion of negative impact from currency exchange rate fluctuations. Membership and other income increased 6.3 percent. Total revenue was $485.7 billion, an increase of approximately $9.4 billion, or 2.0 percent. Constant currency revenue was almost $491 billion.

Consolidated net income attributable to Walmart was $16.4 billion, up 2.1 percent. Diluted earnings per share from continuing operations attributable to Walmart were $4.99, or 2.9 percent above last year's $4.85. Underlying1 diluted earnings per share from continuing operations attributable to Walmart were $5.07, compared to $5.11 last year.

The EPS impact of certain discrete items on the company's reported fourth quarter and fiscal year results from continuing operations was $0.08 per share. The discrete items, both of which were previously disclosed, and the respective EPS impact was as follows:

 


Wage and hour litigation matter $0.05


Closure of approximately 30 underperforming stores in Japan $0.03
 
Last year, the total EPS impact of discrete items on the company's reported fourth quarter and full year results from continuing operations was $0.26 per share. [Note: Details provided in press release issued Feb. 20, 2014.]

Investing for FY 2016
"We had a good fourth quarter to close out our fiscal year, with underlying EPS of $1.61. Walmart U.S. delivered better than expected comp sales. Sam's Club had its best performance of the year, and Walmart International had solid sales and profitability," said Doug McMillon, Wal-Mart Stores, Inc. president and CEO. "Like many other global companies, we faced significant headwinds from currency exchange rate fluctuations, so I'm pleased that we delivered fiscal year revenue of $486 billion. But, we're not satisfied."

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

According to McMillon, the leadership teams are very focused on improving customer experiences through various investments and program initiatives, and for several months, developed and tested new ideas to reward associates for serving customers.

"We have work to do to grow the business. We know what customers want from a shopping experience, and we're investing strategically to exceed their expectations and better position Walmart for the future," said McMillon. "Our first priority is to run great stores and clubs. We will continue to integrate our physical locations with a great e-commerce and mobile commerce business. We're strengthening investments in our people to engage and inspire them to deliver superior customer experiences. We will earn the trust of all Walmart stakeholders by operating great retail businesses, ensuring world-class compliance, and doing good in the world through social and environmental programs in our communities."

McMillon announced a bold new initiative on pay and training for U.S. associates. Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam's Clubs will receive pay raises in the first half of the current fiscal year. Current and future associates will benefit from this initiative, which ensures that Walmart hourly associates earn at least $1.75 above today's federal minimum wage, or $9.00 per hour, in April. The following year, by Feb. 1, 2016, current associates will earn at least $10.00 per hour.

"Today, we announced comprehensive changes to our hiring, training, compensation and scheduling programs, as well as to our store management structure. These changes will give our U.S. associates the opportunity to earn higher pay and advance in their careers. We're pursuing a comprehensive approach that is sustainable over the long term," explained McMillon. "By realigning our store operational structure, associates can enjoy a closer relationship with their supervisors. In addition, associates will have more control over their schedules. The investment in these initiatives is more than $1 billion for this fiscal year."

Walmart associates already have the opportunity for competitive health-care and 401(k) benefits, sick leave, and access to bonus incentive opportunities, discounts and educational programs. These benefits and programs will continue to be available to current and future associates.

"Sam Walton knew that an inspired, dedicated team of associates was the way to exceed our customers' expectations," said McMillon. "He often said 'Our people make the difference.' I feel a big responsibility to carry on what that phrase represents: the care and commitment that Sam had for Walmart associates."

As part of today's announcement, Walmart and the Walmart Foundation also committed $100 million over five years to help increase the economic mobility for entry level workers by advancing their careers. This initiative will benefit the retail and service industries. The Walmart Foundation will work with other foundations, employers, community colleges and non-profit organizations to address a fundamental challenge in America -- how to better train and advance workers in the retail and adjacent sectors. Today, more than 15 million people, including 7 million women, work in retail.

"Beyond this commitment, Walmart is also piloting a new, comprehensive on-boarding and training program to create clear career pathways for associates, so they can earn more and seek promotions," McMillon explained. "We're encouraging our associates to continue their education by providing no-cost access for them to complete their high school diploma or GED, as well as free and low-cost college credit to reduce the time and cost of earning a college degree. The skills and training that an associate receives through this program will be transferable outside of Walmart."

"Walmart has represented a ladder of opportunity since Sam started the business, and we want to make sure that's the case going forward everywhere we operate, including here in the United States," added McMillon. "Globally, we have ongoing efforts in place to review our associates' compensation on a yearly basis in each of our markets. We're also proud of the growth opportunities we provide our associates around the world through training and career advancement programs."

Guidance
The company provided guidance for EPS and updated its estimate for fiscal year 2016 sales growth.

"Given the investments we're making in our worldwide e-commerce initiatives and in our associates through higher wages and training, we expect operating income to be pressured in fiscal 2016," said Charles Holley, Wal-Mart Stores, Inc. chief financial officer. "We will invest approximately $0.02 per share in the first quarter and approximately $0.20 per share for the full year in the new wage structure, comprehensive associate training and educational programs. Our incremental investment in global e-commerce initiatives will range between $0.06 and $0.09 per share this year. Together, we're investing between $0.26 and $0.29 per share for these initiatives in fiscal year 2016.

"Along with these significant investments, we expect ongoing headwinds from currency exchange rates during the year. We also consider economic conditions in our various markets and our estimated tax rate in establishing our guidance ranges for the year," added Holley. "After evaluating these factors, we are forecasting earnings per share for the full year of fiscal 2016 to range between $4.70 and $5.05. For the first quarter, EPS will range from $0.95 to $1.10."

This guidance compares to $1.10 per share Walmart reported for the first quarter of fiscal 2015 and $4.99 per share for the full year. In addition, Holley said that if currency exchange rates remain where they are today, this would cause a negative impact to fiscal year 2016 net sales of approximately $10 billion, as well as a negative impact on operating income of around $0.10 per share.

"Given the potential impact of currency headwinds, we expect that our fiscal year 2016 sales growth will be between 1 and 2 percent, versus the 2 to 4 percent we provided at our October investor conference," said Holley. "Our capital expenditure guidance of $11.6 billion to $12.9 billion, which includes investments for stores and e-commerce, remains unchanged. Our net square footage store growth target, excluding future acquisitions, remains unchanged at 26 to 30 million square feet for this year."

Returns
The company paid $6.2 billion in dividends and repurchased approximately 13.4 million shares for $1.0 billion during the year. In total, the company returned $7.2 billion to shareholders through dividends and share repurchases.

Return on investment1 (ROI) for the trailing 12-months ended Jan. 31, 2015 was 16.9 percent, which was relatively flat compared to ROI for the fiscal year ended Jan. 31, 2014. The slight change in ROI was primarily due to continued investments in store growth and e-commerce initiatives, offset by currency exchange rate fluctuations.

Free cash flow1 was $16.4 billion for the 12-months ended Jan. 31, 2015, compared to $10.1 billion in the prior year. The increase in free cash flow was primarily due to the timing of payments for accounts payable and accrued liabilities, as well as the timing of income tax payments, combined with lower capital expenditures.

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

U.S. comparable store sales results
The company reported U.S. comparable store sales based on its 13-week and 52-week retail calendar for the period ended Jan. 30, 2015 and its 14-week and 53-week retail calendar for the period ended Jan. 31, 2014 as follows:

     
Without Fuel With Fuel Fuel Impact
13 Weeks Ended* 13 Weeks Ended* 13 Weeks Ended*
1/30/2015     1/31/2014   1/30/2015     1/31/2014   1/30/2015     1/31/2014  
Walmart U.S. 1.5 %   -0.4 % 1.5 %   -0.4 % 0.0 %   0.0 %
Sam's Club 2.0 %   -0.1 % -0.4 %   -0.1 % -2.4 %   0.0 %
Total U.S. 1.6 %   -0.4 % 1.2 %   -0.4 % -0.4 %   0.0 %
 
     
Without Fuel With Fuel Fuel Impact
52 Weeks Ended* 52 Weeks Ended* 52 Weeks Ended*
1/30/2015   1/31/2014 1/30/2015   1/31/2014 1/30/2015   1/31/2014
Walmart U.S. 0.5%   -0.6% 0.5%   -0.6% 0.0%   0.0%
Sam's Club 0.5%   0.7% -0.1%   0.4% -0.6%   -0.3%
Total U.S. 0.5%   -0.4% 0.4%   -0.4% -0.1%   0.0%
 
*The retail sales calendar for the year ended January 31, 2014 included 53 weeks. As such, fiscal year 2014 comparable store sales presented above are for the 14 weeks and 53 weeks ended January 31, 2014.

During the 13-week period, Walmart U.S. comp traffic rose 1.4 percent, while average ticket increased 0.1 percent.

Excluding fuel,1 for the 13-week period, Sam's Club comp traffic was up 1.5 percent, and average ticket increased 0.5 percent.

The company's e-commerce sales impact includes those sales initiated through the company's websites and fulfilled through the company's dedicated e-commerce distribution facilities, as well as an estimate for sales initiated online, but fulfilled through the company's stores and clubs. For the 13-week period, e-commerce sales positively impacted comp sales in Walmart U.S. by approximately 30 basis points, and positively impacted Sam's Club comp sales by approximately 40 basis points.

"Our fourth quarter was the first positive traffic comp we've had since the third quarter of fiscal year 2013," said Greg Foran, Walmart U.S. president and CEO. "Walmart U.S. had increased traffic during the six-week holiday season, with strong sales in seasonal, toys, home and apparel. We completed almost 1 billion total transactions during the holiday season, including our largest online day ever on Cyber Monday. We are also pleased to deliver positive comp sales for the full year."

Foran also noted the strong comp sales of Neighborhood Market stores.

"Neighborhood Markets delivered approximately a 7.7 percent comp during the quarter," he said. "We opened 233 Neighborhood Markets during the year, and customers like their easy and convenient access to fresh foods, pharmacy and services."

"Throughout the year, we've seen meaningful acceleration culminating in comp sales, without fuel, of 2.0 percent for the 13-week period," said Rosalind Brewer, Sam's Club president and CEO. "Strong holiday execution, combined with our strategic investments in member value, merchandise relevance and the integration of digital and physical boosted our performance."

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

Net sales results
Net sales, including fuel, were as follows:

    Three Months Ended       Fiscal Years Ended
January 31, January 31,
(dollars in billions) 2015       2014     Percent Change 2015       2014       Percent Change
Walmart U.S. $ 79.571   $ 76.433   4.1 % $ 288.049   $ 279.406   3.1 %
Walmart International 36.205 37.674 -3.9 % 136.160 136.513 -0.3 %
Sam's Club 14.874   14.679   1.3 % 58.020   57.157   1.5 %
Consolidated $ 130.650   $ 128.786   1.4 % $ 482.229   $ 473.076   1.9 %
The following explanations provide additional context to the above table for the fiscal year.

  • On a constant currency basis,1 Walmart International's net sales for the year were $141.4 billion, an increase of 3.6 percent over last year. Currency exchange rate fluctuations negatively impacted net sales by $5.3 billion.
  • Sam's Club net sales, excluding fuel,1 were $51.6 billion, an increase of 2.1 percent over last year.
  • On a constant currency basis,1 consolidated net sales increased 3.0 percent to $487.5 billion.
"I'm pleased with our International performance, as we've remained committed to our strategic priorities," said David Cheesewright, Walmart International president and CEO. "We've produced solid sales and operating income growth, despite operating in a challenging, competitive retail environment and with significant currency headwinds. Our teams continue to drive innovation in e-commerce by expanding our online presence and offering multiple ways for our customers to shop."

E-commerce sales globally rose approximately 22 percent for the year, outpacing the market.

"Our investments started to enhance our customer experience during the fourth quarter across digital and physical, and we saw good sales in markets around the world. We made great progress on our priorities, including our global technology platform, next generation fulfillment network and the integration of digital and physical," said Neil Ashe, Global eCommerce president and CEO. "We have significant opportunities to grow, as our core capabilities continue rolling out to customers around the world, and we further expand mobile offerings and our fulfillment centers. Fiscal year 2016 will continue to be a building year, and we expect sales to grow globally in the mid 20s."

Segment operating income
Segment operating income was as follows:

      Three Months Ended       Fiscal Years Ended
January 31, January 31,
(dollars in billions) 2015       2014   Percent Change 2015       2014       Percent Change
Walmart U.S. $ 6.177   $ 6.216   -0.6 % $ 21.336   $ 21.787   -2.1 %
Walmart International 2.050 1.232 66.4 % 6.171 5.153 19.8 %
Sam's Club 0.510   0.395   29.1 % 1.976   1.843   7.2 %
Sam's Club (excluding fuel) 0.456   0.382   19.4 % 1.854   1.817   2.0 %
1 See additional information at the end of this release regarding non-GAAP financial measures.

For the year, Walmart U.S. operating income was impacted primarily by increased health-care costs from higher enrollment rates and medical cost inflation.

Last year's operating income for Walmart International was impacted by a number of discrete charges. The result is that year-over-year comparisons show improvement. Excluding these items from last year, Walmart International grew operating income on a reported and on a constant currency basis.

U.S. comparable store sales review and guidance
For the 13-week period ending May 1, 2015, Walmart U.S. expects comp store sales to increase between 1 and 2 percent. Last year, Walmart's comp sales were relatively flat for the 13-week period ended May 2, 2014.

Sam's Club expects comp sales, excluding fuel,1 for the 13-week period ending May 1, 2015 to rise between 1 and 2 percent. Last year, comp sales, excluding fuel,1 decreased 0.5 percent for the 13-week period ended May 2, 2014.

Walmart U.S. and Sam's Club will report comparable sales for the 13-week period ending May 1, 2015 on May 19, when the company reports first quarter results.

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 250 million customers and members visit our 11,453 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2 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.

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 and the full year will be available to all investors. Information included in this release, including reconciliations, and the pre-recorded phone call and related information can be accessed via webcast by visiting the investor information area on the company's website at www.stock.walmart.com. Callers within the U.S. and Canada may dial 877-523-5612 and enter pass code 9256278. All other callers can access the call by dialing 201-689-8483 and entering pass code 9256278.

Note to media
More information on Walmart's associate pay structure and training announcement for its U.S. associates, including a blog and video from Walmart CEO Doug McMillon, letter to associates and infographics, is available at blog.walmart.com. High resolution photos of stores and customers, along with an infographic of financial highlights, are available for download at 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 Walmart management's guidance regarding: (1) Walmart's diluted earnings per share from continuing operations attributable to Walmart for the fiscal year ending Jan. 31, 2016 and the three months ending Apr. 30, 2015; (2) the range of the per share amount of investment Walmart will make in its additional strategic wage structure and training investments for U.S. associates in the first quarter of, and for all of, the fiscal year ending Jan. 31, 2016 and the aggregate amount of that investment in the fiscal year ending Jan. 31, 2016; (3) the range of the per share amount of the incremental investment Walmart will make in e-commerce in the fiscal year ending Jan. 31, 2016; (4) the range of the total of the investment per share to be made in Walmart's additional strategic wage structure and training investments for U.S. associates in the fiscal year ending Jan. 31, 2016 and the incremental investment Walmart will make in e-commerce in the fiscal year ending Jan. 31, 2016; (5) the comparable store sales of the Walmart U.S. segment and the comparable club sales, excluding fuel, of the Sam's Club segment for the 13-week period ending May 1, 2015; (6) the growth in consolidated net sales and the possible negative impact of currency exchange rates on consolidated net sales for the fiscal year ending Jan. 31, 2016; (7) the expected global growth in e-commerce sales in the fiscal year ending Jan. 31, 2016; and (8) the range of aggregate capital expenditures and the range of growth in square footage for the fiscal year ended Jan. 31, 2015, as well as management's expectations that Walmart's operating income will be pressured in the fiscal year ending Jan. 31, 2016 and that Walmart will continue to integrate Walmart's physical locations with its e-commerce and mobile commerce business (and assumptions underlying certain of such guidance and expectations), that Walmart 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 and can be identified by the use of the word or phrase "expect," "expects," "forecasting," "growth target," "guidance," "will invest," "will continue," "will range" or "would cause" in or relating to such statements. Walmart's actual results may differ materially from the guidance provided and the expected results discussed in such forward-looking statements as a result of changes in facts, assumptions not being realized or other risks, uncertainties and factors, including:

  • economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates, including unemployment and underemployment levels;
  • competitive initiatives of other retailers and other competitive pressures;
  • inflation or deflation, generally and in particular product categories;
  • consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise;
  • customer traffic and average ticket in Walmart's stores and clubs and on its e-commerce websites;
  • the mix of merchandise Walmart sells;
  • availability of attractive opportunities for investment in e-commerce acquisitions and initiatives;
  • consumer acceptance of Walmart's stores and clubs, e-commerce websites, mobile apps, initiatives, programs and merchandise offerings;
  • disruption of and changes in seasonal buying patterns in Walmart's markets;
  • changes in the level of public assistance payments;
  • effects of weather conditions and events, catastrophes, natural disasters, public health emergencies, civil disturbances, and terrorist attacks;
  • commodity prices and the cost of goods Walmart sells;
  • transportation, energy and utility costs;
  • selling prices of gasoline and diesel fuel;
  • disruption of Walmart's supply chain, including disruption of the transport of goods from foreign suppliers to Walmart’s facilities;
  • information security events and information security-related costs;
  • trade restrictions, changes in tariff and freight rates;
  • the size and turnover of Walmart’s hourly workforce in the U.S.;
  • labor costs, including healthcare and other benefit costs;
  • casualty and accident-related costs and insurance costs;
  • the availability and cost of appropriate locations for new and relocated stores, clubs and other facilities;
  • local real estate, zoning, land use and other laws, ordinances, legal restrictions and initiatives that impose limitations on Walmart's ability to build, relocate or expand stores in certain locations;
  • delays in construction or opening of new, expanded or relocated units;
  • the availability of persons with the necessary skills and abilities necessary to meet the company's needs for managing and staffing new units and conducting their operations and to meet seasonal associate hiring needs;
  • the availability of necessary utilities for new units;
  • the availability of skilled labor in areas in which new units are to be constructed or existing units are to be relocated, expanded or remodeled;
  • changes in tax and other laws, including changes in individual or corporate tax rates and labor laws;
  • developments in, outcomes of, and costs incurred in legal proceedings to which Walmart is a party;
  • Walmart’s expenditures for FCPA- and compliance-related matters;
  • currency exchange rate fluctuations and changes in market interest rates;
  • the amount of Walmart's net sales denominated in particular currencies other than the U.S. dollar;
  • Walmart's effective tax rate and factors affecting that rate; and
  • changes in generally accepted accounting principles and unanticipated changes in accounting estimates or judgments.
Walmart discusses certain of the foregoing factors more fully and other risks relating to its operations and financial performance in its most recent annual report on Form 10-K filed with the SEC and certain of its other filings with the SEC. You should read this release in conjunction with that annual report on Form 10-K and Walmart’s quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC through this release's date. Walmart urges you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecast or expected consequences and effects for or on Walmart's operations or financial performance. The forward-looking statements contained in this release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 
Wal-Mart Stores, Inc. Consolidated Statements of Income

(Unaudited)

                           
 
