Walmart Corporate: Financial News http://news.walmart.com/rss?feedName=financial Press Releases and Featured Topics News from corporate.walmart.com (c) 2014 Wal-Mart Stores, Inc (c) 2014 Wal-Mart Stores, Inc 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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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
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Walmart reports FY 15 Q1 EPS of $1.10; weather impacted EPS approximately $0.03 http://es.news.walmart.com/news-archive/investors/2014/05/15/walmart-reports-fy-15-q1-eps-of-110-weather-impacted-eps-approximately-003 Wal-Mart Stores, Inc. (Walmart) reported first quarter diluted earnings per share from continuing operations (EPS) of $1.10, a decrease of 3.5 percent compared to last year's $1.14. Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03. Additionally, the company's e... Thu, 15 May 2014 12:02:00 GMT http://es.news.walmart.com/news-archive/investors/2014/05/15/walmart-reports-fy-15-q1-eps-of-110-weather-impacted-eps-approximately-003 2014-05-15T12:02:00Z
  • Wal-Mart Stores, Inc. (Walmart) reported first quarter diluted earnings per share from continuing operations (EPS) of $1.10, a decrease of 3.5 percent compared to last year's $1.14. Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03. Additionally, the company's effective tax rate for the quarter was higher than anticipated. The company still expects the full-year tax rate to range between 32 and 34 percent.
  • Consolidated net sales rose approximately $0.9 billion, or 0.8 percent, to $114.2 billion. Currency exchange rate fluctuations negatively impacted net sales by approximately $1.6 billion. Excluding currency,1 net sales would have increased 2.1 percent.
  • Walmart U.S. comp sales were relatively flat as expected, down 8 basis points for the 13-week period ended May 2, 2014. Severe weather adversely impacted comp sales by approximately 20 basis points. Comp sales for the Neighborhood Market format rose approximately 5 percent. Walmart U.S. net sales increased $1.3 billion, or 2.0 percent.
  • Excluding the impact of currency exchange rate fluctuations,1 Walmart International's net sales would have increased 3.4 percent to approximately $34 billion. On a reported basis, net sales were $32.4 billion, a decrease of 1.4 percent.
  • Sam's Club comp sales, without fuel,1 decreased approximately 0.5 percent during the 13-week period ended May 2, 2014. Sam's Club delivered 10.9 percent membership income growth for the quarter.
  • E-commerce sales globally increased approximately 27 percent for the quarter.
  • Consolidated operating income was $6.2 billion, a decrease of 3.8 percent. Severe weather in the U.S. businesses negatively impacted the company's profit.
  • The company returned almost $2.2 billion to shareholders through dividends and share repurchases.
  • The company paid approximately $1.5 billion to purchase substantially all of the remaining outstanding shares of Walmart Chile.
1 See additional information at the end of this release regarding non-GAAP financial measures.

BENTONVILLE, Ark.--(BUSINESS WIRE)--May 15, 2014-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the first quarter ended April 30, 2014.

Consolidated net sales for the first quarter were $114.2 billion, an increase of 0.8 percent over last year. This quarter included the negative impact of approximately $1.6 billion from currency exchange rate fluctuations. Excluding currency,1 net sales would have increased 2.1 percent to $115.7 billion. Membership and other income increased 4.8 percent versus last year. Total revenue was $115.0 billion, an increase of approximately $0.9 billion, or 0.8 percent.

Consolidated net income attributable to Walmart was $3.6 billion, a decrease of 5.0 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.10, or 3.5 percent below last year's $1.14. The company estimated that EPS was adversely affected by approximately $0.03, due to lower net sales and higher direct costs associated with more severe weather than last year.

Weather impacted sales and expenses

"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer.

"Walmart's underlying business is solid, and I'm confident in our long-term strategies. We'll continue to invest in price and enhance our service to improve sales," added McMillon. "We remain focused on growth across the enterprise, especially in small formats like Neighborhood Market in the U.S."

The company continued its significant investment in e-commerce initiatives, including the global technology platform, and sales worldwide rose approximately 27 percent.

"We have the opportunity to create transformative growth through stronger e-commerce capabilities," said McMillon. "Our investments are focused on improving customer experience and fulfillment capacity. We're working to deliver a relevant, personalized and seamless customer experience across all channels to further grow sales."

Returns

The company paid $1.55 billion in dividends and repurchased approximately 8 million shares for $626 million in the first quarter. In total, the company returned almost $2.2 billion to shareholders through dividends and share repurchases.

The company also spent approximately $1.5 billion to purchase substantially all of the remaining outstanding shares in Walmart Chile during the first quarter.

Return on investment1 (ROI) for the trailing 12-months ended April 30, 2014 was 16.7 percent, compared to 17.8 percent for the prior comparable period. The decrease in ROI was primarily due to a decrease in operating income, as well as investments in fixed assets.

Free cash flow1 was $3.8 billion for the quarter ended April 30, 2014, compared to $1.9 billion in the prior year. The increase in free cash flow was primarily due to the timing of income tax payments and lower capital expenditures.

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

Guidance

The company's financial guidance reflects a view of global economic trends and assumes currency rates remain at today's levels.

"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," said Charles Holley, executive vice president and chief financial officer. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

U.S. comparable store sales results

The company reported U.S. comparable store sales based on its 13-week retail calendar for the periods ended May 2, 2014 and April 26, 2013 as follows:

                         
Without Fuel With Fuel Fuel Impact
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
5/2/2014       4/26/2013   5/2/2014       4/26/2013   5/2/2014       4/26/2013  
Walmart U.S. -0.1 % -1.4 % -0.1 % -1.4 % 0.0 % 0.0 %
Sam’s Club -0.5 %     0.2 % -0.8 %     -0.2 % -0.3 %     -0.4 %
Total U.S. -0.2 %     -1.2 % -0.2 %     -1.2 % 0.0 %     0.0 %
 
During the 13-week period, Walmart U.S. comp traffic decreased 1.4 percent, while average ticket increased 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.3 percent for the 13-week period.

In the first quarter period, excluding fuel,1 Sam's Club comp traffic was down 0.2 percent, and ticket was down 0.3 percent. E-commerce sales positively impacted comp sales by approximately 0.2 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.

Net sales results

Net sales, including fuel, were as follows:

         
Three Months Ended
April 30,
(dollars in billions)   2014       2013     Percent Change
Walmart U.S. $ 67.852     $ 66.553 2.0 %
Walmart International 32.424 32.889 -1.4 %
Sam’s Club   13.891       13.871     0.1 %
Consolidated $ 114.167     $ 113.313     0.8 %
 
1 See additional information at the end of this release regarding non-GAAP financial measures.

The following explanations provide additional context to the above table.