 
Quarters Ended Fiscal Years Ended
SUBJECT TO RECLASSIFICATION January 31,   January 31,    
(Dollars in millions, except share data)   2015     2014   Percent Change   2015     2014   Percent Change
Revenues:
Net sales $ 130,650 $ 128,786 1.4 % $ 482,229 $ 473,076 1.9 %
Membership and other income   915     920   (0.5 )%   3,422     3,218   6.3 %
Total revenues 131,565 129,706 1.4 % 485,651 476,294 2.0 %
Costs and expenses:
Cost of sales 99,115 97,971 1.2 % 365,086 358,069 2.0 %
Operating, selling, general and administrative expenses   24,501     24,388   0.5 %   93,418     91,353   2.3 %
Operating income 7,949 7,347 8.2 % 27,147 26,872 1.0 %
Interest:
Debt 560 516 8.5 % 2,161 2,072 4.3 %
Capital leases 63 65 (3.1 )% 300 263 14.1 %
Interest income   (37 )   (27 ) 37.0 %   (113 )   (119 ) (5.0 )%
Interest, net   586     554   5.8 %   2,348     2,216   6.0 %
Income from continuing operations before income taxes

7,363 6,793 8.4 % 24,799 24,656 0.6 %
Provision for income taxes

  2,175     2,249   (3.3 )%   7,985     8,105   (1.5 )%
Income from continuing operations 5,188 4,544 14.2 % 16,814 16,551 1.6 %
Income from discontinued operations, net of income taxes       106   -100.0 %   285     144   97.9 %
Consolidated net income 5,188 4,650 11.6 % 17,099 16,695 2.4 %
Less consolidated net income attributable to noncontrolling interest   (222 )   (219 ) 1.4 %   (736 )   (673 ) 9.4 %
Consolidated net income attributable to Walmart $ 4,966   $ 4,431   12.1 % $ 16,363   $ 16,022   2.1 %
 
Income from continuing operations attributable to Walmart:
Income from continuing operations $ 5,188 $ 4,544 14.2 % $ 16,814 $ 16,551 1.6 %
Less income from continuing operations attributable to noncontrolling interest   (222 )   (190 ) 16.8 %   (632 )   (633 ) (0.2 )%
Income from continuing operations attributable to Walmart $ 4,966   $ 4,354   14.1 % $ 16,182   $ 15,918   1.7 %
 
 
Basic net income per common share:
Basic income per common share from continuing operations attributable to Walmart $ 1.54 $ 1.35 14.1 % $ 5.01 $ 4.87 2.9 %
Basic income per common share from discontinued operations attributable to Walmart       0.02   -100.0 %   0.06     0.03   100.0 %
Basic net income per common share attributable to Walmart $ 1.54   $ 1.37   12.4 % $ 5.07   $ 4.90   3.5 %
 
Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart $ 1.53 $ 1.34 14.2 % $ 4.99 $ 4.85 2.9 %
Diluted income per common share from discontinued operations attributable to Walmart       0.02   (100.0 )%   0.06     0.03   100.0 %
Diluted net income per common share attributable to Walmart $ 1.53   $ 1.36   12.5 % $ 5.05   $ 4.88   3.5 %
 
Weighted-average common shares outstanding:
Basic 3,230 3,240 3,230 3,269
Diluted 3,242 3,254 3,243 3,283
 
 
Dividends declared per common share $ 1.92 $ 1.88
 
Wal-Mart Stores, Inc. Consolidated Balance Sheets

(Unaudited)

   
 
SUBJECT TO RECLASSIFICATION
(Dollars in millions) January 31, January 31,
ASSETS   2015     2014  
Current assets:
Cash and cash equivalents $ 9,135 $ 7,281
Receivables, net 6,778 6,677
Inventories 45,141 44,858
Prepaid expenses and other 2,224 1,909
Current assets of discontinued operations       460  
Total current assets 63,278 61,185
Property and equipment:
Property and equipment 177,395 173,089
Less accumulated depreciation   (63,115 )   (57,725 )
Property and equipment, net 114,280 115,364
Property under capital leases:
Property under capital leases 5,239 5,589
Less accumulated amortization   (2,864 )   (3,046 )
Property under capital leases, net 2,375 2,543
 
Goodwill 18,102 19,510
Other assets and deferred charges   5,671     6,149  
Total assets $ 203,706   $ 204,751  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings $ 1,592 $ 7,670
Accounts payable 38,410 37,415
Accrued liabilities 19,152 18,793
Accrued income taxes 1,021 966
Long-term debt due within one year 4,810 4,103
Obligations under capital leases due within one year 287 309
Current liabilities of discontinued operations       89  
Total current liabilities 65,272 69,345
 
Long-term debt 41,086 41,771
Long-term obligations under capital leases 2,606 2,788
Deferred income taxes and other 8,805 8,017
Redeemable noncontrolling interest 1,491
 
Commitments and contingencies
 
Equity:
Common stock 323 323
Capital in excess of par value 2,462 2,362
Retained earnings 85,777 76,566
Accumulated other comprehensive income (loss)   (7,168 )   (2,996 )
Total Walmart shareholders’ equity 81,394 76,255
Nonredeemable noncontrolling interest   4,543     5,084  
Total equity   85,937     81,339  
Total liabilities and equity $ 203,706   $ 204,751  
 
   
Wal-Mart Stores, Inc. Consolidated Statements of Cash Flows

(Unaudited)

 
 
Fiscal Years Ended
SUBJECT TO RECLASSIFICATION January 31,
(Dollars in millions)   2015     2014  
Cash flows from operating activities:
Consolidated net income $ 17,099 $ 16,695
(Income) loss from discontinued operations, net of income taxes   (285 )   (144 )
Income from continuing operations 16,814 16,551
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 9,173 8,870
Deferred income taxes (503 ) (279 )
Other operating activities 785 938
Changes in certain assets and liabilities:
Receivables, net (569 ) (566 )
Inventories (1,229 ) (1,667 )
Accounts payable 2,678 531
Accrued liabilities 1,249 103
Accrued income taxes   166     (1,224 )
Net cash provided by operating activities 28,564 23,257
 
Cash flows from investing activities:
Payments for property and equipment (12,174 ) (13,115 )
Proceeds from the disposal of property and equipment 570 727
Proceeds from disposal of certain operations 671
Other investing activities   (192 )   (138 )
Net cash used in investing activities (11,125 ) (12,526 )
 
Cash flows from financing activities:
Net change in short-term borrowings (6,288 ) 911
Proceeds from issuance of long-term debt 5,174 7,072
Payments of long-term debt (3,904 ) (4,968 )
Dividends paid (6,185 ) (6,139 )
Purchase of Company stock (1,015 ) (6,683 )
Dividends paid to noncontrolling interest (600 ) (426 )
Purchase of noncontrolling interest (1,844 ) (296 )
Other financing activities   (409 )   (260 )
Net cash used in financing activities (15,071 ) (10,789 )
 
Effect of exchange rates on cash and cash equivalents   (514 )   (442 )
 
Net increase (decrease) in cash and cash equivalents 1,854 (500 )
Cash and cash equivalents at beginning of year   7,281     7,781  
Cash and cash equivalents at end of year $ 9,135   $ 7,281  
 
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 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 possible short-term impacts.

ROI was 16.9 percent for the fiscal year ended Jan. 31, 2015, which was relatively flat compared to ROI for the fiscal year ended Jan. 31, 2014. The slight change in ROI was primarily due to continued investments in store growth and e-commerce initiatives, offset by currency exchange rate fluctuations.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months 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 average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period, plus a rent factor equal to the rent for the fiscal year or trailing 12 months multiplied by a factor of 8. When we have discontinued operations, we exclude the impact of the discontinued operations.

Our calculation of ROI is considered a non-GAAP financial measure 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. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. In addition, we include a factor of 8 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 generally accepted accounting principles (GAAP) that is the most directly comparable financial measure to our calculation of ROI. ROI differs from ROA (which is consolidated income from continuing operations for the period divided by average total assets of continuing operations for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets of continuing operations 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 management to calculate our ROI may differ from the methods used by other companies 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
Fiscal Years Ended
January 31,
(Dollars in millions)   2015     2014  
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 27,147 $ 26,872
+ Interest income 113 119
+ Depreciation and amortization 9,173 8,870
+ Rent   2,777     2,828  
Adjusted operating income $ 39,210   $ 38,689  
 
Denominator
Average total assets of continuing operations1 $ 203,999 $ 203,680
+ Average accumulated depreciation and amortization1 63,375 57,907
- Average accounts payable1 37,913 37,748
- Average accrued liabilities1 18,973 18,802
+ Rent x 8   22,216     22,624  
Average invested capital $ 232,704   $ 227,661  
Return on investment (ROI)   16.9 %   17.0 %
 
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 16,814   $ 16,551  
Denominator
Average total assets of continuing operations1 $ 203,999   $ 203,680  
Return on assets (ROA)   8.2 %   8.1 %
 
As of January 31,
Certain Balance Sheet Data   2015   2014     2013  
Total assets of continuing operations $ 203,706 $ 204,291 $ 203,068
Accumulated depreciation and amortization 65,979 60,771 55,043
Accounts payable 38,410 37,415 38,080
Accrued liabilities 19,152 18,793 18,808
 
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 $16.4 billion and $10.1 billion for the fiscal years ended Jan. 31, 2015 and 2014, respectively. The increase in free cash flow was primarily due to the timing of payments for accounts payable and accrued liabilities, as well as the timing of income tax payments, combined with lower capital expenditures.

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 income from continuing operations 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 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 Walmart's management to calculate our free cash flow may differ from the methods used by other companies 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.

 
Fiscal Years Ended
January 31,
(Dollars in millions) 2015     2014  
Net cash provided by operating activities $ 28,564 $ 23,257
Payments for property and equipment (12,174 ) (13,115 )
Free cash flow $ 16,390   $ 10,142  
 
Net cash used in investing activities1 $ (11,125 ) $ (12,526 )
Net cash used in financing activities $ (15,071 ) $ (10,789 )
 
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, if any, 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 total revenues, net sales and operating income for the three months and fiscal year ended Jan. 31, 2015.

     
Three Months Ended January 31, 2015 Fiscal Year Ended January 31, 2015
Walmart International     Consolidated Walmart International     Consolidated
(Dollars in millions) 2015     Percent Change 2015   Percent Change 2015     Percent Change 2015     Percent Change
Total revenues:        
As reported $ 36,537 (3.8 )% $ 131,565 1.4 % $ 137,424 (0.1 )% $ 485,651 2.0 %
Currency exchange rate fluctuations1 2,626       2,626       5,323       5,323      
39,163 134,191 142,747 490,974
Total revenues from acquisitions                        
Constant currency total revenues $ 39,163   3.1 %   $ 134,191   3.5 %   $ 142,747   3.7 %   $ 490,974   3.1 %
 
Net sales:
As reported $ 36,205 (3.9 )% $ 130,650 1.4 % $ 136,160 (0.3 )% $ 482,229 1.9 %
Currency exchange rate fluctuations1 2,599       2,599       5,267       5,267      
38,804 133,249 141,427 487,496
Net sales from acquisitions                        
Constant currency net sales $ 38,804   3.0 %   $ 133,249   3.5 %   $ 141,427   3.6 %   $ 487,496   3.0 %
 
Operating income:
As reported $ 2,050 66.4 % $ 7,949 8.2 % $ 6,171 19.8 % $ 27,147 1.0 %
Currency exchange rate fluctuations1 163       163       225       225      
2,213 8,112 6,396 27,372
Operating income (loss) from acquisitions                        
Constant currency operating income $ 2,213   79.6 %   $ 8,112   10.4 %   $ 6,396   24.1 %   $ 27,372   1.9 %
 
1 Excludes currency exchange rate fluctuations related to acquisitions until the acquisitions are included in both comparable periods.

 
Underlying EPS

The underlying diluted earnings per share from continuing operations attributable to Walmart (Underlying EPS) for each of the three-month periods and fiscal years ended Jan. 31, 2015 and 2014 is considered a non-GAAP financial measure under the SEC's rules because the Underlying EPS for each such period includes certain amounts not included in the diluted earnings per share from continuing operations attributable to Walmart calculated in accordance with GAAP (EPS) for each of the three-month periods and fiscal years ended Jan. 31, 2015 and 2014. Management believes that the Underlying EPS for each of the three-month periods and fiscal years ended Jan. 31, 2015 and 2014 is a meaningful metric to share with investors because that metric, which adjusts EPS for such period for certain items recorded in such period, is the metric that best allows comparison of the performance for the comparable period. In addition, the metric affords investors a view of what management considers Walmart's core earnings performance for each of the three-month periods and fiscal years ended Jan. 31, 2015 and 2014 and also affords investors the ability to make a more informed assessment of such core earnings performance for the comparable period.

We have calculated the Underlying EPS for the three months and the fiscal year ended Jan. 31, 2015 by adjusting the EPS for each period for the amount of the dilutive impact of: (1) the effect of the wage and hour litigation matter (Wage and Hour Litigation Matter) and (2) the closure of approximately 30 underperforming stores in Japan (Japan Store Closures).

Underlying EPS for each of the three months and the fiscal year ended Jan. 31, 2015 is a non-GAAP financial measure. The most directly comparable financial measure calculated in accordance with GAAP is EPS for the three months and the fiscal year ended Jan. 31, 2015, respectively.

 
Underlying EPS - Fiscal 2015
        Three Months Ended
January 31, 2015

      Fiscal Year Ended
January 31, 2015

Diluted net income per common share:
 
Underlying EPS $ 1.61 $ 5.07
Adjustments to Underlying EPS
 
Wage and Hour Litigation Matter (0.05 ) (0.05 )
Japan Store Closures (0.03 ) (0.03 )
 
EPS $ 1.53 $ 4.99
 
As previously disclosed in our fiscal year ended Jan. 31, 2014 press release, we have calculated the Underlying EPS for the three months and the fiscal year ended Jan. 31, 2014 by adjusting the EPS for each period for the amount of the dilutive impact of: (1) Brazil non-income tax contingencies (Brazil Taxes); (2) Brazil employment claim contingencies (Brazil Employment Matters); (3) the closure of 54 underperforming Brazil and China stores (Store Closures); (4) China store lease expense charges (Lease Matters); (5) the India transaction (India Transaction); and (6) Sam's Club U.S. staff restructuring and club closure (Sam's Restructuring).

Underlying EPS for the three months and the fiscal year ended Jan. 31, 2014 is a non-GAAP financial measure. The most directly comparable financial measure calculated in accordance with GAAP is EPS for the three months and the fiscal year ended Jan. 31, 2014.

 
Underlying EPS - Fiscal 2014
      Three Months Ended
January 31, 2014

      Fiscal Year Ended
January 31, 2014

Diluted net income per common share:
 
Underlying EPS $ 1.60 $ 5.11
Adjustments to Underlying EPS
 
Brazil Taxes (0.06 ) (0.06 )
Brazil Employment Matters (0.05 ) (0.05 )
Store Closures (0.06 ) (0.06 )
Lease Matters (0.03 ) (0.03 )
India Transaction (0.05 ) (0.05 )
Sam's Restructuring (0.01 ) (0.01 )
 
EPS $ 1.34 $ 4.85
 
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 13-week and 52-week period ended Jan. 30, 2015 and the 14-week and 53 week period ended Jan. 31, 2014, the projected comparable club sales of Sam's Club for the 13 weeks ending May 1, 2015 and the comparable club sales of Sam's Club for the 13 weeks ended May 2, 2014, in each case calculated by excluding Sam's Club's fuel sales for such periods (the "Sam's Club Comparable Sales Measures");
  • the net sales of Sam's Club for the fiscal year ended Jan. 31, 2015 and the percentage increase in the net sales of Sam's Club for the fiscal year ended Jan. 31, 2015 over the net sales of Sam's Club for the fiscal year ended Jan. 31, 2014 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 month periods and fiscal years Jan. 31, 2015 and 2014, the percentage increase in the segment operating income of Sam's Club for the three months or fiscal year Jan. 31, 2015 over the segment operating income of Sam's Club for the three months or fiscal year Jan. 31, 2014, in each case calculated by excluding Sam's Club's fuel sales for the relevant period (collectively with the financial measures described in the immediately preceding bullet point, the "Sam's Club Measures").
We believe the Sam's Club comparable club sales for the historical periods for which the corresponding Sam's Club Comparable Sales Measures are presented calculated by including fuel sales are the financial measures computed in accordance with GAAP most directly comparable to the respective Sam's Club Comparable Sales Measures. We believe Sam's Club's projected comparable club sales for the 13-week period ending May 1, 2015 calculated by including fuel sales 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-week period ending May 1, 2015 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 Sam’s Club Measures.

We believe that the presentation of the Sam's Club 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.





Source: Wal-Mart Stores, Inc.

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)
Pass code: 9256278 (Walmart)




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Walmart raises annual dividend to $1.96 per share, representing the 42nd consecutive year of dividend increases http://es.news.walmart.com/news-archive/2015/02/19/walmart-raises-annual-dividend-to-196-per-share-representing-the-42nd-consecutive-year-of-dividend-increases BENTONVILLE, Ark., February 19, 2015 - The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2016 of $1.96 per share, an increase of two percent from the $1.92 per share paid for the last fiscal year. The fiscal year 2016 annual dividend of $... Thu, 19 Feb 2015 14:14:00 GMT http://es.news.walmart.com/news-archive/2015/02/19/walmart-raises-annual-dividend-to-196-per-share-representing-the-42nd-consecutive-year-of-dividend-increases 2015-02-19T14:14:00Z BENTONVILLE, Ark., February 19, 2015 – The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2016 of $1.96 per share, an increase of two percent from the $1.92 per share paid for the last fiscal year. The fiscal year 2016 annual dividend of $1.96 per share will be paid in four quarterly installments of $0.49 per share, according to the following record and payable dates:


Record Dates
Payable Dates
March 13, 2015
April 6, 2015
May 8, 2015
June 1, 2015
August 7, 2015
September 8, 2015
December 4, 2015
January 4, 2016

"We are proud of our history of consistent shareholder returns.  This will mark 42 consecutive years of increasing dividends for our shareholders," said Charles Holley, executive vice president and chief financial officer.  "The strength of our balance sheet and strong free cash flow continues to enable a dividend increase, even as we invest more to strategically position Walmart to better serve our customers."   

About Walmart
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 250 million customers and members visit our 11,453 stores under 71 banners in 27 countries and e-commerce websites in 11 countries.  With fiscal year 2015 revenues of nearly $486 billion, Walmart employs approximately 2.2 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 stock.walmart.com.

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Walmart de México y Centroamérica Appoints Enrique Ostalé President and CEO http://es.news.walmart.com/news-archive/2014/12/19/walmart-de-mexico-y-centroamerica-appoints-enrique-ostale-president-and-ceo Mexico City - Dec 19, 2014 - The Board of Director of Walmart de México y Centroamérica (BMV:Walmex) informs its shareholders, as well as the public in general, that Enrique Ostalé will assume the position of President and Chief Executive Officer of the company, in addit... Fri, 19 Dec 2014 15:26:00 GMT http://es.news.walmart.com/news-archive/2014/12/19/walmart-de-mexico-y-centroamerica-appoints-enrique-ostale-president-and-ceo 2014-12-19T15:26:00Z Mexico City - Dec 19, 2014 - The Board of Director of Walmart de México y Centroamérica (BMV:Walmex) informs its shareholders, as well as the public in general, that Enrique Ostalé will assume the position of President and Chief Executive Officer of the company, in addition to fulfilling his role as Chairman of the Board. This designation is effective January 1, 2015.

Ostalé joined Wal-Mart Stores, Inc. in 2009 as part of Walmart's acquisition of the Chilean retailer D&S, now Walmart Chile, where he held several positions in merchandising, operations and finance from 1989, and from 1997 to 2000 served as Chief Financial Officer (CFO). He served as President and CEO of Walmart Chile from 2006 until March 1, 2013, when he was appointed President and CEO for Latin America. In addition to leading Walmex, Ostalé will continue to oversee Walmart's operations in Latin America.

"Mexico and Central America is a priority market for Walmart. Enrique has excellent global experience within the retail industry and will drive growth opportunities throughout the region, both in stores and through our growing e-commerce business," said David Cheesewright, President and CEO of Walmart International and Walmart de Mexico y Centroamérica board member. "He is a strong leader, and his cross functional experience will ensure that we remain well positioned to serve the 2 billion customers that count on Walmex every year."

“The dual role of CEO for both Walmex and Walmart Latin America will give Enrique the unique ability to leverage our expertise and capability across nine markets, taking advantage of the growth opportunities that the whole region has to offer.”

Enrique holds an undergraduate degree in economics and business administration from the Adolfo Ibáñez University and a Master Degree from the London School of Economics. Between 2002 and 2006, he was Dean of the Business School of the Adolfo Ibáñez University in Santiago de Chile.

Walmart de México y Centroamérica also announced that Scot Rank will be leaving his position on the Board of Directors. "We appreciate the leadership role that Scot played in the Walmex business for 14 years and wish him success in his new endeavors," said Ostalé.

 

 

 

 

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Walmart Announces Senior Management Changes http://es.news.walmart.com/news-archive/2014/12/10/walmart-announces-senior-management-changes Bentonville, Ark., Dec. 10, 2014 - Today, Wal-Mart Stores, Inc. (NYSE: WMT) announced that Judith McKenna has been promoted to chief operating officer for Walmart U.S. McKenna succeeds Gisel Ruiz, who has been appointed executive vice president of Walmart's International People Division. McKenna... Wed, 10 Dec 2014 18:50:00 GMT http://es.news.walmart.com/news-archive/2014/12/10/walmart-announces-senior-management-changes 2014-12-10T18:50:00Z Bentonville, Ark., Dec. 10, 2014 – Today, Wal-Mart Stores, Inc. (NYSE: WMT) announced that Judith McKenna has been promoted to chief operating officer for Walmart U.S. McKenna succeeds Gisel Ruiz, who has been appointed executive vice president of Walmart’s International People Division.

McKenna will assume her responsibilities immediately and will continue to report directly to Walmart U.S. president and chief executive officer, Greg Foran. Ruiz will also assume her responsibilities immediately and will report to Walmart International president and chief executive officer, David Cheesewright.

"One of the great things about Walmart is the depth and breadth of talent at all levels of our organization. Around the globe, we have some of the best leaders in retail because of our focus on developing talent and our commitment to creating opportunities for diverse experiences," said Foran. "The announcements we're making today are examples of just that."

McKenna joined Walmart nearly 20 years ago as part of its Asda leadership team in the U.K., where she served as the chief financial officer and chief operating officer. She moved to Walmart International as executive vice president of strategy and international development, and most recently served as chief development officer for Walmart U.S.  As chief operating officer, McKenna will lead a team of 1.3 million associates. She will also continue to lead Walmart's small format stores, development of new formats, expansion of Walmart services and the integration of digital commerce into the retailer's existing U.S. stores.

"At her core and by experience, Judith is a retailer who has made major contributions to our business throughout her career," said Foran. "It's exciting to bring her skills in managing store operations, small format growth, logistics and e-commerce to an expanded role in our U.S. operations. Her knowledge of global best practices and her success in leading our associates around the world will help drive our Walmart U.S. business forward."

Ruiz started as a management trainee and gained a depth of experience across key roles in labor relations, operations and human resources. Most recently as chief operating officer for Walmart U.S., Ruiz led the retailer's focus on improving operational efficiencies, opened more than 400 new U.S. stores, and increased representation of women and people of color across operations leadership roles. As executive vice president of Walmart's International People Division, Ruiz will be a key member of Cheesewright's leadership team and the retailer's Global People leadership team. She will also drive Walmart's human resources strategy and priorities that reach more than one million associates in 26 countries around the world.

"Gisel is an inspirational leader who has consistently contributed to Walmart's growth and success throughout her 22 years with the company. Her proven track record and unwavering commitment to our associates make her the perfect choice for this new role," said Cheesewright. "The expertise and leadership that Gisel brings are needed as we take our International Division to the next level. I'm looking forward to the impact she'll have on our associates and business around the world."

###

About Walmart 
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 250 million customers and members visit our 11,156 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2014 sales of over $473 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

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Walmart Board of Directors Adds Former American Airlines Chairman and CEO Tom Horton http://es.news.walmart.com/news-archive/2014/11/24/walmart-board-of-directors-adds-former-american-airlines-chairman-and-ceo-tom-horton BENTONVILLE, Ark., Nov. 24, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its Board of Directors has appointed Tom Horton, former chairman and CEO of American Airlines, as a new member of the company's Board, effective Nov. 21. Horton became the 16th member of the Board and will ... Mon, 24 Nov 2014 13:30:00 GMT http://es.news.walmart.com/news-archive/2014/11/24/walmart-board-of-directors-adds-former-american-airlines-chairman-and-ceo-tom-horton 2014-11-24T13:30:00Z BENTONVILLE, Ark., Nov. 24, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its Board of Directors has appointed Tom Horton, former chairman and CEO of American Airlines, as a new member of the company’s Board, effective Nov. 21. Horton became the 16th member of the Board and will also serve as a member of the company’s Audit Committee.

"Tom's management and business experience and, in particular, his roles in operational and financial management at American Airlines will bring valuable insights to the Board," said Walmart Chairman Rob Walton. "His broad leadership roles combined with his global insights and understanding of the corporate issues a multinational company manages will benefit the Board, our management team and our shareholders."

"I've long admired Walmart's values and its successful record of improving people's lives around the world," said Horton. "Walmart has a strong leadership team backed by a solid business plan and is building new and innovative ways to serve customers. I look forward to working with my new colleagues on the Board."

Horton, 53, has more than 30 years of business and finance experience. He joined American Airlines in 1985 from international accounting partnership firm Peat Marwick & Company, now KPMG, and continued with American until 2002, rising to the role of Senior Vice President, Finance and CFO. He left American in 2002 for AT&T, where he served as CFO and later was appointed Vice Chairman. In 2005, Horton led the evaluation of strategic alternatives that ultimately led to the combination with SBC Communications, which formed the new AT&T.

In March 2006, Horton returned to American as Executive Vice President of Finance and Planning. He was named President in 2010 and Chairman and CEO in 2011, where he led American through a successful restructuring and turnaround which culminated in the merger with US Airways, creating the world's largest airline. He stepped down as President and CEO of American in December 2013 and remained non-executive Chairman of the board until June 2014.

Horton holds a Master of Business Administration degree from the Cox School of Business at Southern Methodist University (SMU) and a Bachelor of Business Administration degree, magna cum laude, from Baylor University. He serves on the Board of Directors of Qualcomm, Inc., a leading developer and innovator of advanced wireless technologies. He also serves on the Executive Board of the Cox School of Business at SMU.

About Walmart
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 250 million customers and members visit our 11,156 stores under 71 banners in 27 countries and ecommerce websites in 11 countries. With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.    
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Walmart reports FY 15 Q3 EPS of $1.15; Walmart U.S. delivers positive comp sales http://es.news.walmart.com/news-archive/investors/2014/11/13/walmart-reports-fy-15-q3-eps-of-115-walmart-us-delivers-positive-comp-sales Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings per share from continuing operations (EPS) of $1.15, within guidance of $1.10 to $1.20. This compared to last year's $1.14. Walmart U.S. comp sales increased 0.5 percent for the 13-week period ended Oct. 31, 2014. Comp sale... Thu, 13 Nov 2014 13:02:00 GMT http://es.news.walmart.com/news-archive/investors/2014/11/13/walmart-reports-fy-15-q3-eps-of-115-walmart-us-delivers-positive-comp-sales 2014-11-13T13:02:00Z
  • Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings per share from continuing operations (EPS) of $1.15, within guidance of $1.10 to $1.20. This compared to last year's $1.14.
  • Walmart U.S. comp sales increased 0.5 percent for the 13-week period ended Oct. 31, 2014. Comp sales for the Neighborhood Market format increased approximately 5.5 percent. Walmart U.S. net sales increased $2.3 billion, or 3.4 percent, to approximately $70.0 billion.
  • Consolidated net sales increased $3.2 billion, or 2.8 percent, to $118.1 billion.
  • Walmart updated its full year EPS guidance to a range of $4.92 to $5.02, which includes an estimated negative impact of approximately $0.03 per share related to the future closure of underperforming stores in Walmart Japan. The company's previous guidance was $4.90 to $5.15. Last year, Walmart reported full year EPS of $4.85, which included approximately $0.26 in certain discrete items that impacted the fourth quarter. Last year's underlying1 EPS was $5.11.
  • Walmart forecasts fourth quarter EPS between $1.46 and $1.56, which includes an estimated negative impact of approximately $0.03 per share related to the future closure of underperforming stores in Walmart Japan. Last year, Walmart reported fourth quarter EPS of $1.34, which included approximately $0.26 in discrete items. Last year's underlying1 EPS was $1.60.
  • Walmart International grew net sales 1.7 percent to $33.7 billion. On a constant currency basis,1 net sales would have increased 2.9 percent to $34.1 billion.
  • Sam's Club comp sales, without fuel,1 increased 0.4 percent for the 13-week period ended Oct. 31. Sam's Club increased membership income 10.1 percent for the quarter, and grew operating income more than twice the rate of sales growth.
  • E-commerce sales globally increased approximately 21 percent on a constant currency basis.
1 See additional information at the end of this release regarding non-GAAP financial measures.

BENTONVILLE, Ark.--(BUSINESS WIRE)--Nov. 13, 2014-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the third quarter ended October 31, 2014. Consolidated net sales for the third quarter were $118.1 billion, an increase of 2.8 percent over last year. This quarter included the negative impact of approximately $396 million from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 3.1 percent to $118.5 billion. Membership and other income increased 13.9 percent versus last year. Total revenue was $119.0 billion, an increase of approximately $3.3 billion, or 2.9 percent.

Consolidated net income attributable to Walmart was $3.7 billion, a decrease of 0.7 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.15, or 0.9 percent above last year's $1.14. Additionally, the company's effective tax rate was 31.8 percent, below the previous guidance of around 34 percent, due to certain discrete tax matters. While the company benefited in the quarter from a lower than anticipated tax rate, the benefit was offset by a number of discrete charges. Operating expenses were impacted by an organizational restructuring in the U.K. and the Hurricane Odile losses in Mexico. Net interest expense was impacted as a result of reclassifying certain store leases from operating leases to capital leases.

Solid EPS performance
"Walmart reported solid earnings per share of $1.15 in the third quarter," said Doug McMillon, Wal-Mart Stores, Inc. president and CEO. "The highlights for the quarter include the positive comp in Walmart U.S., including the strong performance from Neighborhood Markets, the 21 percent increase in e-commerce sales globally and the profit performances from Sam's Club and our International business."

McMillon stressed the need to strengthen Walmart's sales growth and improve the customer experience, both in stores and online.

"We're investing in key areas of our business, including wages in our U.S. stores and in e-commerce and mobile capabilities. We continue to see opportunities to improve our business," he added. "Being the price leader is an ongoing priority for us and a commitment to customers. As with every year, that is even more important during the holiday season. We have some things in our favor this fourth quarter, including lower fuel prices in the U.S. and other key markets, and we're set to deliver for customers during this time."

Guidance
"Our earnings per share guidance assumes several important factors, including the economic conditions in several of our largest markets, and a highly promotional holiday season," said Charles Holley, executive vice president and chief financial officer. "As a reminder, our full year EPS guidance includes the four factors we discussed last quarter, which were higher U.S. health-care costs, incremental investments in e-commerce, ongoing investments in Sam's Club, and our effective tax rate. We anticipate our full year effective tax rate will range between 32 and 34 percent.

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

"While historically our tax rate tends to moderate toward the end of the fiscal year, it is important to remember that assessments of certain tax contingencies, valuation allowances, changes in tax law, outcomes of administrative audits and the impact of discrete items could affect our rate," added Holley. "We are monitoring progress in Congress with respect to the extension of certain U.S. income tax legislation that expired at the end of calendar year 2013, which if not passed, could drive our effective tax rate toward the high end of our estimated range for the full year.

"Taking all of these factors into account, we are forecasting EPS for the fourth quarter between $1.46 and $1.56," said Holley," and EPS for the full year to range between $4.92 and $5.02, which compares to our previous guidance of $4.90 to $5.15. These ranges include our estimate of approximately $0.03 per share in charges related to the previously announced future closure of underperforming stores in Walmart Japan."

Returns
The company paid $1.5 billion in dividends and repurchased approximately 1.1 million shares for $82 million in the third quarter. In total, the company returned approximately $1.6 billion to shareholders through dividends and share repurchases.

Return on investment1 (ROI) for the trailing 12-months ended Oct. 31, 2014 was 16.4 percent, compared to 17.5 percent for the prior comparable period. The decrease in ROI was primarily due to lower operating income, as well as ongoing capital investment in store growth and e-commerce initiatives.

Free cash flow1 was $7.2 billion for the nine months ended Oct. 31, 2014, compared to $3.8 billion in the prior year. The increase in free cash flow was primarily due to the timing of income tax payments and capital expenditures.

U.S. comparable store sales results
The company reported U.S. comparable store sales based on its 13-week and 39-week retail calendar for the periods ended Oct. 31, 2014 and Oct. 25, 2013 as follows:

           
Without Fuel With Fuel Fuel Impact
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
10/31/2014     10/25/2013 10/31/2014     10/25/2013 10/31/2014     10/25/2013
Walmart U.S. 0.5%     -0.3% 0.5%     -0.3% 0.0%   0.0%
Sam's Club 0.4%     1.1% 0.3%     0.1% -0.1%     -1.0%
Total U.S. 0.5%     -0.1% 0.5%     -0.2% 0.0%     -0.1%
 
Without Fuel With Fuel Fuel Impact
39 Weeks Ended 39 Weeks Ended 39 Weeks Ended
10/31/2014     10/25/2013 10/31/2014     10/25/2013 10/31/2014     10/25/2013
Walmart U.S. 0.1% -0.7% 0.1% -0.7% 0.0% 0.0%
Sam's Club 0.0%     1.0% 0.0%     0.5% 0.0%     -0.5%
Total U.S. 0.1%     -0.4% 0.1%     -0.5% 0.0%     -0.1%
 
1 See additional information at the end of this release regarding non-GAAP financial measures.

During the 13-week period, Walmart U.S. comp traffic decreased 0.7 percent, while average ticket increased 1.2 percent.

Excluding fuel,1 Sam's Club comp traffic was up 0.2 percent, and average ticket increased 0.2 percent.

The company's e-commerce sales impact includes those sales initiated through the company's websites and fulfilled through the company's dedicated e-commerce distribution facilities, as well as an estimate for sales initiated online, but fulfilled through the company's stores and clubs. E-commerce sales positively impacted comp sales in Walmart U.S. by approximately 20 basis points, and positively impacted Sam's Club comp sales by approximately 20 basis points for the 13-week period.

Net sales results
Net sales, including fuel, were as follows:

       
Three Months Ended Nine Months Ended
October 31, October 31,
(dollars in billions) 2014     2013     Percent Change 2014     2013     Percent Change
Walmart U.S. $ 70.025     $ 67.692     3.4 % $ 208.478     $ 202.973     2.7 %
Walmart International 33.659 33.109 1.7 % 99.955 98.839 1.1 %
Sam's Club 14.392     14.075     2.3 % 43.146     42.478     1.6 %
Consolidated $ 118.076     $ 114.876     2.8 % $ 351.579     $ 344.290     2.1 %
 
The following explanations provide additional context to the above table.

  • On a constant currency basis,1 Walmart International's net sales for the quarter would have been $34.1 billion, an increase of 2.9 percent over last year. Currency exchange rate fluctuations negatively impacted net sales by $396 million.
  • Sam's Club net sales, excluding fuel,1 were $12.7 billion, an increase of 2.3 percent over last year.
  • On a constant currency basis,1 consolidated net sales would have increased 3.1 percent to $118.5 billion.
"We had several merchandise categories driving top-line growth," said Greg Foran, Walmart U.S. president and CEO. "I'm encouraged by our performance during key seasonal events. We had strong back-to-school results in apparel, home and school supplies, and we ended the quarter well by executing a strong Halloween event."

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 Nine Months Ended
October 31, October 31,
(dollars in billions) 2014     2013     Percent Change 2014     2013     Percent Change
Walmart U.S. $ 4.932     $ 4.991     -1.2 % $ 15.159     $ 15.571     -2.6 %
Walmart International 1.430 1.379 3.7 % 4.121 3.921 5.1 %
Sam's Club 0.493     0.440     12.0 % 1.466     1.448     1.2 %
Sam's Club (excluding fuel) 0.455     0.432     5.3 % 1.398     1.435     -2.6 %
 
"We're being purposeful to have the right balance of wages to serve customers. We're focused on improving customer service, particularly for the holiday season," said Foran. "Overall, operating expenses deleveraged 10 basis points, and coupled with the decline in gross margin rate, led to a 1.2 percent decrease in operating income."

"We had a solid third quarter, once again growing operating income faster than sales, and we gained share in most of our largest markets," said David Cheesewright, Walmart International president and CEO. "I'm excited about the steps we've taken to accelerate growth in e-commerce, including the launch of new expanded assortments and services in Mexico and China. We also expanded the number of collection points for online customers in the U.K. and China."

"Although we lapped the fee increase from last year, our membership income growth remained strong at 10.1 percent," said Rosalind Brewer, Sam's Club president and CEO. "Clearly, our members responded positively to our efforts to enhance membership value."

U.S. comparable store sales review and guidance
"Our 0.5 percent comp was the first positive comp in seven quarters. Our overall grocery comp, which includes food and consumables, was relatively flat," Foran said. "Comp sales were positively impacted by net inflation, but were negatively affected by SNAP-related headwinds.

"I'm pleased by our Neighborhood Market performance, which reported an approximately 5.5 percent comp for the quarter," explained Foran. "We continued to see sales increases in Neighborhood Market pharmacy and strong growth in consumables, as we focused on in-stock and optimizing the store with relevant offerings for the customer."

For the 13-week period ending Jan. 30, 2015, Walmart U.S. expects comp store sales to be between flat and 1 percent. Last year, Walmart's comp sales declined 0.4 percent for the 14-week period ended Jan. 31, 2014.