  • Excluding the impact of currency exchange rate fluctuations,1 Walmart International's net sales for the quarter would have been $34.0 billion, an increase of 3.4 percent over last year. Currency negatively impacted net sales by approximately $1.6 billion during the quarter.
  • Sam's Club net sales, excluding fuel,1 were $12.2 billion for the quarter, an increase of 0.5 percent over last year.
  • Excluding the impact of currency exchange rate fluctuations,1 consolidated net sales would have increased 2.1 percent during the quarter to $115.7 billion.
Segment operating income

Segment operating income was as follows:

         
Three Months Ended
April 30,
(dollars in billions)   2014       2013     Percent Change
Walmart U.S. $ 4.975     $ 5.197 -4.3 %
Walmart International 1.202 1.163 3.4 %
Sam's Club   0.479       0.490     -2.2 %
Sam's Club (excluding fuel)   0.477       0.484     -1.4 %
 
"I'm pleased with our overall performance this quarter. Our teams are executing key strategic initiatives and driving sales growth, while serving customers wherever and however they want to shop," said David Cheesewright, president and CEO of Walmart International. "We delivered on our commitment to grow operating income at a rate greater than sales, both reported and excluding currency."

"Membership income grew 10.9 percent, building on the 9.0 percent growth from last quarter," said Rosalind Brewer, Sam's Club president and CEO. "The combination of the fee increase, Plus member upgrades and Plus member renewals contributed to this momentum. In addition, we saw positive sales results in categories where we introduced new, differentiated merchandise."

U.S. comparable store sales review and guidance

"Our comp of negative 8 basis points for the period was in line with our relatively flat guidance," said Bill Simon, Walmart U.S. president and CEO. "A number of severe winter storms negatively impacted us during the quarter. A solid start to spring and a strong Easter drove positive comps in the back half of the quarter.

"Neighborhood Markets continued to deliver strong results. Comp sales increased approximately 5 percent for the quarter, and net sales have nearly doubled versus two years ago," Simon said. "We saw strength across food and health & wellness, and we're particularly pleased with our overall traffic trend. April marked the 46th consecutive month of positive comps for Neighborhood Market.

"We have solid business fundamentals," said Simon. "We anticipate our recently launched initiatives, including the Walmart 2 Walmart money transfer service and the video game trade-in program, along with continued price investment, will resonate with the customer."

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

For the 13-week period ending Aug. 1, 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 July 26, 2013.

"We expect that the combination of the national rollout of Sam's Club Cash Rewards and the launch of our new industry leading cash back credit card will enhance member value to drive stronger membership growth. These programs, along with our improvements in merchandise, are expected to drive better comp sales in the future," added Brewer.

Sam's Club expects comp sales, excluding fuel,1 for the 13-week period ending Aug. 1, 2014 to be flat. Last year comp sales, excluding fuel,1 increased 1.7 percent for the 13-week period ended July 26, 2013.

Walmart U.S. and Sam's Club will report comparable sales for the 13-week period ending Aug. 1, on Aug. 14, when the company reports second 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 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.

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., Sam's Club 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 of the company's diluted earnings per share from continuing operations attributable to Walmart for the three months ending July 31, 2014, management's forecast of the company's full-year effective tax rate for the fiscal year ending Jan. 31, 2015 and the company's effective tax rate for the three months ended July 31, 2014, management's forecast of 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 May 3, 2014 through Aug. 1, 2014 (and assumptions underlying our forecasts), management's expectation that the Company will continue to invest in price and enhance service to improve sales, and management's expectation that the combination of the national rollout of Sam's Club Cash Rewards and the launch of a new industry leading cash back credit card will enhance member value to drive stronger membership growth and that these programs, along with Sam's Club's improvement in merchandise, will drive better comp sales in the future 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," "continue to expect, " "expect," "expects," "guidance," "we'll continue," and "will enhance," 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 Walmart's stores and clubs and average ticket size; consumer acceptance of the company's merchandise 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; 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; customers acceptance of new initiatives and program 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 healthcare and other benefits; the number of associates enrolling in Walmart's healthcare 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 changes in the company's assessment of certain tax contingencies, valuation allowances, changes in law, 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.
Consolidated Statements of Income
(Unaudited)

 
      Three Months Ended
SUBJECT TO RECLASSIFICATION April 30,
(Dollars in millions, except share data)   2014         2013       Percent Change
Revenues:
Net sales $ 114,167 $ 113,313 0.8 %
Membership and other income   793     757   4.8 %
Total revenues 114,960 114,070 0.8 %
Costs and expenses:
Cost of sales 86,714 85,991 0.8 %
Operating, selling, general and administrative expenses

  22,053     21,641   1.9 %
Operating income 6,193 6,438 (3.8 )%
Interest:
Debt 531 507 4.7 %
Capital leases 61 66 (7.6 )%
Interest income   (24 )   (43 ) (44.2 )%
Interest, net   568     530   7.2 %
Income from continuing operations before income taxes 5,625 5,908 (4.8 )%
Provision for income taxes   1,914     1,976   (3.1 )%
Income from continuing operations 3,711 3,932 (5.6 )%
Income from discontinued operations, net of income taxes   15     13   15.4 %
Consolidated net income 3,726 3,945 (5.6 )%
Less consolidated net income attributable to noncontrolling interest   (133 )   (161 ) (17.4 )%
Consolidated net income attributable to Walmart $ 3,593   $ 3,784   (5.0 )%
 
Income from continuing operations attributable to Walmart:
Income from continuing operations $ 3,711 $ 3,932 (5.6 )%
Less income from continuing operations attributable to noncontrolling interest   (129 )   (157 ) (17.8 )%
Income from continuing operations attributable to Walmart $ 3,582   $ 3,775   (5.1 )%
 
 
Basic net income per common share:
Basic net income per common share from continuing operations attributable to Walmart $ 1.10 $ 1.14 (3.5 )%
Basic net income per common share from discontinued operations attributable to Walmart   0.01     0.01   %
Basic net income per common share attributable to Walmart $ 1.11   $ 1.15   (3.5 )%
 
Diluted net income per common share:
Diluted net income per common share from continuing operations attributable to Walmart $ 1.10 $ 1.14 (3.5 )%
Diluted net income per common share from discontinued operations attributable to Walmart   0.01       100.0 %
Diluted net income per common share attributable to Walmart $ 1.11   $ 1.14   (2.6 )%
 
Weighted-average common shares outstanding:
Basic 3,233 3,301
Diluted 3,248 3,318
 
Dividends declared per common share $ 1.92 $ 1.88
 

Wal-Mart Stores, Inc.
Consolidated Balance Sheets
(Unaudited)