"In the third quarter, comps increased 0.4 percent, driven by relatively balanced growth in traffic and ticket," said Brewer. "We were pleased to see a cumulative comp improvement of 90 basis points over the 39-week period, and we are working even faster to infuse newness in our business to drive membership value."

Sam's Club expects comp sales, excluding fuel,1 for the 13-week period ending Jan. 30, 2015 to be between flat and 2 percent. Last year, comp sales, excluding fuel,1 decreased 0.1 percent for the 14-week period ended Jan. 31, 2014.

Walmart U.S. and Sam's Club will report comparable sales for the 13-week period ending Jan. 30, 2015 on Feb. 19, when the company reports fourth quarter and fiscal year results.

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 250 million customers and members visit our 11,156 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.

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 and related information can be accessed via webcast by visiting the investor information area on the company's website at www.stock.walmart.com. 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 U.S. and International operations are available for download at 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 and projections of the company's diluted earnings per share from continuing operations attributable to Walmart for the fiscal year ending Jan. 31, 2015 and the three months ending Jan. 31, 2015, the effect on such earnings per share for such periods of charges expected to be taken by the company in connection with the closure of underperforming stores in Walmart Japan, the company's effective tax rate for the fiscal year ending Jan. 31, 2015, and the comparable store sales of the Walmart U.S. segment and the comparable club sales, excluding fuel, of the Sam's Club segment for the 13-week period from Nov. 1, 2014 through Jan. 30, 2015 (and assumptions underlying those forecasts), and other statements concerning Walmart's objectives and plans 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 "anticipate," "EPS guidance," "estimate," "estimated," "expects," "forecasting," "forecasts," "guidance," 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 the company operates, including unemployment and underemployment in those markets; competitive initiatives of other retailers and competitive pressures; the amount of inflation or deflation that occurs, both generally and in certain product categories; consumer confidence, disposable income, credit availability, spending levels, spending patterns and debt levels; consumer demand for certain merchandise; customer traffic in the company's stores and clubs and on the company's e-commerce websites and average ticket size; consumer acceptance of the company's e-commerce websites in various markets; consumer acceptance of the company's merchandise offerings in its stores and clubs and on the company's e-commerce websites; consumer acceptance of the company's stores and merchandise in the markets in which new units are opened; consumer shopping patterns in the markets in which the small store expansion of the Walmart U.S. operating segment occurs; the disruption of seasonal buying patterns in the United States and other markets; geo-political conditions and events; changes in the level of public assistance payments; customer acceptance of new initiatives and programs of the company and its operating segments; weather conditions and events and their effects; catastrophic events and natural disasters and their effects; 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 and diesel fuel; 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 health-care and other benefits; the number of associates enrolling in Walmart's health-care plans; delays in the opening of new, expanded or relocated units planned to be opened during the three months ending Jan. 31, 2015; any unanticipated pre-opening costs incurred in connection with the opening of new stores in the three months ending Jan. 31, 2015; unanticipated costs associated with the closure of underperforming stores in Walmart Japan and the number of such stores that are closed in the three months ending Jan. 31, 2015; casualty and other insurance costs; accident- related costs; 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 FCPA- and compliance-related matters, including enhancements to Walmart's compliance program and ongoing investigations; currency exchange rate fluctuations; changes in market interest rates; conditions and events affecting domestic and global financial and capital markets; factors that may affect the company's effective tax rate, including the company's performance, changes in the company's assessment of certain tax contingencies, valuation allowances, changes in law, including the outcome of pending U.S. Congressional actions regarding the extension of certain tax legislation, outcomes of administrative audits, the impact of discrete items, and the mix of earnings among the company's U.S. and international operations; changes in generally accepted accounting principles; unanticipated changes in accounting estimates or judgments; 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. The company cannot assure you that the results or developments anticipated by the company and reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results or developments will result in the expected, forecast or projected consequences for us or affect us, our operations or our financial performance as we have expected, forecasted or projected. As a result of the matters discussed above, 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 Nine Months Ended
SUBJECT TO RECLASSIFICATION October 31, October 31,
(Dollars in millions, except share data)   2014     2013   Percent Change   2014     2013   Percent Change
Revenues:
Net sales $ 118,076 $ 114,876 2.8 % $ 351,579 $ 344,290 2.1 %
Membership and other income   925     812   13.9 %   2,507     2,298   9.1 %
Total revenues 119,001 115,688 2.9 % 354,086 346,588 2.2 %
Costs and expenses:
Cost of sales 89,247 86,687 3.0 % 265,971 260,098 2.3 %
Operating, selling, general and administrative expenses   23,489     22,691   3.5 %   68,917     66,965   2.9 %
Operating income 6,265 6,310 (0.7 )% 19,198 19,525 (1.7 )%
Interest:
Debt 561 527 6.5 % 1,601 1,556 2.9 %
Capital leases 115 65 76.9 % 237 198 19.7 %
Interest income   (20 )   (12 ) 66.7 %   (76 )   (92 ) (17.4 )%
Interest, net   656     580   13.1 %   1,762     1,662   6.0 %
Income from continuing operations before income taxes 5,609 5,730 (2.1 )% 17,436 17,863 (2.4 )%
Provision for income taxes   1,783     1,860   (4.1 )%   5,810     5,856   (0.8 )%
Income from continuing operations 3,826 3,870 (1.1 )% 11,626 12,007 (3.2 )%
Income from discontinued operations, net of income taxes       15   (100.0 )%   285     38   650.0 %
Consolidated net income 3,826 3,885 (1.5 )% 11,911 12,045 (1.1 )%
Less consolidated net income attributable to noncontrolling interest   (115 )   (147 ) (21.8 )%   (514 )   (454 ) 13.2 %
Consolidated net income attributable to Walmart $ 3,711   $ 3,738   (0.7 )% $ 11,397   $ 11,591   (1.7 )%
 
Income from continuing operations attributable to Walmart:
Income from continuing operations $ 3,826 $ 3,870 (1.1 )% $ 11,626 $ 12,007 (3.2 )%
Less income from continuing operations attributable to noncontrolling interest   (115 )   (143 ) (19.6 )%   (410 )   (443 ) (7.4 )%
Income from continuing operations attributable to Walmart $ 3,711   $ 3,727   (0.4 )% $ 11,216   $ 11,564   (3.0 )%
 
 
Basic net income per common share:
Basic income per common share from continuing operations attributable to Walmart $ 1.15 $ 1.14 0.9 % $ 3.47 $ 3.53 (1.7 )%
Basic income per common share from discontinued operations attributable to Walmart       0.01   (100.0 )%   0.06       100.0 %
Basic net income per common share attributable to Walmart $ 1.15   $ 1.15   % $ 3.53   $ 3.53   %
 
Diluted net income per common share:
Diluted income per common share from continuing operations attributable to Walmart $ 1.15 $ 1.14 0.9 % $ 3.46 $ 3.51 (1.4 )%
Diluted income per common share from discontinued operations attributable to Walmart         %   0.05     0.01   400.0 %
Diluted net income per common share attributable to Walmart $ 1.15   $ 1.14   0.9 % $ 3.51   $ 3.52   (0.3 )%
 
Weighted-average common shares outstanding:
Basic 3,229 3,257 3,231 3,279
Diluted 3,240 3,271 3,243 3,293
 
Dividends declared per common share $ 1.92 $ 1.88
 
             
Wal-Mart Stores, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 
SUBJECT TO RECLASSIFICATION
(Dollars in millions) October 31, January 31, October 31,
ASSETS 2014   2014   2013  
Current assets:
Cash and cash equivalents $ 6,718 $ 7,281 $ 8,736
Receivables, net 6,091 6,677 6,206
Inventories 51,501 44,858 49,673
Prepaid expenses and other 1,531 1,909 2,160
Current assets of discontinued operations   460   367  
Total current assets 65,841 61,185 67,142
Property and equipment:
Property and equipment 177,494 173,089 170,967
Less accumulated depreciation (62,519 ) (57,725 ) (56,313 )
Property and equipment, net 114,975 115,364 114,654
Property under capital leases:
Property under capital leases 5,632 5,589 5,668
Less accumulated amortization (3,115 ) (3,046 ) (3,095 )
Property under capital leases, net 2,517 2,543 2,573
 
Goodwill 18,888 19,510 19,729
Other assets and deferred charges 5,668   6,149   5,778  
Total assets $ 207,889   $ 204,751   $ 209,876  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings $ 6,019 $ 7,670 $ 12,817
Accounts payable 39,656 37,415 39,221
Dividends payable 1,553 1,573
Accrued liabilities 18,773 18,793 18,606
Accrued income taxes 383 966 255
Long-term debt due within one year 4,874 4,103 4,147
Obligations under capital leases due within one year 302 309 315
Current liabilities of discontinued operations   89   87  
Total current liabilities 71,560 69,345 77,021
 
Long-term debt 41,720 41,771 41,702
Long-term obligations under capital leases 2,767 2,788 2,841
Deferred income taxes and other 7,789 8,017 8,298
Redeemable noncontrolling interest 1,491 1,492
 
Commitments and contingencies
 
Equity:
Common stock 323 323 324
Capital in excess of par value 2,223 2,362 2,364
Retained earnings 80,814 76,566 72,888
Accumulated other comprehensive income (loss) (4,251 ) (2,996 ) (2,183 )
Total Walmart shareholders’ equity 79,109 76,255 73,393
Nonredeemable noncontrolling interest 4,944   5,084   5,129  
Total equity 84,053   81,339   78,522  
Total liabilities and equity $ 207,889   $ 204,751   $ 209,876  
         
Wal-Mart Stores, Inc. Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
 
Nine Months Ended
SUBJECT TO RECLASSIFICATION October 31,
(Dollars in millions)   2014     2013  
Cash flows from operating activities:
Consolidated net income $ 11,911 $ 12,045
(Income) loss from discontinued operations, net of income taxes   (285 )   (38 )
Income from continuing operations 11,626 12,007
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 6,881 6,600
Deferred income taxes (233 ) 594
Other operating activities 592 465
Changes in certain assets and liabilities:
Receivables, net 459 191
Inventories (6,929 ) (6,230 )
Accounts payable 3,068 2,089
Accrued liabilities 583 (95 )
Accrued income taxes   (577 )   (2,301 )
Net cash provided by operating activities 15,470 13,320
 
Cash flows from investing activities:
Payments for property and equipment (8,243 ) (9,506 )
Proceeds from the disposal of property and equipment 459 521
Proceeds from disposal of certain operations 671
Other investing activities   (44 )   (156 )
Net cash used in investing activities (7,157 ) (9,141 )
 
Cash flows from financing activities:
Net change in short-term borrowings (1,843 ) 6,046
Proceeds from issuance of long-term debt 5,120 7,053
Payments of long-term debt (3,883 ) (4,943 )
Dividends paid (4,639 ) (4,625 )
Purchase of Company stock (1,015 ) (5,806 )
Dividends paid to noncontrolling interest (401 ) (365 )
Purchase of noncontrolling interest (1,804 ) (247 )
Other financing activities   (393 )   (149 )
Net cash used in financing activities (8,858 ) (3,036 )
 
Effect of exchange rates on cash and cash equivalents   (18 )   (188 )
 
Net increase (decrease) in cash and cash equivalents (563 ) 955
Cash and cash equivalents at beginning of year   7,281     7,781  
Cash and cash equivalents at end of period $ 6,718   $ 8,736  
 
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 possible short-term impacts.

ROI was 16.4 percent and 17.5 percent for the trailing 12 months ended October 31, 2014 and 2013, respectively. The decline in ROI was primarily due to the decrease in operating income, as well as our continued capital investment in store growth and e-commerce.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months 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 average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period, plus a rent factor equal to the rent for the fiscal year or trailing 12 months 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 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. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. In addition, we include 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 generally accepted accounting principles ("GAAP") that is the most directly comparable financial measure to our calculation of ROI. ROI differs from ROA (which is consolidated income from continuing operations for the period divided by average total assets of continuing operations for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets of continuing operations 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 management to calculate our ROI may differ from the methods used by other companies 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

October 31,
(Dollars in millions)   2014     2013  
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 26,545 $ 28,105
+ Interest income 103 146
+ Depreciation and amortization 9,151 8,775
+ Rent   2,898     2,667  
Adjusted operating income $ 38,697   $ 39,693  
 
Denominator
Average total assets of continuing operations1

$ 208,699 $ 207,624
+Average accumulated depreciation and amortization1 62,521 56,533
- Average accounts payable1 39,439 39,747
- Average accrued liabilities1 18,690 18,571
+ Rent x 8   23,184     21,336  
Average invested capital $ 236,275   $ 227,175  
Return on investment (ROI)   16.4 %   17.5 %
 
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 16,170   $ 17,870  
Denominator
Average total assets of continuing operations1 $ 208,699   $ 207,624  
Return on assets (ROA)   7.7 %   8.6 %
 
As of October 31,
Certain Balance Sheet Data   2014   2013     2012  
Total assets of continuing operations $ 207,889 $ 209,509 $ 205,738
Accumulated depreciation and amortization 65,634 59,408 53,658
Accounts payable 39,656 39,221 40,272
Accrued liabilities 18,773 18,606 18,536
 
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 $7.2 billion and $3.8 billion for the nine months ended October 31, 2014 and 2013, respectively. The increase in free cash flow was primarily due to the timing of income tax payments and capital expenditures.

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 income from continuing operations 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 Walmart's management to calculate our free cash flow may differ from the methods used by other companies 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.

     
Nine Months Ended
October 31,
(Dollars in millions)   2014         2013  
Net cash provided by operating activities $ 15,470 $ 13,320
Payments for property and equipment   (8,243 )   (9,506 )
Free cash flow $ 7,227   $ 3,814  
 
Net cash used in investing activities1 $ (7,157 ) $ (9,141 )
Net cash used in financing activities $ (8,858 ) $ (3,036 )
 
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, if any, 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 nine months ended October 31, 2014.

                 
Three Months Ended October 31, 2014 Nine Months Ended October 31, 2014
International     Consolidated International     Consolidated
(Dollars in millions)   2014     Percent Change   2014     Percent Change   2014     Percent Change   2014     Percent Change
Net sales:        
As reported $ 33,659 1.7 % $ 118,076 2.8 % $ 99,955 1.1 % $ 351,579 2.1 %
Currency exchange rate fluctuations1   396     396     2,668     2,668  
34,055 118,472 102,623 354,247
Net sales from acquisitions                
Constant currency net sales $ 34,055     2.9 %     $ 118,472     3.1 %       $ 102,623     3.8 %     $ 354,247     2.9 %
 
Operating income:
As reported $ 1,430 3.7 % $ 6,265 (0.7 )% $ 4,121 5.1 % $ 19,198 (1.7 )%
Currency exchange rate fluctuations1   21     21     62     62  
1,451 6,286 4,183 19,260
Operating income (loss) from acquisitions                
Constant currency operating income $ 1,451     5.2 %     $ 6,286     (0.4 )%       $ 4,183     6.7 %     $ 19,260     (1.4 )%
 
1 Excludes currency exchange rate fluctuations related to acquisitions until the acquisitions are included in both comparable periods.

 
Underlying EPS

The underlying diluted earnings per share from continuing operations attributable to Walmart ("Underlying EPS") for the three months and the fiscal year ended Jan. 31, 2014 is considered a non-GAAP financial measure under the SEC's rules because the Underlying EPS for each such period includes certain amounts not included in the diluted earnings per share from continuing operations attributable to Walmart calculated in accordance with GAAP ("EPS") for the three months and the fiscal year ended Jan. 31, 2014. Management believes that the Underlying EPS for the three months and the fiscal year ended Jan. 31, 2014 is a meaningful metric to share with investors because that metric, which adjusts EPS for each of such periods for certain items recorded in the three months and fiscal year ended Jan. 31, 2014, is the metric that best compares with the EPS for the three months and the fiscal year ended Jan. 31, 2013, respectively. In addition, the metric affords investors a view of what management considers Walmart's core earnings performance for the three months and the fiscal year ended Jan. 31, 2014 and also affords investors the ability to make a more informed assessment of such core earnings performance for each of such periods when compared to Walmart's earnings performance for the three months and the fiscal year ended Jan. 31, 2013, respectively.

We have calculated the Underlying EPS for the three months and the fiscal year ended Jan. 31, 2014 by adjusting the EPS for each period for the amount of the dilutive impact of: (1) Brazil non-income tax contingencies ("Brazil Taxes"); (2) Brazil employment claim contingencies ("Brazil Employment Matters"); (3) the closure of 54 underperforming Brazil and China stores ("Store Closures"); (4) China store lease expense charges ("Lease Matters"); (5) the India transaction ("India Transaction"); and (6) Sam's Club U.S. staff restructuring and club closure ("Sam's Restructuring").

Underlying EPS for the three months and the fiscal year ended Jan. 31, 2014 is a non-GAAP financial measure. The most directly comparable financial measure calculated in accordance with GAAP is EPS for the three months and the fiscal year ended Jan. 31, 2014.

       
Underlying EPS
    Three Months Ended

January 31, 2014

Fiscal Year Ended

January 31, 2014

Diluted net income per common share:
 
Underlying EPS $ 1.60 $ 5.11
Adjustments to Underlying EPS
 
Brazil Taxes (0.06) (0.06)
Brazil Employment Matters (0.05) (0.05)
Store Closures (0.06) (0.06)
Lease Matters (0.03) (0.03)
India Transaction (0.05) (0.05)
Sam's Restructuring (0.01) (0.01)
 
EPS $1.34 $ 4.85
 
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 13-week and 39-week periods ended Oct. 31, 2014 and Oct. 25, 2013, the projected comparable club sales of Sam's Club for the 13 weeks ending Jan. 30, 2015 and the comparable club sales of Sam's Club for the 13 weeks ended Jan. 31, 2014, in each case calculated by excluding Sam's Club's fuel sales for such periods (the "Sam's Club Comparable Sales Measures");
  • the net sales of Sam's Club for the three months ended Oct. 31, 2014 and the percentage increase in the net sales of Sam's Club for the three months ended Oct. 31, 2014 over the net sales of Sam's Club for the three months ended Oct. 31, 2013 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 and nine months ended Oct. 31, 2014 and 2013, the percentage increase in the segment operating income of Sam's Club for the three months ended Oct. 31, 2014 over the segment operating income of Sam's Club for the three months ended Oct. 31, 2013, and the percentage decrease in the segment operating income of Sam's Club for the nine months ended Oct. 31, 2014 over the segment operating income of Sam's Club for the nine months ended Oct. 31, 2013, in each case calculated by excluding Sam's Club's fuel sales for the relevant period (collectively with the financial measures described in the immediately preceding bullet point, the "Sam's Club Measures").
We believe the Sam's Club comparable club sales for the historical periods for which the corresponding Sam's Club Comparable Sales Measures are presented calculated by including fuel sales are the financial measures computed in accordance with GAAP most directly comparable to the respective Sam's Club Comparable Sales Measures. We believe Sam's Club's projected comparable club sales for the 13-week period ending Jan. 30, 2015 calculated by including fuel sales 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-week period ending Jan. 30, 2015 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 Sam’s Club Measures.

We believe that the presentation of the Sam's Club 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.