 
SUBJECT TO RECLASSIFICATION              
(Dollars in millions) April 30, January 31, April 30,
ASSETS   2014     2014       2013  
Current assets:
Cash and cash equivalents $ 6,012 $ 7,281 $ 8,855
Receivables, net 6,096 6,677 6,191
Inventories 45,315 44,858 43,138
Prepaid expenses and other 1,811 1,909 1,992
Current assets of discontinued operations   453     460      
Total current assets 59,687 61,185 60,176
Property and equipment:
Property and equipment 174,731 173,089 167,087
Less accumulated depreciation   (59,585 )   (57,725 )   (53,395 )
Property and equipment, net 115,146 115,364 113,692
Property under capital leases:
Property under capital leases 5,529 5,589 5,893
Less accumulated amortization   (3,032 )   (3,046 )   (3,154 )
Property under capital leases, net 2,497 2,543 2,739
 
Goodwill 19,515 19,510 19,734
Other assets and deferred charges   5,901     6,149     5,846  
Total assets $ 202,746   $ 204,751   $ 202,187  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings $ 3,517 $ 7,670 $ 6,255
Accounts payable 36,347 37,415 36,770
Dividends payable 4,648 4,649
Accrued liabilities 17,807 18,793 17,282
Accrued income taxes 1,966 966 2,318
Long-term debt due within one year 3,287 4,103 5,967
Obligations under capital leases due within one year 300 309 311
Current liabilities of discontinued operations   70     89      
Total current liabilities 67,942 69,345 73,552
 
Long-term debt 45,699 41,771 41,536
Long-term obligations under capital leases 2,742 2,788 3,015
Deferred income taxes and other 8,164 8,017 7,694
Redeemable noncontrolling interest 1,491 549
 
Commitments and contingencies
 
Equity:
Common stock 323 323 329
Capital in excess of par value 2,111 2,362 3,399
Retained earnings 73,366 76,566 68,489
Accumulated other comprehensive income (loss)   (2,712 )   (2,996 )   (1,968 )
Total Walmart shareholders’ equity 73,088 76,255 70,249
Nonredeemable noncontrolling interest   5,111     5,084     5,592  
Total equity   78,199     81,339     75,841  
Total liabilities and equity $ 202,746   $ 204,751   $ 202,187  
 

Wal-Mart Stores, Inc.
Consolidated Statements of Cash Flows
(Unaudited)

 
      Three Months Ended
SUBJECT TO RECLASSIFICATION April 30,
(Dollars in millions)   2014         2013  
Cash flows from operating activities:
Consolidated net income $ 3,726 $ 3,945
Income from discontinued operations, net of income taxes   (15 )   (13 )
Income from continuing operations 3,711 3,932
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 2,250 2,187
Deferred income taxes 26 128
Other operating activities 543 (350 )
Changes in certain assets and liabilities:
Receivables, net 613 567
Inventories (423 ) 584
Accounts payable (831 ) (743 )
Accrued liabilities (942 ) (1,527 )
Accrued income taxes   992     116  
Net cash provided by operating activities 5,939 4,894
 
Cash flows from investing activities:
Payments for property and equipment (2,157 ) (2,968 )
Proceeds from the disposal of property and equipment 48 35
Other investing activities   (12 )   (49 )
Net cash used in investing activities (2,121 ) (2,982 )
 
Cash flows from financing activities:
Net change in short-term borrowings (4,129 ) (551 )
Proceeds from issuance of long-term debt 4,519 4,977
Payments of long-term debt (1,574 ) (1,088 )
Dividends paid (1,547 ) (1,549 )
Purchase of Company stock (626 ) (2,246 )
Dividends paid to noncontrolling interest (28 )
Purchase of noncontrolling interest (1,626 ) (81 )
Other financing activities   (166 )   (217 )
Net cash used in financing activities (5,177 ) (755 )
 
Effect of exchange rates on cash and cash equivalents   90     (83 )
 
Net increase (decrease) in cash and cash equivalents (1,269 ) 1,074
Cash and cash equivalents at beginning of year   7,281     7,781  
Cash and cash equivalents at end of period $ 6,012   $ 8,855  
Wal-Mart Stores, Inc.

Reconciliations of and Other Information Regarding Non-GAAP Financial Measures

(Unaudited)

(In millions, except per share data)

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

Calculation of Return on Investment and Return on Assets

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

ROI was 16.7 percent and 17.8 percent for the trailing 12 months ended Apr. 30, 2014 and 2013, respectively. The decline in ROI was primarily due to the decrease in operating income, as well as investments in fixed assets.

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 net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital.

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

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

 
Wal-Mart Stores, Inc.
Return on Investment and Return on Assets
        Trailing Twelve Months Ended
April 30,
(Dollars in millions)   2014       2013  
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 26,627 $ 27,793
+ Interest income 100 190
+ Depreciation and amortization 8,933 8,564
+ Rent   2,859     2,610  
Adjusted operating income $ 38,519   $ 39,157  
 
Denominator
Average total assets of continuing operations¹ $ 202,240 $ 199,604
+Average accumulated depreciation and amortization¹ 59,583 53,692
- Average accounts payable¹ 36,559 36,919
- Average accrued liabilities¹ 17,545 16,972
+ Rent x 8   22,872     20,880  
Average invested capital $ 230,591   $ 220,285  
Return on investment (ROI)   16.7 %   17.8 %
 
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 16,330   $ 17,754  
Denominator
Average total assets of continuing operations¹ $ 202,240   $ 199,604  
Return on assets (ROA)   8.1 %   8.9 %
 
As of April 30,
Certain Balance Sheet Data   2014   2013     2012  
Total assets of continuing operations² $ 202,293 $ 202,187 $ 197,020
Accumulated depreciation and amortization 62,617 56,549 50,835
Accounts payable 36,347 36,770 37,068
Accrued liabilities 17,807 17,282 16,661
 
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.

2 Total assets of continuing operations as of April 30, 2014, 2013 and 2012 in the table above exclude assets of discontinued operations that are reflected in the Company's Condensed Consolidated Balance Sheets of $453 million, $0 million and $80 million, respectively.
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 $3.8 billion and $1.9 billion for the three months ended April 30, 2014 and 2013, respectively. The increase in free cash flow was primarily due to the timing of income tax payments and 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 net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.

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

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

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

     
Three Months Ended
April 30,
(Dollars in millions)   2014         2013  
Net cash provided by operating activities $ 5,939 $ 4,894
Payments for property and equipment   (2,157 )   (2,968 )
Free cash flow $ 3,782   $ 1,926  
 
Net cash used in investing activities1 $ (2,121 ) $ (2,982 )
Net cash used in financing activities $ (5,177 ) $ (755 )
 
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 months ended April 30, 2014.