Source: Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc.
Media Relations:
Randy Hargrove, 800-331-0085
or
Investor Relations:
Carol Schumacher, 479-277-1498
or
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Passcode: 9256278 (Walmart)




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Walmart will accelerate investments in e-commerce and moderate global square footage growth http://es.news.walmart.com/news-archive/2014/10/15/walmart-will-accelerate-investments-in-e-commerce-and-moderate-global-square-footage-growth Investments in e-commerce and digital initiatives are expected to range between $1.2 and $1.5 billion in fiscal year 2016, up from approximately $1.0 billion, estimated for this year.  The company will add between 26 and 30 million net retail square feet worldwide next year, a decrease from ... Wed, 15 Oct 2014 19:04:00 GMT http://es.news.walmart.com/news-archive/2014/10/15/walmart-will-accelerate-investments-in-e-commerce-and-moderate-global-square-footage-growth 2014-10-15T19:04:00Z
  • Investments in e-commerce and digital initiatives are expected to range between $1.2 and $1.5 billion in fiscal year 2016, up from approximately $1.0 billion, estimated for this year.  
    • The company will add between 26 and 30 million net retail square feet worldwide next year, a decrease from this year’s anticipated 32 to 34 million square feet, due to a moderation of large format store growth and accelerated e-commerce investments.
    • The company’s updated guidance for capital expenditures in its current fiscal year of $12.5 to $13.0 billion compares to its forecast of $12.4 to $13.4 billion provided in February 2014.
    • Capital investments will range between $11.6 and $12.9 billion for fiscal year 2016, including a stepped up commitment for e-commerce. This is below the updated range for fiscal year 2015 of $12.5 to $13.0 billion, due to the change in mix of spending toward more digital growth and a moderation of physical store growth.  
    • The company also expects fiscal year 2016 net sales growth to range between 2 and 4 percent, which translates into approximately $10 to $20 billion in net sales.
    BENTONVILLE, Ark., Oct. 15, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today presented its capital expenditure plans for the next fiscal year ending Jan. 31, 2016 at its 21st annual meeting for the investment community. Total capital spending for fiscal year 2016 is projected to range between $11.6 and $12.9 billion, including approximately $1.2 to $1.5 billion for e-commerce and digital initiatives.

    "This is an exciting time for Walmart, as there are so many new ways to serve customers.  Exceeding customer expectations has always been our goal, and we have short-and long-term opportunities to do that even better," said Wal-Mart Stores, Inc. President and CEO Doug McMillon.  "We'll change the mix of our capital spend next year to provide greater access, while continuing to focus on price leadership, service, and a broad assortment. We'll give customers the choices they want and need in ways that only Walmart can."

    The company also indicated that as a result of a tougher sales environment than it anticipated a year ago, it now expects to grow net sales for the current fiscal year between 2 and 3 percent on last year's $473.1 billion. The company indicated in February that it expected net sales growth to be at the low end of its guidance provided last October of 3 to 5 percent.

    Charles Holley, Walmart’s executive vice president and chief financial officer, outlined the company’s financial priorities for growth and detailed the investment and expansion plans for fiscal year 2016.  

    "Our business and customers continue to evolve and so will the way we deploy capital. We will invest more heavily in e-commerce initiatives, while temporarily moderating our global physical growth, particularly larger stores," Holley explained. "We are focused on creating an endless aisle and appealing to our customers' changing needs."     

    Holley also discussed the financial performance of the company’s e-commerce business and provided more insight into certain financial metrics.

    "Globally, we expect to finish this year with approximately $12.5 billion in e-commerce sales," said Holley.  "Looking forward we expect an increase in global e-commerce sales of around 25 percent in fiscal year 2016, and we anticipate growth over the three-year period from fiscal years 2016 through 2018 to average 30 to 40 percent.

    “The greatest investment of capital and in operating loss for our e-commerce operations will come over the next 18 to 24 months, and then we would expect to see that investment start to moderate in fiscal 2018,” Holley added.

    The company expects net sales to increase by 2 to 4 percent next year.  

    "This translates into approximately $10 to $20 billion of net sales growth," Holley said. "Operating expenses will grow at a rate somewhat faster than sales growth and operating income will be flat to slightly down, given our investments in technology, e-commerce and digital."

    Capital expenditure details for fiscal year 2016

    Projected capital expenditures are as follows and exclude the impact of future acquisitions, if any:

    Capital Expenditure Detail
    (US$ billions)
    Segment
    FY 14 Actual
    FY 15 Guidance (Feb.)
    FY 15 Guidance (Oct.)
    FY 16 Projected
    Walmart U.S.
    $6.4
    $6.4 – 6.9
    $6.6 – 6.8
    $6.1 – 6.6
    Walmart International
    $4.4
    $4.0 – 4.5
    $3.8 – 4.1
    $3.7 – 4.2
    Sam’s Club
    $1.1
    ~$1.0
    ~$0.9
    ~$0.8
    Total segments
    $11.9
    ~$11.4 – 12.4
    ~$11.3 – 11.8
    ~$10.6 – 11.6
    Corporate & support
    $1.2
    ~$1.0
    ~$1.2
    $1.0 – $1.3
    Total
    $13.1
    ~$12.4 – 13.4
    ~$12.5– 13.0
    ~$11.6 – 12.9
     
    The capital expenditures listed below provide the breakdown between the company’s physical, e-commerce and digital initiatives provided above.

    Capital Expenditure Detail
    (US$ billions)
     

    FY 14
    Actual
    FY 15
    Guidance (Feb.)
    FY 15
    Guidance (Oct.)
    FY 16
    Projected
    Physical
    $12.7
    ~$11.6 – 12.6
    $11.5 – 12.0
    ~$10.4 $11.4
    E-commerce & digital
    $0.4
    ~$0.8
    ~$1.0
    ~$1.2 – 1.5
     
    Holley also discussed the importance of the increased investment in e-commerce. 

    “We expect capital investments in e-commerce worldwide to be between $1.2 and $1.5 billion next year,” Holley explained, “and these investments will include technology, infrastructure and other areas to support e-commerce and digital initiatives to serve customers.”

    In fiscal year 2016, the company plans to add between 26 and 30 million net retail square feet, reflecting moderation of new store openings across its segments.  Net retail square footage growth (excluding future acquisitions, if any) is projected as follows:

    Net Retail Square Footage Growth
    (in millions)
    Segment
    FY 14
    Actual
    FY 15 
    Guidance (Feb.)
    FY 15
    Guidance (Oct.)
    FY 16 Projected
    Walmart U.S.
    18.4
    ~21 – 23
    ~21 – 22
    ~15 – 16
    Walmart International
    12.5
    ~12 – 14
    ~9 – 10
    ~10 – 13
    Sam’s Club
    1.7
    ~2
    ~2
    ~1
    Total
    32.6
    ~35 – 39
    ~32 – 34
    ~26 – 30
     
    Actual and projected Walmart U.S. units include new stores and conversions. Given the conversion of Walmart discount stores to supercenters, the total number of supercenter units will continue to increase, as the number of discount stores declines. Actual and projected Sam's Club units include new stores, expansions and relocations. Unit growth in the United States is projected as follows:

    Total U.S. Unit Growth
    (Gross)
    Segment
    FY 14
    Actual
    FY 15 
    Guidance (Feb.)
    FY 15
    Guidance (Oct.)
    FY 16 Projected
    Supercenters*
    130
    ~115
    ~120
    ~60 – 70
    Small format stores**
    121
    ~270 – 300
    ~ 240
    ~200 – 220
    Total Walmart U.S.
    251
    ~385 – 415
    ~360  
    ~260 – 290
    Sam’s Club
    20
    ~17– 22
    ~20
    ~9  12
    Total
    271
    ~402 – 437
    ~380
    ~269 302
    *Existing supercenters average approximately 179K square feet.
    ** Existing Neighborhood Markets and rebranded Walmart Express stores range between 12K and 66K square feet.


    Walmart U.S. details


    In February 2014, Walmart U.S. increased its original fiscal 2015 projected capital investment by $600 million to a range of $6.4 to $6.9 billion due to an acceleration of approximately 150 small format openings. However, as a result of the timing of certain planned small format openings, Walmart U.S. now expects to open approximately 240 small format units in fiscal 2015, and carry over approximately 20 units into fiscal 2016.

    The company also indicated that during the testing of its Walmart Express format, the analysis showed customers rely on these stores for a variety of reasons, including grocery fill-in trips, last-minute dinner plans and picking up prescriptions. These patterns closely align with how customers also shop the Neighborhood Market format, which has become a recognizable brand that customers identify as a high quality, local grocery store. Therefore, the company will rebrand Walmart Express as Neighborhood Market and will utilize this brand for all small format stores, regardless of square footage.

    "We know that our supercenters are an important format for the stock-up trip, but we want to be thoughtful about our investment, ensuring that we align the space to evolving customer needs," said Walmart U.S. President and CEO Greg Foran.  "To do this, we will moderate supercenter growth in fiscal 2016.  Our investment in Neighborhood Markets will go forward because they continue to show strong results across the box and they provide our customers with convenient access to grocery, pharmacy services, and other quick-trip needs." 

    Fiscal year 2016 capital investments are projected to range between $6.1 and $6.6 billion.  The forecast includes new stores, remodels, conversions, relocations, logistics, e-commerce and technology infrastructure, and reflects the additions of new units that will expand Walmart U.S.'s retail space by approximately 15 to 16 million net retail square feet. The company expects to open between 60 and 70 supercenters and 200 to 220 Neighborhood Markets.  


    Sam’s Club details

    Sam's Club will spend approximately $0.9 billion to open about 20 clubs this year, including relocations and expansions.  Sam's Club is also remodeling approximately 55-60 clubs this year. 

    "Our new clubs continue to perform well.  Starting in the third quarter of this year, our new clubs incorporate several layout improvements, including an expanded fresh area and a combined health and wellness solutions center.  These updates enhance the member shopping experience, and drive stronger sales and leverage labor efficiencies," said Sam's Club President and CEO Rosalind Brewer. 

    During fiscal year 2016, Sam's Club will open approximately 9 to 12 clubs, including relocations and expansions.  Remodeling is slated for between 60 and 65 clubs.  Sam's Club is projecting a reduction in capital expenditures to approximately $0.8 billion from its revised fiscal 2015 estimate of $0.9 billion. Sam's Club will continue to invest in membership and merchandise capabilities.

    “We are reducing the number of new club openings for next year and accelerating technology initiatives that integrate our physical locations with our digital capabilities,” Brewer explained.    


    Walmart International details

    In February 2014, Walmart International indicated that it expected capital expenditures to range between $4.0 and $4.5 billion and for net square footage to range between 12 and 14 million square feet for fiscal year 2015.  As a result of fewer new store openings in several key markets around the world, it now expects fiscal 2015 capital expenditures and net square footage additions to range between $3.8 and $4.1 billion and 9 to 10 million square feet, respectively.

    Walmart International will continue to invest in organic growth across its markets next year. Capital expenditures are expected to range between $3.7 and $4.2 billion. New store openings in fiscal 2016 are expected to add between 10 and 13 million square feet.

    "Our capital guidance for fiscal year 2016 reflects the actions we are taking to build a platform for sustainable growth in our five largest markets around the world," said Walmart International President and CEO David Cheesewright. "We are managing our portfolio to be a best-in-class operator through innovation, making compliance a competitive advantage and winning with an e-commerce strategy that offers a unique shopping experience for our customers across all channels."


    Global eCommerce details

    Walmart Global eCommerce President and CEO Neil Ashe outlined the progress made during the past year on the company’s e-commerce strategy.

    "We are delivering best in class e-commerce capabilities that we are combining with the assets of the world's largest retailer to engage with customers in new ways.  We have delivered the core components of our new global technology platform.  We are expanding our next generation fulfillment network to reach our customers fast and efficiently, and we're building new data capabilities to enhance our customer experience" said Ashe.

    Ashe announced that next year Walmart will build new online fulfillment centers in Georgia and Pennsylvania, each over 1 million square feet. These centers will be part of its next generation fulfillment network that includes dedicated online fulfillment centers, shared distribution centers, and ship-from-store locations that are all tied together by one of the biggest and most efficient transportation networks in the country.  Walmart will also add new fulfillment centers in Brazil and China.

    The company plans to spend capital of approximately $1.0 billion for e-commerce and digital initiatives this fiscal year and between $1.2 and $1.5 billion next year.


    About Walmart

    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 250 million customers and members visit our 11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries.  With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.


    Cautionary statement regarding forward-looking statements

    This release contains certain forward-looking statements that are intended to enjoy the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended.  These forward-looking statements include statements regarding the forecasts of Walmart's management of:

    • the capital expenditures to be made in fiscal year 2015 and fiscal year 2016 by Walmart in total, by each of its operating segments, by its operating segments in total, for global physical growth, for e-commerce and digital initiatives and for corporate and support;
    • the net retail square footage growth of Walmart for fiscal year 2015 and fiscal year 2016 in total and of each of its operating segments;
    • the total U.S. unit growth, the total unit growth of Walmart’s Walmart U.S. operating segment, the growth in supercenters and Neighborhood Market units within the Walmart U.S. operating segment and the total growth in units within Walmart’s Sam’s Club operating segment in fiscal year 2015 and fiscal year 2016; and
    • the percentage increase in Walmart’s total net sales in fiscal year 2015 and fiscal year 2016 and the dollar amount of net sales growth in fiscal year 2016.
    These forward-looking statements also include statements regarding management’s expectations, estimates and projections relating to:

    • Walmart accelerating its investment in e-commerce while moderating growth in large format stores;
    • changing the mix of capital expenditures made by Walmart in the future from the mix of capital expenditures in the past;
    • the way Walmart deploys capital continuing to evolve;
    • Walmart investing more heavily in e-commerce initiatives in the future while temporarily moderating global physical growth, particularly larger stores;
    • the growth of Walmart’s e-commerce sales in fiscal year 2016 and for the three-year period of fiscal years 2016 through 2018;
    • the amount of Walmart’s e-commerce sales in fiscal year 2015;
    • the company’s greatest investment of capital and in operating loss for the company’s e-commerce operations coming over the next 18 to 24 months and that investment starting to moderate in fiscal year 2018;
    • the company’s operating expenses growing at a rate somewhat faster than sales growth in fiscal year 2016;
    • the company’s operating income being flat to slightly down in fiscal year 2016;
    • the number of supercenters of the Walmart U.S. operating segment continuing to increase while the number of discount stores will continue to decrease as a result of conversions of discount stores into supercenters;
    • the number of new small format stores to be opened by the Walmart U.S. operating segment in fiscal year 2015;
    • the moderation of growth of the number of supercenters in the Walmart U.S. operating segment in fiscal year 2016;
    • the Walmart U.S. operating segment’s investment in Neighborhood Market units continuing to go forward;
    • the number of Sam’s Club units to be remodeled by the Sam’s Club operating segment in fiscal year 2015 and fiscal year 2016;
    • the Sam’s Club operating segment continuing to invest in membership and merchandise capabilities;
    • the Walmart International operating segment continuing to invest in organic growth in fiscal year 2016;
    • Walmart building and adding new e-commerce fulfillment centers; and
    • certain assumptions on which certain of such forward-looking statements are based.

    Such forward-looking statements are not guarantees of future results and subject to risks, uncertainties and other factors, domestically and internationally, including:

    • general economic conditions, including the overall sales environment in, economic conditions affecting, and business trends in, the specific markets in which the company operates;
    • competitive initiatives of other retailers and other competitive pressures;
    • the amount of inflation or deflation that occurs, both generally and in certain product categories;
    • consumer confidence, disposable income, needs, credit availability, spending levels, spending patterns and debt levels;
    • alignment of Walmart’s stores with customer needs;
    • changes in the level of public assistance payments;
    • customer acceptance of new initiatives and programs of the company and its operating segments;
    • consumer acceptance and use of Walmart’s various e-commerce websites;
    • customer traffic in Walmart’s stores and clubs and on Walmart’s e-commerce websites and average ticket size;
    • consumer acceptance of Walmart’s product offerings;
    • consumer acceptance of the company’s stores and merchandise in the markets in which new units are opened;
    • consumer shopping patterns in the markets in which the small store expansion of the Walmart U.S. operating segment occurs;
    • disruption in the seasonal buying patterns in one or more of the markets in which Walmart operates;
    • consumer demand for certain merchandise;
    • geo-political conditions and events;
    • weather conditions and events and their effects;
    • catastrophic events and natural disasters and their effects;
    • public health emergencies, civil unrest and disturbances and terrorist attacks and their effects;
    • the retail selling prices of gasoline and diesel fuel;
    • disruption of Walmart’s supply chain, including transport of goods from foreign suppliers;
    • trade restrictions;
    • the availability and cost of appropriate locations for new and relocated stores, clubs and other facilities;
    • local real estate, zoning, land use and other laws, ordinances, legal restrictions and initiatives that impose limitations on the company’s ability to build, relocate or expand stores in certain locations;
    • delays in the construction or opening of new, expanded or relocated units planned to be opened by certain dates;
    • availability of persons with the necessary skills and abilities necessary to meet Walmart’s needs for managing and staffing new units and conducting their operations;
    • availability of necessary utilities for new units;
    • availability of skilled construction labor in areas in which new units are proposed to be constructed or in which existing units are to be relocated, expanded or remodeled;
    • conditions and events affecting domestic and global financial and capital markets;
    • the unanticipated need to change Walmart’s objectives and plans; and
    • other risks.
    Walmart discusses certain of these matters more fully in its filings with the SEC, including its most recent Annual Report on Form 10-K (in which Walmart also discusses certain risk factors that may affect its operations and its results of operations), and the forward-looking statements in this release should be considered in conjunction with that Annual Report on Form 10-K, and together with all of Walmart's other filings made with the SEC through the date of this release, including its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements appearing in this release.  Because of these risks, uncertainties, factors, changes in facts, assumptions not being realized or other circumstances, Walmart's actual results may differ materially from anticipated results expressed or implied in these forward-looking statements.  The forward-looking statements appearing in this release are made on and as of the date of this release, and Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
    ]]>
    Walmart CEO Outlines Growth Strategy at Annual Meeting for the Investment Community http://es.news.walmart.com/news-archive/2014/10/15/walmart-ceo-outlines-growth-strategy-at-annual-meeting-for-the-investment-community Rogers, Ark., Oct. 15, 2014 - In opening remarks at the company’s 21st Annual Meeting for the Investment Community, Wal-Mart Stores, Inc. (NYSE: WMT) President and CEO Doug McMillon outlined the company’s growth strategy, including plans to invest in new capabilities and to continue improving the... Wed, 15 Oct 2014 13:15:00 GMT http://es.news.walmart.com/news-archive/2014/10/15/walmart-ceo-outlines-growth-strategy-at-annual-meeting-for-the-investment-community 2014-10-15T13:15:00Z Rogers, Ark., Oct. 15, 2014 - In opening remarks at the company’s 21st Annual Meeting for the Investment Community, Wal-Mart Stores, Inc. (NYSE: WMT) President and CEO Doug McMillon outlined the company's growth strategy, including plans to invest in new capabilities and to continue improving the customer experience at all Walmart stores. McMillon addressed how Walmart is well-positioned to meet the needs and preferences of an ever-evolving customer base.

    Improving on four key customer dimensions price, assortment, experience and access
    McMillon said, "Customers make their shopping decisions based on four key dimensions - price assortment, experience and access. What we can offer them, and how we compete across those dimensions, is changing.