         
Three Months Ended April 30, 2014
International     Consolidated
(Dollars in millions)   2014     Percent

Change

  2014 Percent

Change

Net sales:
As reported $ 32,424 (1.4 )% $ 114,167 0.8 %
Currency exchange rate fluctuations1   1,576         1,576      
34,000 115,743
Net sales from acquisitions                
Constant currency net sales $ 34,000     3.4 % $ 115,743     2.1 %
 
Operating income:
As reported $ 1,202 3.4 % $ 6,193 (3.8 )%
Currency exchange rate fluctuations1   23         23      
1,225 6,216
Operating loss from acquisitions                
Constant currency operating income $ 1,225     5.3 % $ 6,216     (3.4 )%
 
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 period ended May 2, 2014 and Apr. 26, 2013, the projected comparable club sales of Sam's Club for the 13 weeks ending Aug. 1, 2014 and the comparable club sales of Sam's Club for the 13 weeks ended July 26, 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 Apr. 30, 2014 and the percentage increase in the net sales of Sam's Club for the three months ended Apr. 30, 2014 over the net sales of Sam's Club for the three months ended Apr. 30, 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 months ended Apr. 30, 2014 and 2013 and the percentage increase in the segment operating income of Sam's Club for the three months ended Apr. 30, 2014 over the segment operating income of Sam's Club for the three months ended Apr. 30, 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 Aug. 1, 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 Aug. 1, 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 Contact
Randy Hargrove, 800-331-0085
or
Investor Relations Contact
Carol Schumacher, 479-277-1498
or
Pre-recorded management call
877-523-5612 (U.S. and Canada)
201-689-8483 (other countries)
Passcode: 9256278 (Walmart)




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Walmart Releases 2014 Annual Shareholders' Meeting Proxy and Annual Report http://es.news.walmart.com/news-archive/2014/04/23/walmart-releases-2014-annual-shareholders-meeting-proxy-and-annual-report BENTONVILLE, Ark. April 23, 2014 — Wal-Mart Stores, Inc. (NYSE: WMT) today filed its Proxy Statement in preparation for its upcoming Annual Shareholders’ Meeting on Friday, June 6. The company also issued its 2014 Annual Report, its Global Responsibility Report and a special Global Compliance Pro... Wed, 23 Apr 2014 20:30:00 GMT http://es.news.walmart.com/news-archive/2014/04/23/walmart-releases-2014-annual-shareholders-meeting-proxy-and-annual-report 2014-04-23T20:30:00Z BENTONVILLE, Ark. April 23, 2014 — Wal-Mart Stores, Inc. (NYSE: WMT) today filed its Proxy Statement in preparation for its upcoming Annual Shareholders’ Meeting on Friday, June 6. The company also issued its 2014 Annual Report, its Global Responsibility Report and a special Global Compliance Program Report on Fiscal Year 2014.

"Walmart has a rich history and is well positioned for the future," commented Walmart President and Chief Executive Officer Doug McMillon in his letter to shareholders. "Our purpose remains clear - to save people money so they can live better - and the actions we're taking will expand the opportunities to fulfill that purpose.

"With greater convergence of digital and physical retail, we're investing in capabilities to provide customers even more choice and convenience. When I think about all these capabilities, I'm confident in Walmart's continued growth and enthusiastic about our future," he said.

McMillon noted that Walmart is strategically focused in areas that include:

  • Positioning the company to serve customers through a relevant, personalized and seamless experience across all channels

  • Expanding opportunities for associates

  • Driving operational excellence with an ongoing commitment to the productivity loop to leverage operating expenses

  • Serving communities through a deep focus on compliance and social, environmental and local responsibility  

Rob Walton, chairman of the Board of Directors, commented in his letter to shareholders about the Board’s record of strong governance.

"Walmart's remarkable record as a retailer is based on our unique ability to deliver on our purpose for customers, the strength of our culture and the foundation of strong governance by our Board of Directors," said Walton. "I'm confident that Doug's leadership will provide Walmart a bright and robust future, furthering the contributions of Mike Duke, who served exceptionally well as our CEO for the past five years and continues as an advisor in the tradition of his predecessors."

In a separate release issued today, the company also announced that Walmart Board member and former President and Chief Executive Officer Lee Scott and Board member Chris Williams will retire from the board on June 6. Scott joined Walmart in 1979, and led the company from January 2000 until his retirement on Jan. 31, 2009. Williams has been a Board member the past 10 years and is rotating off the Board in accordance with Walmart's corporate governance guidelines.

2014 Annual Shareholders’ Meeting and Proxy Statement

Shareholders will vote to elect as directors 14 nominees, who are listed in the company's Proxy Statement, and on two other company proposals. The company began distributing its Proxy Statement today with details of its Annual Meeting of Shareholders. The meeting will be held on Friday, June 6, at 7 a.m. (CDT) in Bud Walton Arena on the University of Arkansas campus in Fayetteville, Ark. Only shareholders of record as of the close of business on April 11, 2014, the record date for the meeting, are entitled to vote at this year's meeting.  

There are three shareholder proposals listed in this year’s Proxy Statement, which can be read online. Shareholders unable to attend the 2014 Annual Shareholders' Meeting in person may view a live webcast at http://www.stock.walmart.com/annual-reports

Annual Report – “So many ways to Save Money. Live Better.”

The Annual Report provides shareholders with summaries of Walmart's achievements in the last fiscal year and key priorities under way this year throughout the company. This includes plans for store expansion and accelerating growth through e-commerce integration globally, creating more opportunities for associates and focusing on customer needs through a broad assortment, every day low prices (EDLP) and a greater combination of digital and physical interaction. The online report features expanded content from the company’s leaders, associates and customers, and is available here.

Global Responsibility Report

The 2014 Global Responsibility Report, the company's seventh update, highlights progress on Walmart’s commitments relating to the intersection of people and our planet – sustainability, local communities and opportunity. This year’s report features an expanded section for compliance and sourcing, details on specific countries where Walmart operates, and enhanced information about the company’s environmental progress on products, energy and waste. A copy of the report can be viewed online.

Global Compliance Program Report on Fiscal Year 2014

Under the direction of the Audit Committee of the Board of Directors, the company created a prioritized list of compliance objectives to accomplish during Fiscal Year 2014. The Global Compliance Program Report for Fiscal Year 2014 describes this innovation in corporate governance and discusses the company's progress on some of the key objectives.  As explained in the report, at the end of the fiscal year the Audit Committee concluded that the company had achieved significant progress in enhancing its compliance program.

Within the Global Compliance Program Report, Walmart’s compliance objectives are broadly grouped into three critical areas: people, policies and processes and systems. The report, which provides comprehensive details highlighting the progress the company made in each area during the past year, is available here.

This year's shareholder meeting materials are also available through the Walmart Investor Relations App, which is available free on the company's website. The app is available on three formats ­- iPad®, iPhone® and Android™ mobile devices.

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 10,984 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 2.2 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.