    "Today, a customer has a desire for more items, more assortment, more choice than ever before," he continued. "We have tens of millions of customers visiting us weekly online and through our mobile apps looking for information, product options and then buying merchandise from us in stores and online. We're known for assortment and we will be in the future."

    Discussing price and experience, McMillon went on to say, "At Walmart, we serve value-conscious customers that come from all walks of life and all income levels. Price matters to our customers and it always will. As a company, being a low cost operator is in our DNA. This will never change and we will be the price leader, across a broad assortment, everywhere we operate. Experience is about customer service. From our associates in stores to our engineers and data scientists, we'll invent new ways to surprise and delight customers."

    McMillon noted that the ways customers access Walmart is being redefined. "There is a growing consensus that the future of retail is not just in-store and not just online. The winners in retail will be those that can put them together. Frankly, we think we're already doing the harder part. Locations matter because convenience matters. We have the stores, the associates, and the expertise in the physical world that others will need to build."

    McMillon continued, "To capture the upside of our strategic advantages, we need to develop a more seamless relationship with our customers. We won't just be a store on the street. We'll support our customers' lives, with them in the driver's seat, to save them money and time. We'll give customers the choices they want and need by integrating digital and physical retail. As we have many times before, we'll exceed our customers' expectations, and as a result, we will win the new era of retail."

    McMillon also spoke about the state of the company: "We have an important purpose - saving people money so they can live better. Our company is built on a foundation of strong values and integrity. Compliance continues to be a priority for us and a key to building trust with our customers and other stakeholders. However, we go beyond compliance to make a difference on sustainability and other big issues. Our stores are part of their communities. We fight hunger and provide disaster relief while creating opportunities for our associates. We are a company where you can go as far as your hard work will take you. Last year, more than 170,000 people got a promotion in our U.S. business."

    Enterprise-wide approach  
    McMillon said leadership fully recognizes how quickly customers’ expectations are changing, which requires Walmart to think and act differently.

    "In the past, we've tended to roll up our plans from markets and segments, but this year we've started with an enterprise-wide approach. The internet, mobile, data and technology present opportunities across the world and across our businesses to better serve the changing customer," he said. "We've taken a fresh look at where we want to play - what businesses, markets, formats, and services we need and how to win - what our customer value proposition should be.

    "Our strategy will guide our approach to capital discipline," McMillon continued. "We will change the mix of our capital spend through reductions in areas we have invested in historically to fund investments in new growth opportunities. Specifically, we will moderate the growth of investments in stores, and we will increase our investments in e-commerce.

    Winning now
    McMillon outlined what the company is doing to win now, noting that improving the company’s short-term performance is a priority across all of Walmart’s segments and markets.

    "Our supercenters in the U.S. should be delivering positive comps consistently. Our combination of pricing, in stock, service levels and merchant skills will generate improved performance in our supercenters. Our Neighborhood Markets continue to be a bright spot in terms of comp sales."

    He said Sam's Club is thinking creatively about the future of its business and has made some changes with membership rewards and credit offerings designed to strengthen its position and performance. In e-commerce, Walmart is continuing investment in its new technology platform, rolling it out to customers, continuing to build its next generation fulfillment network and expanding assortment.
     
    McMillon highlighted three key points that will drive the business going forward:
    • "First, we're going to position ourselves to do a better job serving customers. We can create a next generation customer proposition through the combination of what we do with price, assortment, access and experience. We will save them money and time.

    • "Second, our priority is growth. Driving demand is the only sustainable way to deliver returns over time.

    • “Finally, we’ll manage capital in a disciplined, thoughtful manner.”

    About Walmart

    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 250 million customers and members visit our 11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.


    Cautionary Statement Regarding Forward Looking Statements


    This release contains certain forward-looking statements that are intended to enjoy the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding the expectations of Walmart's management for Walmart, including:

    • being the price leader across a broad assortment everywhere the company operates;

    • changing the mix of the company’s spend through reductions in areas that the company has historically invested in so it can fund new growth opportunities;

    • moderating the company’s growth of investments in stores;

    • increasing its investments in e-commerce;

    • the combination of pricing, in stock, service levels and merchants’ skills generating improved performance in the company’s supercenters in the U.S.; and

    • managing the company’s capital in a disciplined, thoughtful matter. 

    Such forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and other factors, domestically and internationally, including:

    • business trends in the specific markets in which Walmart operates;

    • competitive initiatives of other retailers and other competitive pressures;

    • the amount of inflation or deflation that occurs, both generally and in certain product categories;

    • the cost of goods to Walmart and the other costs and expenses Walmart incurs relating to the sale of goods in its stores and clubs;

    • consumer disposable income, needs, spending levels and spending patterns;

    • alignment of Walmart’s stores with customer needs;

    • customer acceptance of new initiatives and programs of the company, including those with respect to the supercenters operated by the company’s Walmart U.S. operating segment;

    • consumer acceptance of and customer traffic on and use of Walmart’s various e-commerce websites;

    • customer traffic and average ticket size in the supercenters operated by the Walmart U.S. operating segment;

    • consumer acceptance of product offerings in the supercenters operated by the Walmart U.S. operating segment and the company’s e-commerce websites;

    • consumer demand for certain merchandise;

    • the availability to Walmart of the merchandise it needs to maintain desirable in stock levels in the supercenters operated by the Walmart U.S. operating segment;

    • availability of persons with the necessary skills and abilities necessary to meet Walmart’s needs for managing and staffing the supercenters operated by the Walmart U.S. operating segment and the company’s e-commerce operations;

    • availability to Walmart of attractive e-commerce investment opportunities;

    • the unanticipated need to change Walmart’s objectives and plans; and

    • other risks.
    Walmart discusses certain of these matters more fully in its filings with the SEC, including its most recent Annual Report on Form 10-K (in which Walmart also discusses certain risk factors that may affect its operations and its results of operations), and the forward-looking statements in this release should be considered in conjunction with that Annual Report on Form 10-K, and together with all of Walmart's other filings made with the SEC through the date of this release, including its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements appearing in this release. Because of these risks, uncertainties, factors, changes in facts, assumptions not being realized or other circumstances, Walmart's actual results may differ materially from anticipated results expressed or implied in these forward-looking statements. The forward-looking statements appearing in this release are made on and 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. announces FY 2016 earnings calendar, provides agenda for 21st Annual Meeting for the Investment Community http://es.news.walmart.com/news-archive/2014/10/13/wal-mart-stores-inc-announces-fy-2016-earnings-calendar-provides-agenda-for-21st-annual-meeting-for-the-investment-community BENTONVILLE, Ark., Oct. 13, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today provided its earnings calendar for fiscal year 2016. The dates are as follows:First quarter - Tuesday, May 19, 2015Second quarter - Tuesday, August 18, 2015Third quarter - Tuesday, November 17, 2015Fourth quarter - Thursd... Mon, 13 Oct 2014 13:15:00 GMT http://es.news.walmart.com/news-archive/2014/10/13/wal-mart-stores-inc-announces-fy-2016-earnings-calendar-provides-agenda-for-21st-annual-meeting-for-the-investment-community 2014-10-13T13:15:00Z BENTONVILLE, Ark., Oct. 13, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today provided its earnings calendar for fiscal year 2016. The dates are as follows:

    • First quarter – Tuesday, May 19, 2015
    • Second quarter – Tuesday, August 18, 2015
    • Third quarter – Tuesday, November 17, 2015
    • Fourth quarter – Thursday, February 18, 2016
    In addition, Walmart will webcast its 21st Annual Meeting for the Investment Community on Wed., Oct. 15 from approximately 7:45 a.m. to 3 p.m. CDT.  At this meeting, the company will present strategic plans and capital expenditure plans for fiscal year 2016.  The video webcast will include presentations and question and answer sessions on all three operating segments -- Walmart U.S., Walmart International and Sam’s Club -- as well as Global eCommerce.  President and CEO Doug McMillon will kick off the meeting with an overview of the company’s enterprise strategy for next fiscal year.

    A detailed agenda can be found on the investor relations section of the corporate website or by clicking here

    A live webcast of the presentations (both video and slides) will be available through the link provided on the events portion of our corporate site at http://news.walmart.com/events/.  It will be archived for replay on the company’s website.

    About Walmart
    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 250 million customers and members visit our 11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries.  With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.

     
    ###

    ]]>
    Instagram CEO and Co-Founder Kevin Systrom Joins Walmart's Board of Directors http://es.news.walmart.com/news-archive/2014/09/29/instagram-ceo-and-co-founder-kevin-systrom-joins-walmarts-board-of-directors BENTONVILLE, Ark., Sept. 29, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its Board of Directors has appointed Kevin Systrom, an entrepreneur, software engineer and co-founder of photo-sharing service Instagram, as a new member of the company's Board, effective Sept. 26. Systrom... Mon, 29 Sep 2014 12:10:00 GMT http://es.news.walmart.com/news-archive/2014/09/29/instagram-ceo-and-co-founder-kevin-systrom-joins-walmarts-board-of-directors 2014-09-29T12:10:00Z BENTONVILLE, Ark., Sept. 29, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its Board of Directors has appointed Kevin Systrom, an entrepreneur, software engineer and co-founder of photo-sharing service Instagram, as a new member of the company’s Board, effective Sept. 26. Systrom became the 15th member of the Board and will also serve as a member of the company’s Technology and eCommerce Committee and its Compensation, Nominating and Governance Committee (CNGC).

    "Kevin's entrepreneurial background and his technical and digital expertise will be invaluable as we further connect with customers and deploy new capabilities through e-commerce and mobile channels," said Walmart Chairman Rob Walton. "Walmart is investing in e-commerce capabilities through talent, technology and fulfillment. Kevin's passion and deep knowledge of social media align with our focus to engage customers through our digital and physical channels." 

    "Walmart has had a profound impact as a global leader in retail," Systrom said. "It's an honor to join the Walmart Board and have an opportunity to help provide more convenient and flexible ways for people to shop."

    Systrom, 30, is best known as CEO and co-founder of Instagram, the photo-and-video sharing social networking service. Founded in 2010, Instagram was acquired by Facebook in August 2012.  Systrom is currently CEO of Instagram, where he is responsible for its day-to-day operations and has overseen its growth to more than 200 million monthly active accounts.

    A native of Massachusetts, Systrom holds a B.S. in management science and engineering from Stanford University. Since 2011, Systrom has consistently been ranked in lists such as Fortune's 40-under-40 and TIME’s 100 most influential people

    About Walmart

    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 250 million customers and members visit our 11,053 stores under 71 banners in 27 countries and ecommerce websites in 11 countries. With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.
    ]]>
    Walmart Reports FY 15 Q2 EPS of $1.21; Company Added More Than $3.2 Billion in Net Sales http://es.news.walmart.com/news-archive/investors/2014/08/14/walmart-reports-fy-15-q2-eps-of-121-company-added-more-than-32-billion-in-net-sales Wal-Mart Stores, Inc. (Walmart) reported second quarter diluted earnings per share from continuing operations (EPS) of $1.21, compared to last year's $1.23.1 Consolidated net sales increased more than $3.2 billion, or 2.8 percent, to $119.3 billion. Walmart U.S. comp sales were flat for the 1... Thu, 14 Aug 2014 12:03:00 GMT http://es.news.walmart.com/news-archive/investors/2014/08/14/walmart-reports-fy-15-q2-eps-of-121-company-added-more-than-32-billion-in-net-sales 2014-08-14T12:03:00Z
    • Wal-Mart Stores, Inc. (Walmart) reported second quarter diluted earnings per share from continuing operations (EPS) of $1.21, compared to last year's $1.23.1
    • Consolidated net sales increased more than $3.2 billion, or 2.8 percent, to $119.3 billion.
    • Walmart U.S. comp sales were flat for the 13-week period ended Aug. 1, 2014. Comp sales for the Neighborhood Market format rose approximately 5.6 percent. Walmart U.S. net sales increased $1.9 billion, or 2.7 percent, to more than $70 billion.
    • Walmart International grew net sales 3.1 percent to $33.9 billion. On a constant currency basis,2 net sales would have increased 5.3 percent. Currency exchange rate fluctuations negatively impacted net sales by approximately $700 million.
    • Sam's Club comp sales, without fuel,2 were flat for the 13-week period ended Aug. 1, 2014. Sam's Club delivered 11.9 percent membership income growth for the quarter.
    • E-commerce sales globally increased approximately 24 percent on a constant currency basis, with double-digit growth in the U.S., U.K., China and Brazil.
    • Consolidated operating income was $6.7 billion, a decrease of 0.5 percent. Walmart International grew operating income 8.0 percent, more than twice the rate of sales growth.
    • Walmart updated full year EPS guidance to a range of $4.90 to $5.15, from a previous range of $5.10 to $5.45. This range includes third quarter EPS guidance of $1.10 to $1.20. The new full year guidance reflects incremental investments in e-commerce and higher U.S. health-care costs than previously anticipated. This guidance also assumes the effective tax rate will be around 34 percent for the third quarter. The annual effective tax rate is projected to be between 32 and 34 percent. The actual rate will depend on a number of factors, including our performance, discrete items and pending U.S. Congressional actions regarding the extension of certain tax legislation.
    1 This amount excludes $0.01 per share associated with the operations of Vips, which have been reclassified as discontinued operations.
    2 See additional information at the end of this release regarding non-GAAP financial measures.



    BENTONVILLE, Ark.--(BUSINESS WIRE)--Aug. 14, 2014-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the second quarter ended July 31, 2014.

    Consolidated net sales for the second quarter were $119.3 billion, an increase of 2.8 percent over last year. This quarter included the negative impact of $696 million from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 3.4 percent to $120.0 billion. Membership and other income increased 8.2 percent versus last year. Total revenue was $120.1 billion, an increase of approximately $3.3 billion, or 2.8 percent.

    Consolidated net income attributable to Walmart was $4.1 billion, an increase of 0.6 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.21, or 1.6 percent below last year’s $1.23.2

    Solid EPS performance
    “I’m pleased with our solid earnings per share performance,” said Doug McMillon, Wal-Mart Stores, Inc. president and CEO. "As it relates to the positives from the quarter, I'm encouraged by the performance of our International business, our Neighborhood Market sales in the U.S. and by our e-commerce growth. As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart U.S. and Sam's Club, but both reported flat comp sales. Stronger sales in the U.S. businesses would've also helped our profit performance."

    Walmart is continuing to invest in enhancing its e-commerce capabilities and McMillon pointed out the need to move quickly to serve customers more effectively.

    "We see opportunities to improve in merchandising, pricing and store level service in our supercenters, and we are working to close those gaps," added McMillon. "Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we're working to deliver that for them around the world."

    Returns
    The company paid $1.55 billion in dividends and repurchased approximately 4 million shares for $307 million in the second quarter. In total, the company returned approximately $1.9 billion to shareholders through dividends and share repurchases.

    Return on investment1 (ROI) for the trailing 12-months ended July 31, 2014 was 16.6 percent, compared to 17.9 percent for the prior comparable period. The decrease in ROI was primarily due to a decrease in operating income, as well as our continued capital investment in store growth and e-commerce.

    Free cash flow1 was $6.8 billion for the six months ended July 31, 2014, compared to $5.2 billion in the prior year. The increase in free cash flow was primarily due to the timing of income tax payments and capital expenditures.

    1 See additional information at the end of this release regarding non-GAAP financial measures.
    2 This amount excludes $0.01 per share associated with the operations of Vips, which have been reclassified as discontinued operations.

    Guidance
    The company's financial guidance reflects a view of global economic trends and assumes currency exchange rates remain at current levels. Forecasted earnings per share from continuing operations for the full year are expected to range between $4.90 and $5.15, versus previous guidance of $5.10 to $5.45. This assumes a range for third quarter EPS of $1.10 to $1.20.

    "Our guidance includes incremental investments in e-commerce and headwinds from higher health-care costs in the U.S. than previously estimated. This guidance also assumes the effective tax rate will be around 34 percent for the third quarter. The annual effective tax rate is projected to be between 32 and 34 percent. The actual rate will depend on a number of factors, including our performance, discrete items and pending U.S. Congressional actions regarding the extension of certain tax legislation," said Charles Holley, executive vice president and chief financial officer.

    U.S. comparable store sales results
    The company reported U.S. comparable store sales based on its 13-week and 26-week retail calendar for the periods ended Aug. 1, 2014 and July 26, 2013 as follows:

                       
    Without Fuel With Fuel Fuel Impact
    13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
    8/1/2014     7/26/2013 8/1/2014     7/26/2013 8/1/2014     7/26/2013
    Walmart U.S. 0.0 %     -0.3 % 0.0 %     -0.3 % 0.0 %     0.0 %
    Sam’s Club 0.0 %     1.7 % 0.5 %     1.7 % 0.5 %     0.0 %
    Total U.S. 0.0 %     0.0 % 0.1 %     0.1 % 0.1 %     0.1 %
         
    Without Fuel With Fuel Fuel Impact
    26 Weeks Ended 26 Weeks Ended 26 Weeks Ended
    8/1/2014     7/26/2013 8/1/2014     7/26/2013 8/1/2014     7/26/2013
    Walmart U.S. 0.0 % -0.8 % 0.0 % -0.8 % 0.0 % 0.0 %
    Sam’s Club -0.3 %     0.9 % -0.2 %     0.8 % 0.1 %     -0.1 %
    Total U.S. -0.1 %     -0.6 % -0.1 %     -0.6 % 0.0 %     0.0 %
     
    During the 13-week period, Walmart U.S. comp traffic decreased 1.1 percent, while average ticket increased 1.1 percent. E-commerce sales positively impacted comp sales by approximately 0.3 percent for the 13-week period.

    In the 13-week period, excluding fuel,1 Sam’s Club comp traffic was up 0.3 percent, and average ticket was down 0.3 percent. E-commerce sales positively impacted comp sales by approximately 0.3 percent for the 13-week period.

    The company’s e-commerce sales impact includes those sales initiated through the company’s websites and fulfilled through the company’s dedicated e-commerce distribution facilities, as well as an estimate for sales initiated online, but fulfilled through the company’s stores and clubs.

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

    Net sales results
    Net sales, including fuel, were as follows:

          Three months ended     Six Months Ended
    July 31, July 31,
    (dollars in billions) 2014     2013     Percent

    Change

    2014     2013     Percent

    Change

    Walmart U.S. $ 70.601     $ 68.728     2.7 % $ 138.453     $ 135.281     2.3 %
    Walmart International 33.872 32.841 3.1 % 66.296 65.730 0.9 %
    Sam’s Club   14.863       14.532     2.3 %   28.754       28.403     1.2 %
    Consolidated $ 119.336     $ 116.101     2.8 % $ 233.503     $ 229.414     1.8 %
     
    The following explanations provide additional context to the above table.

    • Excluding the impact of currency exchange rate fluctuations, Walmart International’s net sales for the quarter would have been $34.6 billion, an increase of 5.3 percent over last year. Currency exchange rate fluctuations negatively impacted net sales by $696 million during the quarter.
    • Sam’s Club net sales, excluding fuel,1 were $13.0 billion for the quarter, an increase of 1.7 percent over last year.
    • Excluding the impact of currency exchange rate fluctuations,1 consolidated net sales would have increased 3.4 percent during the quarter to $120.0 billion.
    “We delivered net sales growth of $1.9 billion in the second quarter,” said Greg Foran, Walmart U.S. president and CEO. "Our e-commerce business, including store-fulfilled sales, delivered double-digit sales growth."