Media Relations Contact
Randy Hargrove, 800-331-0085

or

Investor Relations Contact
Carol Schumacher, 479-277-1498
Kary Brunner, 479-277-8782

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Wal-Mart Stores, Inc. to present at the 4th Annual ISI Retail Summit http://es.news.walmart.com/news-archive/2014/03/13/wal-mart-stores-inc-to-present-at-the-4th-annual-isi-retail-summit BENTONVILLE, Ark., - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the 4th Annual ISI Retail Summit on Wednesday, March 19, 2014. Walmart U.S. Chief Merchandising Officer Duncan McNaughton will provide an update on the Walmart U.S. business at 11:00 AM EST. Click here to follow Duncan M... Thu, 13 Mar 2014 13:00:00 GMT http://es.news.walmart.com/news-archive/2014/03/13/wal-mart-stores-inc-to-present-at-the-4th-annual-isi-retail-summit 2014-03-13T13:00:00Z BENTONVILLE, Ark., - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the 4th Annual ISI Retail Summit on Wednesday, March 19, 2014. Walmart U.S. Chief Merchandising Officer Duncan McNaughton will provide an update on the Walmart U.S. business at 11:00 AM EST.

Click here to follow Duncan McNaughton’s presentation. The presentation will be webcast live through links at http://news.walmart.com/events/ and a transcript will be available later in the week. The materials will be archived for one year 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 245 million customers and members visit our 10,942 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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Wal-Mart Stores, Inc. to present at the Bank of America Merrill Lynch 2014 Consumer & Retail Conference http://es.news.walmart.com/news-archive/2014/03/03/wal-mart-stores-inc-to-present-at-the-bank-of-america-merrill-lynch-2014-consumer-retail-conference BENTONVILLE, Ark., March 3, 2014 - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the Bank of America Merrill Lynch 2014 Consumer & Retail Conference on Tuesday, March 11. Chief Financial Officer Charles Holley will provide an update on the company's financial priorities as the keynote... Mon, 03 Mar 2014 14:00:00 GMT http://es.news.walmart.com/news-archive/2014/03/03/wal-mart-stores-inc-to-present-at-the-bank-of-america-merrill-lynch-2014-consumer-retail-conference 2014-03-03T14:00:00Z BENTONVILLE, Ark., March 3, 2014 - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the Bank of America Merrill Lynch 2014 Consumer & Retail Conference on Tuesday, March 11. Chief Financial Officer Charles Holley will provide an update on the company's financial priorities as the keynote speaker at the conference at approximately 12:00 p.m. EDT.

Click here to follow Charles Holley’s presentation. The presentation will be webcast live through links at http://news.walmart.com/events/ and a transcript will be available later in the week. 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 245 million customers and members visit our 10,942 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/walmartnewsroom. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

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Walmart U.S. CEO Bill Simon to present at Raymond James Institutional Investors Conference http://es.news.walmart.com/news-archive/2014/02/25/walmart-us-ceo-bill-simon-to-present-at-raymond-james-institutional-investors-conference BENTONVILLE, Ark., Feb. 25, 2014 - Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the 35th annual Raymond James Institutional Investors Conference on Tuesday, March 4, 2014. Walmart U.S. President and CEO Bill Simon will provide an update on the Walmart U.S. business at 10:25 a.m. EST.&nbs... Tue, 25 Feb 2014 14:30:00 GMT http://es.news.walmart.com/news-archive/2014/02/25/walmart-us-ceo-bill-simon-to-present-at-raymond-james-institutional-investors-conference 2014-02-25T14:30:00Z BENTONVILLE, Ark., Feb. 25, 2014 – Wal-Mart Stores, Inc. (NYSE: WMT) will participate in the 35th annual Raymond James Institutional Investors Conference on Tuesday, March 4, 2014. Walmart U.S. President and CEO Bill Simon will provide an update on the Walmart U.S. business at 10:25 a.m. EST. 

Click here to follow Bill Simon’s presentation.  The presentation will be webcast live through links at http://news.walmart.com/events/ and a transcript will be available later in the week.  The materials will be archived for one year 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 245 million customers and members visit our 10,942 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 de México y Centroamérica Will Invest $15.0 Billion Pesos During 2014 to Increase Its Sales Floor and Enhance Technology http://es.news.walmart.com/news-archive/2014/02/24/walmart-de-mexico-y-centroamerica-will-invest-150-billion-pesos-during-2014-to-increase-its-sales-floor-and-enhance-technology Wal-Mart de México, S.A.B. de C.V. (WALMEX) announces to its shareholders, as well as to the public in general, that in 2014, it expects to make an estimated investment of $15.0 billion pesos to increase its sales floor area and enhance technology for e-commerce.   The estimated inves... Tue, 25 Feb 2014 00:30:00 GMT http://es.news.walmart.com/news-archive/2014/02/24/walmart-de-mexico-y-centroamerica-will-invest-150-billion-pesos-during-2014-to-increase-its-sales-floor-and-enhance-technology 2014-02-25T00:30:00Z Wal-Mart de México, S.A.B. de C.V. (WALMEX) announces to its shareholders, as well as to the public in general, that in 2014, it expects to make an estimated investment of $15.0 billion pesos to increase its sales floor area and enhance technology for e-commerce.
 
The estimated investment that will be used for new stores openings is $8.4 billion pesos.  The company will add 3.7 million sales floor square feet in the region.  In Mexico, sales floor is expected to increase by 5.0%, while in Central America it is expected to increase 7.6%, for a total of 5.2%.

The estimated amount to be invested is $6.6 billion pesos, divided as follows: remodeling and maintenance of $3.5 billion pesos; logistics of $1.2 billion pesos; and technology, e-commerce & other of $1.9 billion pesos.