    Segment operating income
    Segment operating income was as follows:

          Three months ended     Six Months Ended
    July 31, July 31,
    (dollars in billions) 2014     2013     Percent

    Change

    2014     2013     Percent

    Change

    Walmart U.S. $ 5.252     $ 5.383     -2.4 % $ 10.227     $ 10.580     -3.3 %
    Walmart International 1.489 1.379 8.0 % 2.691 2.542 5.9 %
    Sam's Club   0.494       0.518     -4.6 %   0.973       1.008     -3.5 %
    Sam's Club (excluding fuel)   0.466       0.519     -10.2 %   0.943       1.003     -6.0 %
     
    “We remain focused on price investment across all our markets and expect to continue driving improved comp performance,” said David Cheesewright, Walmart International president and CEO. “I am pleased with the trends in many of our markets, which were driven by a continued focus on being the lowest cost operator.”

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

    U.S. comparable store sales review and guidance
    "Neighborhood Markets continued to perform well and delivered an approximate 5.6 percent sales comp for the period," added Foran. "Comp store traffic grew 4.1 percent. During the second quarter, we opened 22 Neighborhood Markets and remain on track to deliver 180 to 200 new units for the year."

    For the 13-week period ending Oct. 31, 2014, Walmart U.S. expects comp store sales to be relatively flat. Last year, Walmart's comp sales declined 0.3 percent for the 13-week period ended Oct. 25, 2013.

    “Our top priority at Sam’s Club remains growth -- growing our member base and growing sales,” said Rosalind Brewer, Sam's Club president and CEO. "We're taking steps to increase the value of membership through investments in Plus member cash rewards and the cash back Mastercard. It’s still early, but member response has been positive.”

    Sam’s Club expects comp sales, excluding fuel,1 for the 13-week period ending Oct. 31, 2014 to be slightly positive. Last year comp sales, excluding fuel,1 increased 1.1 percent for the 13-week period ended Oct. 25, 2013.

    Walmart U.S. and Sam’s Club will report comparable sales for the 13-week period ending Oct. 31, on Nov. 13, when the company reports third quarter results.

    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 250 million customers and members visit our 11,053 stores under 71 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2014 sales of over $473 billion, Walmart employs approximately 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.

    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 and related information can be accessed via webcast by visiting the investor information area on the company’s website at www.stock.walmart.com. 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 U.S. and International operations are available for download at 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 forecast of the company’s diluted earnings per share from continuing operations attributable to Walmart for the fiscal year ending Jan. 31, 2015 and the three months ending Oct. 31, 2014, the company’s full-year effective tax rate for the fiscal year ending Jan. 31, 2015, the company’s effective tax rate for the three months ended Oct. 31, 2014, and the comparable store sales of the Walmart U.S. segment and the comparable club sales, excluding fuel, of the Sam’s Club segment for the 13-week period from Aug. 2, 2014 through Oct. 31, 2014 (and assumptions underlying those forecasts), statements regarding management’s expectations that the company’s Walmart U.S. operating segment will open a certain number of Neighborhood Market units during the fiscal year ending Jan. 31, 2015, the company’s Walmart International operating segment will continue to drive comparable store sales performance and that the company’s Sam’s Club operating segment has the objectives of growth in member base and sales and other statements concerning Walmart’s objectives and plans 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," "assumes," "expect," "expected," "expects," "forecasted," "guidance," "on track to deliver," "priority," "projected," and "will depend," 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 the company operates; competitive initiatives of other retailers and competitive pressures; the amount of inflation or deflation that occurs, both generally and in certain product categories; consumer confidence, disposable income, credit availability, spending levels, spending patterns and debt levels; consumer demand for certain merchandise; customer traffic in the company's stores and clubs and on the company's e-commerce websites and average ticket size; consumer acceptance of the company's merchandise offerings in its stores and clubs and on the company's e-commerce websites; consumer acceptance of the company's stores and merchandise in the markets in which new units are opened; consumer shopping patterns in the markets in which the small store expansion of the Walmart U.S. operating segment occurs; the disruption of seasonal buying patterns in the United States and other markets; geo-political conditions and events; changes in the level of public assistance payments; customer’s acceptance of new initiatives and programs of the company and its operating segments; weather conditions and events and their effects; catastrophic events and natural disasters and their effects; 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 health-care and other benefits; the number of associates enrolling in Walmart’s health-care plans; the availability and cost of appropriate locations for new or relocated units; local real estate, zoning, land use and other laws, ordinances, legal restrictions and initiatives that may prevent the company from building, relocating, or expanding, or that impose limitations on the company’s ability to build, relocate or expand, stores in certain locations; availability of persons with the necessary skills and abilities necessary to meet the company’s needs for managing and staffing new units and conducting their operations; availability of necessary utilities for new units; availability of skilled labor; delays in construction and other delays in the opening of new, expanded or relocated units planned to be opened by certain dates; casualty and other insurance costs; accident-related costs; 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-related matters, including enhancements to Walmart’s compliance program and ongoing investigations; currency exchange rate fluctuations; changes in market interest rates; conditions and events affecting domestic and global financial and capital markets; factors that may affect the company’s effective tax rate, including the company’s performance, changes in the company’s assessment of certain tax contingencies, valuation allowances, changes in law, including the outcome of pending U.S. Congressional actions regarding the extension of certain tax legislation, outcomes of administrative audits, the impact of discrete items, and the mix of earnings among the company’s U.S. and international operations; changes in generally accepted accounting principles; unanticipated changes in accounting estimates or judgments; 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 Six Months Ended
    SUBJECT TO RECLASSIFICATION July 31, July 31,
    (Dollars in millions, except share data) 2014 2013 Percent

    Change

    2014 2013 Percent

    Change

    Revenues:
    Net sales $ 119,336 $ 116,101 2.8 % $ 233,503 $ 229,414 1.8 %
    Membership and other income   789     729   8.2 %   1,582     1,486   6.5 %
    Total revenues 120,125 116,830 2.8 % 235,085 230,900 1.8 %
    Costs and expenses:
    Cost of sales 90,010 87,420 3.0 % 176,724 173,411 1.9 %
    Operating, selling, general and administrative expenses   23,375     22,633   3.3 %   45,428     44,274   2.6 %
    Operating income 6,740 6,777 (0.5 )% 12,933 13,215 (2.1 )%
    Interest:
    Debt 509 522 -2.5 % 1,040 1,029 1.1 %
    Capital leases 61 67 (9.0 )% 122 133 (8.3 )%
    Interest income   (32 )   (37 ) (13.5 )%   (56 )   (80 ) (30.0 )%
    Interest, net   538     552   -2.5 %   1,106     1,082   2.2 %
    Income from continuing operations before income taxes 6,202 6,225 (0.4 )% 11,827 12,133 (2.5 )%
    Provision for income taxes   2,113     2,020   4.6 %   4,027     3,996   0.8 %
    Income from continuing operations 4,089 4,205 (2.8 )% 7,800 8,137 (4.1 )%
    Income from discontinued operations, net of income taxes   270     10   2,600.0 %   285     23   1,139.1 %
    Consolidated net income 4,359 4,215 3.4 % 8,085 8,160 (0.9 )%
    Less consolidated net income attributable to noncontrolling interest   (266 )   (146 ) 82.2 %   (399 )   (307 ) 30.0 %
    Consolidated net income attributable to Walmart $ 4,093   $ 4,069   0.6 % $ 7,686   $ 7,853   (2.1 )%
     
    Income from continuing operations attributable to Walmart:
    Income from continuing operations $ 4,089 $ 4,205 (2.8 )% $ 7,800 $ 8,137 (4.1 )%
    Less income from continuing operations attributable to noncontrolling interest   (166 )   (143 ) 16.1 %   (295 )   (300 ) (1.7 )%
    Income from continuing operations attributable to Walmart $ 3,923   $ 4,062   (3.4 )% $ 7,505   $ 7,837   (4.2 )%
     
     
    Basic net income per common share:
    Basic income per common share from continuing operations attributable to Walmart $ 1.22 $ 1.24 (1.6 )% $ 2.32 $ 2.38 (2.5 )%
    Basic income per common share from discontinued operations attributable to Walmart   0.05     0.01   400.0 %   0.06     0.01   500.0 %
    Basic net income per common share attributable to Walmart $ 1.27   $ 1.25   1.6 % $ 2.38   $ 2.39   (0.4 )%
     
    Diluted net income per common share:
    Diluted income per common share from continuing operations attributable to Walmart $ 1.21 $ 1.23 (1.6 )% $ 2.31 $ 2.37 (2.5 )%
    Diluted income per common share from discontinued operations attributable to Walmart   0.05     0.01   400.0 %   0.06     0.01   500.0 %
    Diluted net income per common share attributable to Walmart $ 1.26   $ 1.24   1.6 % $ 2.37   $ 2.38   (0.4 )%
     
    Weighted-average common shares outstanding:
    Basic 3,230 3,278 3,231 3,290
    Diluted 3,241 3,291 3,244 3,305
     
    Dividends declared per common share $ 1.92 $ 1.88
     
     
     
     
     
     
    Wal-Mart Stores, Inc. Condensed Consolidated Balance Sheets

    (Unaudited)

                 
     
    SUBJECT TO RECLASSIFICATION
    (Dollars in millions) July 31, January 31, July 31,
    ASSETS 2014 2014   2013
    Current assets:
    Cash and cash equivalents $ 6,184 $ 7,281 $ 9,016
    Receivables, net 6,146 6,677 5,996
    Inventories 45,451 44,858 42,793
    Prepaid expenses and other 1,851 1,909 2,197
    Current assets of discontinued operations       460      
    Total current assets 59,632 61,185 60,002
    Property and equipment:
    Property and equipment 177,975 173,089 168,086
    Less accumulated depreciation   (61,709 )   (57,725 )   (54,724 )
    Property and equipment, net 116,266 115,364 113,362
    Property under capital leases:
    Property under capital leases 5,549 5,589 5,763
    Less accumulated amortization   (3,092 )   (3,046 )   (3,131 )
    Property under capital leases, net 2,457 2,543 2,632
     
    Goodwill 19,758 19,510 19,280
    Other assets and deferred charges   5,872     6,149     5,693  
    Total assets $ 203,985   $ 204,751   $ 200,969  
     
    LIABILITIES AND EQUITY
    Current liabilities:
    Short-term borrowings $ 3,516 $ 7,670 $ 8,639
    Accounts payable 36,828 37,415 36,701
    Dividends payable 3,100 3,141
    Accrued liabilities 18,237 18,793 18,616
    Accrued income taxes 511 966 116
    Long-term debt due within one year 4,659 4,103 4,692
    Obligations under capital leases due within one year 301 309 309
    Current liabilities of discontinued operations       89      
    Total current liabilities 67,152 69,345 72,214
     
    Long-term debt 43,004 41,771 40,678
    Long-term obligations under capital leases 2,695 2,788 2,907
    Deferred income taxes and other 8,311 8,017 7,989
    Redeemable noncontrolling interest 1,491 495
     
    Commitments and contingencies
     
    Equity:
    Common stock 323 323 327
    Capital in excess of par value 2,208 2,362 3,432
    Retained earnings 77,172 76,566 70,791
    Accumulated other comprehensive income (loss)   (1,957 )   (2,996 )   (2,889 )
    Total Walmart shareholders’ equity 77,746 76,255 71,661
    Nonredeemable noncontrolling interest   5,077     5,084     5,025  
    Total equity   82,823     81,339     76,686  
    Total liabilities and equity $ 203,985   $ 204,751   $ 200,969  
     
     
     
     
     
     
    Wal-Mart Stores, Inc. Condensed Consolidated Statements of Cash Flows

    (Unaudited)

             
     
    Six Months Ended
    SUBJECT TO RECLASSIFICATION July 31,
    (Dollars in millions) 2014 2013
    Cash flows from operating activities:
    Consolidated net income $ 8,085 $ 8,160
    (Income) loss from discontinued operations, net of income taxes   (285 )   (23 )
    Income from continuing operations 7,800 8,137
    Adjustments to reconcile consolidated net income to net cash provided by operating activities:
    Depreciation and amortization 4,527 4,402
    Deferred income taxes 79 475
    Other operating activities 667 (166 )
    Changes in certain assets and liabilities:
    Receivables, net 704 445
    Inventories (403 ) 569
    Accounts payable (420 ) (324 )
    Accrued liabilities (596 ) (209 )
    Accrued income taxes   (458 )   (2,078 )
    Net cash provided by operating activities 11,900 11,251
     
    Cash flows from investing activities:
    Payments for property and equipment (5,113 ) (6,066 )
    Proceeds from the disposal of property and equipment 90 112
    Proceeds from disposal of certain operations 671
    Other investing activities   12     (83 )
    Net cash used in investing activities (4,340 ) (6,037 )
     
    Cash flows from financing activities:
    Net change in short-term borrowings (4,130 ) 1,869
    Proceeds from issuance of long-term debt 4,565 5,326
    Payments of long-term debt (2,868 ) (3,386 )
    Dividends paid (3,094 ) (3,092 )
    Purchase of Company stock (933 ) (4,096 )
    Dividends paid to noncontrolling interest (339 ) (358 )
    Purchase of noncontrolling interest (1,720 ) (152 )
    Other financing activities   (236 )   13  
    Net cash used in financing activities (8,755 ) (3,876 )
     
    Effect of exchange rates on cash and cash equivalents   98     (103 )
     
    Net increase (decrease) in cash and cash equivalents (1,097 ) 1,235
    Cash and cash equivalents at beginning of year   7,281     7,781  
    Cash and cash equivalents at end of period $ 6,184   $ 9,016  
     
     
     
     
     
     
    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 possible short-term impacts.

    ROI was 16.6 percent and 17.9 percent for the trailing 12 months ended July 31, 2014 and 2013, respectively. The decline in ROI was primarily due to the decrease in operating income, as well as our continued capital investment in store growth and e-commerce.

    We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing 12 months 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 average accumulated depreciation and average amortization, less average accounts payable and average accrued liabilities for that period, plus a rent factor equal to the rent for the fiscal year or trailing 12 months 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 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. For example, we exclude the impact of depreciation and amortization from our reported operating income in calculating the numerator of our calculation of ROI. In addition, we include 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 generally accepted accounting principles ("GAAP") that is the most directly comparable financial measure to our calculation of ROI. ROI differs from ROA (which is consolidated income from continuing operations for the period divided by average total assets of continuing operations for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets of continuing operations 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 management to calculate our ROI may differ from the methods used by other companies 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) 2014     2013
    CALCULATION OF RETURN ON INVESTMENT
    Numerator
    Operating income $ 26,590 $ 27,888
    + Interest income 95 177
    + Depreciation and amortization 8,995 8,659
    + Rent   2,896     2,642  
    Adjusted operating income $ 38,576   $ 39,366  
     
    Denominator
    Average total assets of continuing operations1 $ 202,477 $ 198,315
    + Average accumulated depreciation and amortization1

    61,328 54,993
    - Average accounts payable1 36,765 36,384
    - Average accrued liabilities1 18,427 18,197
    + Rent x 8   23,168     21,136  
    Average invested capital $ 231,781   $ 219,863  
    Return on investment (ROI)   16.6 %   17.9 %
     
    CALCULATION OF RETURN ON ASSETS
    Numerator
    Income from continuing operations $ 16,214   $ 17,809  
    Denominator
    Average total assets of continuing operations1 $ 202,477   $ 198,315  
    Return on assets (ROA)   8.0 %   9.0 %
     
          As of July 31,
    Certain Balance Sheet Data 2014 2013 2012
    Total assets of continuing operations $ 203,985 $ 200,969 $ 195,661
    Accumulated depreciation and amortization 64,801 57,855 52,131
    Accounts payable 36,828 36,701 36,067
    Accrued liabilities 18,237 18,616 17,777
     
    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 $6.8 billion and $5.2 billion for the six months ended July 31, 2014 and 2013, respectively. The increase in free cash flow was primarily due to the timing of income tax payments and capital expenditures.

    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 income from continuing operations 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 Walmart's management to calculate our free cash flow may differ from the methods used by other companies 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) 2014     2013
    Net cash provided by operating activities $ 11,900 $ 11,251
    Payments for property and equipment   (5,113 )   (6,066 )
    Free cash flow $ 6,787   $ 5,185  
     
    Net cash used in investing activities1 $ (4,340 ) $ (6,037 )
    Net cash used in financing activities $ (8,755 ) $ (3,876 )
     
    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, if any, 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, 2014.

     
          Three Months Ended July 31, 2014     Six Months Ended July 31, 2014
    International     Consolidated International     Consolidated
    (Dollars in millions) 2014     Percent

    Change

    2014     Percent

    Change

    2014     Percent

    Change

    2014     Percent

    Change

    Net sales:                
    As reported $ 33,872 3.1 % $ 119,336 2.8 % $ 66,296 0.9 % $ 233,503 1.8 %
    Currency exchange rate fluctuations1   696         696         2,272         2,272      
    34,568 120,032 68,568 235,775
    Net sales from acquisitions                                
    Constant currency net sales $ 34,568     5.3 % $ 120,032     3.4 % $ 68,568     4.3 % $ 235,775     2.8 %
     
    Operating income:
    As reported $ 1,489 8.0 % $ 6,740 (0.5 )% $ 2,691 5.9 % $ 12,933 (2.1 )%
    Currency exchange rate fluctuations1   18         18         41         41      
    1,507 6,758 2,732 12,974
    Operating income (loss) from acquisitions                                
    Constant currency operating income $ 1,507     9.3 % $ 6,758     (0.3 )% $ 2,732     7.5 % $ 12,974     (1.8 )%
     
    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 13-week and 26-week periods ended Aug. 1, 2014 and Jul. 26, 2013, the projected comparable club sales of Sam’s Club for the 13 weeks ending Oct. 31, 2014 and the comparable club sales of Sam’s Club for the 13 weeks ended Oct. 25, 2013, in each case calculated by excluding Sam’s Club’s fuel sales for such periods (the “Sam’s Club Comparable Sales Measures”);
    • the net sales of Sam’s Club for the three months ended Jul. 31, 2014 and the percentage increase in the net sales of Sam’s Club for the three months ended Jul. 31, 2014 over the net sales of Sam’s Club for the three months ended Jul. 31, 2013 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 and six months ended Jul. 31, 2014 and 2013 and the percentage decrease in the segment operating income of Sam’s Club for the three and six months ended Jul. 31, 2014 over the segment operating income of Sam’s Club for the three and six months ended Jul. 31, 2013, in each case calculated by excluding Sam’s Club’s fuel sales for the relevant period (collectively with the financial measures described in the immediately preceding bullet point, the “Sam’s Club Measures”).
    We believe the Sam's Club comparable club sales for the historical periods for which the corresponding Sam's Club Comparable Sales Measures are presented calculated by including fuel sales are the financial measures computed in accordance with GAAP most directly comparable to the respective Sam's Club Comparable Sales Measures. We believe Sam's Club's projected comparable club sales for the 13-week period ending Oct. 31, 2014 calculated by including fuel sales 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-week period ending Oct. 31, 2014 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 Sam's Club Measures.