Walmex also announces that today its annual analysts’ meeting took place, during which the abovementioned figures were released. The company also announced proposals for dividends and share repurchases, which will be subject to a vote during the next shareholders’ meeting on March 20, 2014. The corresponding announcement will be released soon. The complete presentations for analysts are available at our website www.walmex.mx.
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Walmart reports Q4 underlying EPS of $1.60, Fiscal 2014 underlying EPS of $5.11 http://es.news.walmart.com/news-archive/investors/2014/02/20/walmart-reports-q4-underlying1-eps-of-160-fiscal-2014-underlying1-eps-of-511 Wal-Mart Stores, Inc. (Walmart) reported fourth quarter diluted earnings per share from continuing operations (EPS) of $1.34, which includes the impact of discrete items detailed in this press release. Underlying1 EPS for the quarter was $1.60. Last year's EPS for the fourth quarter was $1.67. T... Thu, 20 Feb 2014 13:02:00 GMT http://es.news.walmart.com/news-archive/investors/2014/02/20/walmart-reports-q4-underlying1-eps-of-160-fiscal-2014-underlying1-eps-of-511 2014-02-20T13:02:00Z
  • Wal-Mart Stores, Inc. (Walmart) reported fourth quarter diluted earnings per share from continuing operations (EPS) of $1.34, which includes the impact of discrete items detailed in this press release. Underlying1 EPS for the quarter was $1.60. Last year's EPS for the fourth quarter was $1.67.
  • The company reported EPS for fiscal 2014 of $4.85, which includes certain discrete items that impacted the fourth quarter. Underlying1 EPS for fiscal year 2014 was $5.11, a 2.0 percent increase over last year's reported EPS of $5.01.
  • Consolidated net sales reached $473.1 billion for the year, an increase of $7.5 billion, or 1.6 percent. On a constant currency basis,1 net sales would have increased 2.5 percent to $477.5 billion. Currency negatively impacted net sales by approximately $5.1 billion, and acquisitions added approximately $0.7 billion.
  • Consolidated operating income was $26.9 billion for the year, a decrease of 3.1 percent. The company had certain discrete items that impacted operating income by approximately $0.9 billion or 3.3 percent. Excluding these items, underlying1 operating income increased 0.2 percent to $27.8 billion. Walmart U.S., with operating income growth of 4.0 percent, was the major contributor to Walmart's underlying1 profit growth.
  • Walmart U.S. grew net sales 2.4 percent in the quarter and comp sales declined 0.4 percent in the 14-week period ended Jan. 31, 2014. Comp sales for the Neighborhood Market format rose approximately 5.0 percent.
  • Walmart U.S. will increase capital expenditures for fiscal 2015 to accelerate the rollout of small format stores, both Neighborhood Market and Walmart Express.
  • Walmart International grew annual net sales to $136.5 billion, an increase of 1.3 percent. On a constant currency basis,1 International net sales would have increased 4.6 percent to $140.9 billion.
  • Global eCommerce sales, including acquisitions, grew to more than $10 billion during fiscal 2014.
  • The company returned $12.8 billion to shareholders through share repurchases and dividends during the year. [Note: Please see separate release on dividend for fiscal 2015, dated Feb. 20, 2014.]
  • The company issued fiscal 2015 first quarter and fiscal year EPS guidance ranges of $1.10 to $1.20 and $5.10 to $5.45, respectively.
1 See additional information at the end of this release regarding non-GAAP financial measures.

BENTONVILLE, Ark.--(BUSINESS WIRE)--Feb. 20, 2014-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the fourth quarter and fiscal year ended Jan. 31, 2014.

Net sales for the fourth quarter were $128.8 billion, an increase of 1.4 percent over last year. This quarter included the negative impact of approximately $1.8 billion from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 2.8 percent to $130.6 billion. Membership and other income for the fourth quarter increased 12.7 percent versus last year. Total revenue was $129.7 billion, an increase of $1.9 billion, or 1.5 percent, over last year.

Consolidated net income attributable to Walmart was $4.4 billion, a decrease of 21.0 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.34, 19.8 percent below last year’s $1.67. The impact from the discrete items detailed below was $0.26 per share for the fourth quarter.

Fiscal 2014 results

Consolidated net sales for the year were $473.1 billion, an increase of 1.6 percent over fiscal year 2013. Net sales included approximately $5.1 billion of negative impact from currency exchange rate fluctuations and included a favorable impact of approximately $0.7 billion from acquisitions. Membership and other income was $3.2 billion, an increase of 5.6 percent from the prior year. Total revenue was $476.3 billion, an increase of 1.6 percent or $7.6 billion.

Consolidated net income attributable to Walmart was $16.0 billion, a decrease of 5.7 percent. Diluted earnings per share from continuing operations attributable to Walmart were $4.85, 3.2 percent below last year’s $5.01.

The total EPS impact of certain discrete items on the company’s reported fourth quarter and fiscal year results from continuing operations was $0.26 per share. The discrete items and the respective EPS impact were as follows:

     
Brazil non-income tax contingencies $ 0.06
Brazil employment claim contingencies $ 0.05
Brazil and China store closures $ 0.06
China store lease expense charges $ 0.03
India transaction $ 0.05
Sam's Club U.S. staff restructuring and club closure $ 0.01
 
Brazil non-income tax contingencies: The company is subject to tax examinations for non-income taxes in Brazil. A number of these examinations are ongoing, and in certain cases, have resulted in assessments from taxing authorities, some of which we are currently contesting. As part of the company's standard review process and as a result of changing conditions and circumstances, the company recorded additional liabilities related to these loss contingencies.

Brazil employment claim contingencies: Walmart Brazil has experienced a significant increase in employment claims in recent years as a result of company efforts to improve productivity and reduce costs. The company has performed a detailed review of potential liabilities related to these claims, as well as a review of historical processes and practices related to accounting for court deposits required to litigate such claims. As a result of this review, the company recorded charges to increase its liabilities and account for settlements of historical employment claims.

Brazil and China store closures: The company announced the closure of 54 underperforming units between these two markets -- 25 in Brazil and 29 in China.

China store lease expense charges: The company identified a historical lease accounting practice that did not conform to its U.S. GAAP-based global policies. As a result, the company recorded a charge to conform this accounting practice.

India transaction: Walmart terminated the joint venture, franchise and supply agreements with Bharti Enterprises related to retail stores, and exited its investment in the parent of that business.

Sam’s Club U.S. staff restructuring and club closure: Sam’s Club is implementing a new in-club leadership and staff structure to better align U.S. club teams with the sales volume of each club; the resulting charge was for severance-related costs. Additionally, one club has closed.

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

Focus on customers and growth

"Our company grew net sales this year to reach more than $473 billion. Global eCommerce sales, including acquisitions, surpassed the $10 billion mark, a 30 percent increase over last year," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer. "We will continue to grow our global business by focusing on customers and serving them how they want to be served."

McMillon also discussed the company’s priorities.

"Comp sales improvement is a key priority, and we'll focus on being even stronger item and category merchants, delivering value and improving our service levels," McMillon said. "We'll remain focused on our expense structure, and innovate to improve productivity and aid our ability to deliver every day low prices. Our EDLP approach earns trust with customers and helps us keep our cost structure low.

"We'll invest aggressively in e-commerce and increase our small store rollout in the U.S., as we've done in several other countries, to deliver value and convenience. Today, we are announcing an increased capital allocation, above our previous forecast, to accelerate small store growth in the U.S.," McMillon added. "The combination of supercenters and smaller formats closer to customers' homes, along with e-commerce and mobile commerce, will enable us to increase our relevance for the Walmart brand around the world."

Returns

During fiscal 2014, the company repurchased approximately 89 million shares for $6.7 billion. In addition, the company paid $6.1 billion in dividends. In total, the company returned $12.8 billion to shareholders through share repurchases and dividends.

Return on investment1 (ROI) for the fiscal year ended Jan. 31, 2014 was 17.0 percent, compared to 18.1 percent for the prior year. ROI was impacted by a decrease in operating income, as well as investments in fixed assets, and the impact of acquisitions.

"It's important to remember that our reported results included the discrete items we have included in this quarter. If you exclude these items that accounted for 40 basis points, ROI would have been about 17.4 percent for the period," said Charles Holley, executive vice president and chief financial officer.

Free cash flow1 was $10.1 billion for the fiscal year ended Jan. 31, 2014, compared to $12.7 billion in the prior year. Timing of tax payments, as well as slightly higher capital expenditures, were the primary drivers of the reduction.

"Improved operating results and better management of working capital, including inventory efficiency, will drive stronger cash flow," added Holley. "We are working hard across the organization on these opportunities in order to maximize free cash flow this year."

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

Guidance

"We expect first quarter fiscal year 2015 earnings per share from continuing operations to be between $1.10 and $1.20. This compares to the reported $1.14 last year," said Holley. "We expect full year earnings per share from continuing operations to be in the range of $5.10 and $5.45. This compares to a reported EPS of $4.85 in fiscal 2014, which included the discrete items we told you about. Underlying1 EPS for fiscal 2014 was $5.11.

"We expect economic factors to continue to weigh on our outlook," said Holley. "Some of the factors affecting our consumers include reductions in government benefits, higher taxes and tighter credit. Further, we have higher group health care costs in the U.S. These concerns, combined with investments in e-commerce, will make it difficult to achieve the goal we have of growing operating income at the same or faster rate than sales. In October, we forecasted a 3 to 5 percent net sales increase for fiscal 2015. Given these factors and the ongoing headwind from currency exchange, we expect to be toward the low end of the net sales guidance.

"Additionally, all guidance provided today assumes currency exchange rates remain at current levels," added Holley. "If currency rates remain where they are today, net sales would be negatively impacted by approximately $3.5 billion for fiscal 2015. During the first quarter of this year, we will begin to anniversary the increased costs we incurred last year for FCPA matters, including compliance program enhancements and the ongoing investigations. We anticipate expenses for FCPA matters and compliance-related enhancements to range between $200 and $240 million for fiscal 2015."

The company’s pending sale of the Vips restaurant business in Mexico remains subject to regulatory approval and is now expected to be completed in the first quarter of fiscal 2015. The Vips results are recorded in discontinued operations, and the estimated future gain from the sale is expected to be approximately $0.06 per share.

Expanding U.S. store growth

The company announced plans to expand its original Walmart U.S. capital plan for this fiscal year by accelerating U.S. small store growth through Neighborhood Market and Walmart Express units.

"In October, we announced our plan to grow our U.S. store base with large and small formats," said Bill Simon, Walmart U.S. president and CEO. "Today, we are expanding on our original plans with additional small stores. We will maintain our projection for supercenter growth with approximately 115 new stores.

"Neighborhood Markets continued to deliver consistent solid comp sales growth, and customers appreciate the convenience of our small stores. They are a proven model," added Simon. "We're also pleased with how well the 20 Express stores are doing, and we're expanding our pilot beyond the initial three markets. These small formats are digitally connected and provide customers convenient access to a broad assortment, including fresh, pharmacy and fuel. We will now open between 270 and 300 small format units this year, which will nearly double our fleet and fuel growth as we enter the next generation of retail."

The result of this program enhancement is an increase of $600 million to the company's total fiscal year 2015 forecast for capital expenditures. The updated range is $12.4 to $13.4 billion versus the October forecast of $11.8 to $12.8 billion.

The following tables provide an update to the company’s previously provided plans for capital expenditures, net retail square footage growth and total U.S. unit growth for fiscal year 2015.

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

 
 
Capital Expenditure Detail
(US$ billions)
Segment       Actual FY13     Actual FY14     FY 15 Original

Guidance

    FY15 Revised

Guidance

Walmart U.S. $6.0 $6.4 $5.8 - 6.3 $6.4 - 6.9
Sam's Club U.S. $0.9 $1.1 $1.0 $1.0
Walmart International $4.6 $4.4 $4.0 - 4.5 $4.0 - 4.5
Corporate & Support       $1.4     $1.2     $1.0     $1.0
Total       $12.9     $13.1     $11.8 - 12.8     $12.4 - 13.4
 
 
Net Retail Square Footage Growth
(in millions)
Segment Actual FY13 Actual FY14 FY 15 Original

Guidance

FY15 Revised

Guidance

Walmart U.S. 14.0 18.4 19 - 21 21 - 23
Sam's Club U.S. 1.1 1.7 2 2
Walmart International       19.4     12.5     12 - 14     12 - 14
Total       34.5     32.6     33 - 37     35 - 39
 
 
Total U.S. Unit Growth
(Gross)
Segment Actual FY13 Actual FY14 FY 15 Original

Guidance

FY15 Revised

Guidance

Large formats 136 130 ~115 ~115
Small formats 79 121 120 - 150 270 - 300
Total Walmart U.S. 215 251 235 - 265 385 - 415
Sam's Club U.S.       14     12     17 - 22     17 - 22
Total       229     263     ~252 - 287     ~402 - 437
 
 
 
U.S. comparable store sales results

The company reported U.S. comparable store sales based on its 14-week and 53-week retail calendar for the periods ended Jan. 31, 2014 and Feb. 1, 2013 as follows:

                   
Without Fuel With Fuel Fuel Impact
14 Weeks Ended 14 Weeks Ended 14 Weeks Ended
1/31/2014     2/1/2013 1/31/2014     2/1/2013 1/31/2014     2/1/2013
Walmart U.S. -0.4 %   0.3 % -0.4 %   0.3 % 0.0%   0.0%
Sam’s Club -0.1 %   1.8 % -0.1 %   2.0 % 0.0%   0.2 %
Total U.S. -0.4 %   0.5 % -0.4 %   0.6 % 0.0%   0.1 %
     
Without Fuel With Fuel Fuel Impact
53 Weeks Ended 53 Weeks Ended 53 Weeks Ended
1/31/2014   2/1/2013 1/31/2014   2/1/2013 1/31/2014   2/1/2013
Walmart U.S. -0.6 % 1.6 % -0.6 % 1.6 % 0.0% 0.0%
Sam’s Club 0.7 %   3.4 % 0.4 %   3.8 % -0.3 %   0.4 %
Total U.S. -0.4 %   1.9 % -0.4 %   2.0 % 0.0%   0.1 %
 
During the 14-week period, Walmart U.S. comp traffic decreased 1.7 percent, while average ticket increased 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.3 percent for the 14-week period.

In the fourth quarter period, excluding fuel,1 Sam’s Club comp traffic was up 1.2 percent, while ticket was down 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.4 percent for the 14-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.

Net sales results

Net sales, including fuel, were as follows:

      Three Months Ended     Fiscal Years Ended
January 31, January 31,
(dollars in billions) 2014     2013     Percent

Change

2014     2013     Percent

Change

Walmart U.S. $ 76.433 $ 74.644 2.4% $ 279.406 $ 274.433 1.8%
Walmart International 37.674 37.826 -0.4% 136.513 134.748 1.3%
Sam's Club 14.679 14.490 1.3% 57.157 56.423 1.3%
Consolidated $ 128.786 $ 126.960 1.4% $ 473.076 $ 465.604 1.6%
 
1 See additional information at the end of this release regarding non-GAAP financial measures.

The following explanations provide additional context to the above table.