    We believe that the presentation of the Sam’s Club 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.



    Source: Wal-Mart Stores, Inc.

    Wal-Mart Stores, Inc.
    Media Relations:
    Randy Hargrove, 800-331-0085
    or
    Investor Relations:
    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 a webcast version click here



    ]]>
    Doug McMillon Speaks at U.S.-Africa Business Forum http://es.news.walmart.com/news-archive/2014/08/05/doug-mcmillon-speaks-at-us-africa-business-forum WASHINGTON, D.C. - August 5, 2014 CEO Doug McMillon spoke on a panel titled "Expanding Opportunities: The New Era For Business In Africa," at the U.S.-Africa Business Forum in Washington, D.C., earlier this morning.  The Forum brought together top U.S. and African business executiv... Tue, 05 Aug 2014 16:30:00 GMT http://es.news.walmart.com/news-archive/2014/08/05/doug-mcmillon-speaks-at-us-africa-business-forum 2014-08-05T16:30:00Z WASHINGTON, D.C. – August 5, 2014 CEO Doug McMillon spoke on a panel titled “Expanding Opportunities: The New Era For Business In Africa,” at the U.S.-Africa Business Forum in Washington, D.C., earlier this morning.
      
    The Forum brought together top U.S. and African business executives with more than 40 African heads of state and the U.S. government to forge strong business relationships and increase market activity between the United States and African countries.

    The panel session was moderated by President Bill Clinton and explored the future of U.S.-Africa partnerships and identified new ways to strengthen business ties and enable greater economic progress. Others on the panel included the CEOs at Dangote Group, General Electric, The Dow Chemical Company and Shanduka Group.

    McMillon reiterated Walmart’s commitment to the continent: “We’re investing in Sub-Saharan Africa for the long term, empowering African producers through hands-on training and using our global supply chain to connect them with our businesses around the world.

    "Everywhere we operate we see that our customers have so much in common.  Our customers in Africa want to spend less on everyday needs so they can provide more for their families.  We want to help."

    McMillon also referenced the success of a South African wine producer, Seven Sisters Wines, that supplies a range of wines to 500 U.S. stores. Its CEO, Vivian Kleynhans, took part in Massmart's Developing Wine Brands Program, which helps local suppliers grow their business in South Africa and beyond.

    Tomorrow, Walmart will further strengthen its commitment to empowering its supply chain in Africa by announcing a $3 million investment in three further farmer training programs in Rwanda, Zambia and Kenya.

    Click here for more details on Walmart’s business in Africa.

    ]]>
    Walmart Names Greg Foran President and CEO of Walmart U.S. http://es.news.walmart.com/news-archive/2014/07/24/walmart-names-greg-foran-president-and-ceo-of-walmart-us Bentonville, Ark., July 24, 2014 - Today, Walmart (NYSE: WMT) announced that Greg Foran, 53, has been promoted to President and CEO of Walmart U.S. Foran succeeds Bill Simon who has been in the role since June 2010 and will be transitioning out of the company. Foran will assume his responsibilit... Thu, 24 Jul 2014 12:30:00 GMT http://es.news.walmart.com/news-archive/2014/07/24/walmart-names-greg-foran-president-and-ceo-of-walmart-us 2014-07-24T12:30:00Z Bentonville, Ark., July 24, 2014 – Today, Walmart (NYSE: WMT) announced that Greg Foran, 53, has been promoted to President and CEO of Walmart U.S. Foran succeeds Bill Simon who has been in the role since June 2010 and will be transitioning out of the company.

    Foran will assume his responsibilities on August 9 and will report directly to Walmart President and CEO, Doug McMillon. Simon will be available on a consulting basis for the next six months to ensure a seamless transition.

    "Greg is one of the most talented retailers I've ever met. His depth of knowledge and global experience will bring a fresh perspective to our business," said McMillon. "His passion for fresh food, experience in general merchandise and commitment to e-commerce will help us serve our customers even more effectively for years to come."

    "During Bill's eight years of service to Walmart, his passion for our mission, dedication to our associates and our customers, and innovative thinking pushed us forward," said McMillon. "From the very beginning, his vision led us to lower the cost of health care through our $4 prescription offering. And, most recently, he put us on a path to future growth with small formats and efforts that integrate digital and physical retail."

    A 35-year retail veteran, Foran joined the company in October 2011 and became President and CEO of Walmart China in March 2012. While leading the business in China, the team made significant progress with its assortment, pricing, store operations and compliance as Foran led strategic investments in the supply chain and improved the store portfolio. He was promoted to President and CEO of Walmart Asia earlier this year.

    Prior to Walmart, Foran held a number of roles with Woolworths, the leading retailer in Australia and New Zealand. He served as the managing director of supermarkets, liquor and petrol with responsibility for more than $40 billion in sales at that time. Under Foran's leadership, the business grew sales and market share in a strong competitive market. Earlier in his career, Foran served as general manager of Big W, Woolworth’s industry leading discount store business and as general manager of Dick Smith Electronics.

    "I've worked closely with Greg for the past few years and I've seen firsthand his passion for retail. I'm confident that Greg's strong leadership skills and alignment with our culture will serve our customers and associates well," McMillon said. "I'm excited about what he will bring to this important part of our business."  

    "Being asked to lead the Walmart U.S. business is a privilege that I don't take lightly," said Foran. "I am excited to get started. The needs of our customers are changing dramatically and we have an enormous opportunity to serve them in new and different ways. We must be fierce advocates for our customers, work meticulously to exceed their expectations and earn their trust every day."

    During his tenure as President and CEO of Walmart U.S., Simon led a turnaround that reinvigorated the company's focus on everyday low costs, everyday low prices and an increased product assortment. He also created more career opportunities for associates, launched a U.S. manufacturing revitalization and committed the company to hire more U.S. veterans.

    "Whether we're helping associates earn more for their families or providing customers affordable prices so they can put food on the dinner table, Walmart is a company that is, truly, changing people's lives," said Simon. "It's been an honor to work for Walmart over the past eight years, and this felt like the right time to move on and focus on my next opportunity. I look forward to helping the company as much as I can over the next six months."

    The company will announce Foran’s successor as President and CEO of Walmart Asia at a later date.


    About Walmart
    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 almost 11,000 stores under 71 banners in 27 countries and ecommerce websites in 10 countries. With fiscal year 2014 sales of over $473 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
    ]]>
    Wal-Mart Stores, Inc. to present at the Jefferies 2014 Global Consumer Conference http://es.news.walmart.com/news-archive/2014/06/12/wal-mart-stores-inc-to-present-at-the-jefferies-2014-global-consumer-conference BENTONVILLE, Ark., June 12, 2014 - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the Jefferies 2014 Global Consumer Conference on Thursday, June 19. Walmart U.S. Chief Financial Officer Jeff Davis and Walmart International Chief Financial Officer Brett Biggs will both provide updates on t... Thu, 12 Jun 2014 17:05:00 GMT http://es.news.walmart.com/news-archive/2014/06/12/wal-mart-stores-inc-to-present-at-the-jefferies-2014-global-consumer-conference 2014-06-12T17:05:00Z BENTONVILLE, Ark., June 12, 2014 – Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the Jefferies 2014 Global Consumer Conference on Thursday, June 19. Walmart U.S. Chief Financial Officer Jeff Davis and Walmart International Chief Financial Officer Brett Biggs will both provide updates on their respective businesses. The Walmart U.S. presentation will begin at 9:00 a.m. EDT, while the Walmart International presentation is set to begin at 11:30 a.m. EDT.

    To follow both presentations click on the following links: Walmart U.S. and Walmart International Both presentations will also be webcast live through links at http://news.walmart.com/events/ and transcripts will be available within 24 hours following the live events. The materials will be archived on the company’s website.

    About Walmart
    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 250 million customers and members visit our 10,994 stores under 71 banners in 27 countries and e-commerce websites in 10 countries.  With fiscal year 2014 sales of over $473 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.

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    Walmart Announces 2014 Annual Shareholders' Meeting Voting Results http://es.news.walmart.com/news-archive/2014/06/06/walmart-announces-2014-annual-shareholders-meeting-voting-results FAYETTEVILLE, Ark., June 6, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced shareholder voting results for its Annual Shareholders' Meeting held June 6.  Approximately 89.93 percent of all outstanding shares were present or represented by proxy at the meeting. The company reported... Fri, 06 Jun 2014 19:43:00 GMT http://es.news.walmart.com/news-archive/2014/06/06/walmart-announces-2014-annual-shareholders-meeting-voting-results 2014-06-06T19:43:00Z FAYETTEVILLE, Ark., June 6, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced shareholder voting results for its Annual Shareholders’ Meeting held June 6.  Approximately 89.93 percent of all outstanding shares were present or represented by proxy at the meeting.

    The company reported that shareholders approved the election of each of Walmart's 14 director nominees.  Each director nominee received affirmative votes from approximately 86.81 percent or more of the shares voted, excluding abstentions and broker non-votes, as follows (all percentages are rounded to the nearest 1/100 of 1 percent):

    Director Nominee

    For

    Against

    Aida M. Alvarez

    92.49%

     7.51%

    James I. Cash, Jr.

    94.01%

     5.99%

    Roger C. Corbett

    97.92%

     2.08%

    Pamela J. Craig

    95.78%

     4.22%

    Douglas N. Daft

    96.69%

     3.31%

    Michael T. Duke

    86.81%

     13.19%

    Timothy P. Flynn

    97.08%

      2.92%

    Marissa A. Mayer

    97.89%

      2.11%

    C. Douglas McMillon

    99.21%

      0.79%

    Gregory B. Penner

    97.50%

      2.50%

    Steven S Reinemund

    97.76%

      2.24%

    Jim C. Walton

    97.50%

      2.50%

    S. Robson Walton

    88.86%

      11.14%

    Linda S. Wolf

    96.33%

      3.67%

     

    Shareholders also ratified Ernst & Young LLP as Walmart’s independent accountants, with affirmative votes from approximately 99.54 percent of the shares that were present in person or represented by proxy at the meeting and entitled to vote.

    Shareholders voted to approve, on an advisory basis, the compensation of Walmart's named executive officers described in Walmart's 2014 proxy statement, with approximately 86.41 percent of the shares present in person or represented by proxy voting in favor of this proposal.  The Board of Directors had recommended a vote for this proposal.  

    The three shareholder proposals, which the Board of Directors recommended against, failed to receive affirmative votes from a majority of the total shares that were represented at the meeting and entitled to vote and, accordingly, they were defeated.  A report on the approximate percentages of the shares present or represented by proxy at the meeting that were voted in favor of each shareholder proposal follows:

    ·         Proposal 4 – Independent chairman policy: approximately 15.37 percent of the shares that were present or represented by proxy at the meeting and entitled to vote.

    ·         Proposal 5 – Request for annual report on recoupment of executive pay: approximately 14.70 percent of the shares that were present or represented by proxy at the meeting and entitled to vote.

    ·         Proposal 6 – Request for annual report on lobbying: approximately 10.99 percent of the shares that were present or represented by proxy at the meeting and entitled to vote.

    The official voting results for each of these proposals will be disclosed in a report to be filed next week with the Securities and Exchange Commission.

     

    About Walmart
    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 250 million customers and members visit our 10,994 stores under 71 banners in 27 countries and e-commerce websites in 10 countries.  With fiscal year 2014 sales of over $473 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.
    ]]>
    Walmart CEO Outlines Company's Future: Being Customer-Driven, Investing in its People, Leading at the Forefront of Innovation and Technology http://es.news.walmart.com/news-archive/2014/06/06/walmart-ceo-outlines-companys-future-being-customer-driven-investing-in-its-people-leading-at-the-forefront-of-innovation-and-technology FAYETTEVILLE, Ark., June 6, 2014 - At the company's Annual Shareholders Meeting, Wal-Mart Stores, Inc. President and CEO Doug McMillon reaffirmed Walmart's mission and outlined new ways the company will serve customers through three core principles. "First, we will be a customer-driven company. W... Fri, 06 Jun 2014 15:00:00 GMT http://es.news.walmart.com/news-archive/2014/06/06/walmart-ceo-outlines-companys-future-being-customer-driven-investing-in-its-people-leading-at-the-forefront-of-innovation-and-technology 2014-06-06T15:00:00Z FAYETTEVILLE, Ark., June 6, 2014 – At the company’s Annual Shareholders Meeting, Wal-Mart Stores, Inc. President and CEO Doug McMillon reaffirmed Walmart’s mission and outlined new ways the company will serve customers through three core principles.

    "First, we will be a customer-driven company. We've always said the customer is our boss and we'll make decisions based on how we can serve them better," said McMillon. "Second, we will invest in our people. As we change and grow, it will be our associates who will make the difference. Finally, we need to be at the forefront of innovation and technology. We will lead with urgency to get ahead of change."

    Customer-Driven

    McMillon said Walmart is picking up the pace of change to serve the customer better. "Customers will increasingly expect and require the best of both worlds. They want the excitement and the immediacy of shopping in a physical store and the freedom to shop whenever, however and wherever they want. They want an experience that seamlessly adapts to their life. Walmart can bring together our stores with new digital commerce capabilities to help customers save money, save time, and have access to what they want and need. Walmart will exceed their expectations," McMillon said.

    McMillon continued, "Our stores, 11,000 and growing, will provide access and convenience. If you need it right here, right now, we've got it. We will run great stores and clubs with great associates. We'll keep adding services and pick-up points to our stores to become even more convenient. We'll also strive to have collection points wherever our customers want us to be, and we've seen the demand for food delivery in places like the U.K., Mexico and China. And of course, we'll keep improving our traditional e-commerce offering of ordering online and shipping to customers' homes."

    McMillon also discussed how Walmart would run better stores today to drive same-store sales. He called for: "Price leadership. Strong in stock. Friendly customer service and compelling merchandise. Items that surprise and delight. Merchandise that is presented aggressively. When we're at our best, the features in our stores anticipate what our customers want and need," he said. 

    President and CEO of Sam’s Club Rosalind Brewer spoke about the importance of personalizing the customer and member experience. “Today at Walmart, our data is more organized, more analyzed and more visualized than ever,” said Brewer. “This is helping us make faster and smarter business decisions. But most important, it's helping personalize our service to customers and members. Retailers that lead on data and personalization will be the retailers of the future.” 

    Investing in Our Associates

    McMillon also emphasized the importance of Walmart's associates and said they are the company's competitive advantage. "To bring all of this to life, we're investing in our people," he said. "I'm proud of the jobs and opportunities we offer, and we can do an even better job of creating opportunities to learn and grow. We'll prepare our associates to serve customers better, while building the careers you want at Walmart."  

    President and CEO of Walmart U.S. Bill Simon said the company is investing in new programs that will give associates even more opportunity. “We're re-defining what it means to work at Walmart and we're going to be even clearer about what it takes for associates to advance. We're working to create more flexible work schedules to support you and the needs of all our associates, now and in the future,” Simon said.   

    Leading at the Forefront of Technology and Innovation 

    "We will also develop new capabilities to serve customers in new ways. It is important that we all understand the shift that has happened in technology and retail, what it means for us and what we're doing to win. There's a lot of innovation and opportunity available to us." McMillon said. 

    President and CEO of Walmart International David Cheesewright focused on how customers are changing and how associates are innovating to exceed their expectations. “Wherever we operate, everything starts with the customer, and I see customers’ shopping habits changing more rapidly than I can remember,” said Cheesewright. “Customers are shopping more online, with mobile devices, and they really like convenience. If our customer changes fast, we have to change even faster if we want to continue to exceed her expectations.”   

    President and CEO of Walmart Global eCommerce Neil Ashe highlighted the strong growth of e-commerce sales and how Walmart is bringing together digital and physical retail to serve customers better. “We are integrating digital retail and physical retail to create one seamless, customer-driven Walmart experience. This is providing our shoppers with more value, more time, and greater access,” said Ashe. “We are helping people save money in new and convenient ways so they can live a better life. And we’re doing it by bringing together the best of e-commerce and the best of retail.”   

    Keeping Its Culture Strong, Always  

    McMillon reaffirmed Walmart's commitment to its purpose, culture and values. "Our values won't change. Integrity, service, respect and excellence - these are our guiding beliefs and our behaviors will support those beliefs.  Our culture is what makes us special," McMillon said.   

    "We believe in Walmart's responsibility to lead on big issues, in big ways. It's one of the reasons many of us love being part of Walmart. There are so many ways that Walmart can make a difference around the world. We're committed to doing just that. We will strengthen the trust we've established with customers and the communities we serve," said McMillon.   

    For more information or to watch a replay of the shareholders meeting webcast, please visit http://news.walmart.com/events/walmart-shareholders-meeting-2014  and join the conversation.


    About Walmart

    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 250 million customers and members visit our 10,994 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2014 sales of over $473 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.

    ]]>
    Greg Penner Appointed Vice Chairman of Walmart's Board of Directors http://es.news.walmart.com/news-archive/2014/06/06/greg-penner-appointed-vice-chairman-of-walmarts-board-of-directors FAYETTEVILLE, Ark., June 6, 2014 - The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) today announced the appointment of Greg Penner to the new position of Vice Chairman of the Board of Directors. In the new non-management role, Penner will serve as Chairman of the company's Bo... Fri, 06 Jun 2014 13:20:00 GMT http://es.news.walmart.com/news-archive/2014/06/06/greg-penner-appointed-vice-chairman-of-walmarts-board-of-directors 2014-06-06T13:20:00Z FAYETTEVILLE, Ark., June 6, 2014 – The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) today announced the appointment of Greg Penner to the new position of Vice Chairman of the Board of Directors. In the new non-management role, Penner will serve as Chairman of the company's Board when the Chairman is not present. 
     
    "One of the Board's most important responsibilities is long-term succession planning, and the company spends considerable time planning for stability and continuity, both at the Board and management level," said Rob Walton, who will remain Chairman of the Board of Directors. "In 
    keeping with this commitment, I'm pleased with Greg's appointment. Walmart has benefited from his broad expertise in strategic planning, finance and investment matters. I'm excited about Greg working closely with me, the Board and the management team in guiding Walmart into the future." 
     
    Penner, 44, has served on Walmart's Board since 2008. He is chair of the Technology and eCommerce Committee and also serves on the Global Compensation and Strategic Planning and Finance Committees. 
     
    "I am committed to the long-term success of Walmart," said Penner. "My first Walmart experience was in 1994 and over the years I've developed a deep appreciation for our associates and their service to our customers. I look forward to contributing to a stronger Walmart in any way possible 
    including how we develop new digital capabilities to add to our store offering. This is an exciting time to be part of Walmart." 
     
    Penner brings deep technology and international business experience to Walmart's Board. He has been a general partner of investment management firm Madrone Capital Partners since 2005. From 2002 to 2005, he served as Walmart's Senior Vice President and CFO - Japan. Prior to that 
    role, he was Senior Vice President of Finance and Strategy for Walmart.com. Before joining Walmart, Penner was a general partner at Peninsula Capital, an early stage venture capital fund, and a financial analyst for Goldman Sachs & Co. Penner is the son-in-law of Rob Walton. 
     
    About Walmart 
    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 250 million customers and members visit our 10,994 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2014 sales of over $473 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
    ]]>