  • On a constant currency basis,1 Walmart International’s net sales for the year would have been $140.9 billion, an increase of 4.6 percent over last year. Currency exchange fluctuations negatively impacted net sales by approximately $5.1 billion during the year, and acquisitions favorably impacted sales by approximately $0.7 billion.
  • Sam’s Club net sales, excluding fuel,1 were $50.6 billion for the year, an increase of 1.6 percent over last year.
  • Consolidated net sales on a constant currency basis1 would have increased 2.5 percent during fiscal year 2014 to $477.5 billion.
Segment operating income

Segment operating income was as follows:

      Three Months Ended     Fiscal Years Ended
January 31, January 31,
(dollars in billions) 2014     2013     Percent

Change

2014     2013     Percent

Change

Walmart U.S. $ 6.378 $ 6.369 0.1% $ 22.351 $ 21.491 4.0%
Walmart International 1.310 2.416 -45.8% 5.454 6.617 -17.6%
Sam's Club 0.425 0.502 -15.3% 1.975 1.960 0.8%
Sam's Club (excluding fuel) 0.412 0.489 -15.7% 1.949 1.913 1.9%
 
"The combination of soft sales, price investments, higher expenses, and investments in e-commerce caused Walmart International’s operating income to decrease on a reported and constant currency basis," said David Cheesewright, president and CEO of Walmart International.

"Our strategy is a simple promise of being in good businesses and running them well," added Cheesewright. "We have initiated actions in Mexico, Brazil and China to improve our operating performance, and this is a priority for fiscal 2015."

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

U.S. comparable store sales review and guidance

"For fiscal year 2015, the Walmart U.S. team is focusing on growth and returning to positive comps," said Simon. "To get there, we will drive additional improvements in price investment and merchandise, test our market ecosystem and pilot our tethering concept.

"Comp sales were down in the first two weeks of February due to continued severe winter storms," added Simon. "At the height of the storm, we had more than 200 stores closed. We're optimistic about the balance of the quarter and believe we will have a positive sales comp for the rest of the period."

For the 13-week period ending May 2, 2014, Walmart U.S. expects comp store sales to be relatively flat. Last year, Walmart's comp sales declined 1.4 percent for the 13-week period ended April 26, 2013.

"The underlying health of the Sam's Club business is sound. The restructuring efforts implemented are allowing us to be more agile, focusing on the growth opportunities within the club channel," said Rosalind Brewer, Sam's Club president and CEO. "The strategies we have in place will deliver value for our members, helping to grow the business and drive strong financial performance in fiscal year 2015."

Sam’s Club expects comp sales, excluding fuel,1 for the 13-week period ending May 2, 2014 to be relatively flat. Last year comp sales, excluding fuel,1 increased 0.2 percent for the 13-week period ended April 26, 2013.

Walmart U.S. and Sam’s Club will report comparable sales for the 13-week period ending May 2, on May 15, 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 245 million customers and members visit our 10,942 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.

Notes

After this earnings release has been furnished to the Securities and Exchange Commission (SEC), a pre- recorded call offering additional comments on the quarter will be available to all investors. Information included in this release, including reconciliations, and the pre-recorded phone call can be accessed via webcast by visiting the investor information area on the company’s website at www.stock.walmart.com. 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., Sam’s Club 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 of the company’s diluted earnings per share from continuing operations attributable to Walmart for the three months ending April 30, 2014 and the fiscal year ending Jan. 31, 2015, management’s forecast of 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 Feb. 1, 2014 through May 2, 2014, management’s forecast of the range of growth in the consolidated net sales of the company in the fiscal year ending Jan. 31, 2015, management’s expectation that such growth will be at the low end of that range, management’s revised forecasts of the ranges of capital expenditures for the fiscal year ending Jan. 31, 2015 by Walmart in total, by each of its three operating segments (including an increase in the forecasted capital expenditures of the Walmart U.S. operating segment over the level of a previously announced forecast) and in the corporate and support category, of the additional net retail square footage to be added in the fiscal year ending Jan. 31, 2015 by Walmart in total and by each of its three operating segments and of the additional units to be added in the United States in total, by the Walmart U.S. operating segment (by large and small formats and in total) and by the Sam's Club operating segment, management’s estimate of the per share gain to be recognized upon the sale of the Vips restaurant business, management’s forecast of the number of new supercenters and the revised forecast of the total number of new Neighborhood Market and Walmart Express stores to be opened in the fiscal year ending Jan. 31, 2015, management’s forecast of the range of FCPA-related expenses the company will incur in the fiscal year ending Jan. 31, 2015 and that the increase FCPA-related expenses will begin to anniversary in the three months ending April 30, 2014, and certain assumptions on which those forecasts are based, as well as statements regarding: the company continuing to grow its global business by certain means; the company investing aggressively in e-commerce and increasing the small store rollout in the U.S.; certain concerns and dedication to price investment making it difficult to achieve the goal of growing operating income at the same or faster rate than sales in the fiscal year ending Jan. 31, 2015; the Walmart U.S. operating segment increasing its capital expenditures to accelerate the roll-out of new Neighborhood Market and Walmart Express units; the Walmart U.S. operating segment driving additional improvements in price investment and merchandise; and the Sam’s Club operating segment having in place strategies that will help grow that operating segment’s business and drive strong financial performance by that operating segment in the fiscal year ending Jan. 31, 2015 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," "estimated," "expect," "expects," "forecasted," "FY15 Revised Guidance," "guidance," "helping to grow … and drive," "is expected," "projection," "updated range," "will begin to anniversary," "will continue," " "will drive," "will have," "will increase," "will invest," "will make" and "will now open," 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 Walmart's stores and clubs and average ticket size; consumer acceptance of the company's merchandise 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; the disruption of seasonal buying patterns in the United States and other markets; geo-political conditions and events; the availability of attractive acquisition opportunities among e-commerce and other retail-related companies; 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 healthcare and other benefits; the number of associates enrolling in Walmart's healthcare 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 and labor, material and other construction costs in areas in which new units are proposed to be constructed or in which existing units are proposed to be relocated, expanded or remodeled; the cost of construction materials and other construction costs; 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; the company not obtaining the necessary approval for the sale of the Vips restaurant business and failure of the purchaser of the Vips restaurant business to perform its obligations regarding the purchase of the Vips restaurant business; factors that may affect the company's effective tax rate, including changes in the company's assessment of certain tax contingencies, valuation allowances, changes in law, 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.
Consolidated Statements of Income
(Unaudited)

 
      Three Months Ended     Fiscal Years Ended
SUBJECT TO RECLASSIFICATION January 31, January 31,
(Dollars in millions, except share data) 2014     2013     Percent

Change

2014     2013     Percent

Change

Revenues:
Net sales $ 128,786 $ 126,960 1.4 % $ 473,076 $ 465,604 1.6 %
Membership and other income 920   816   12.7 % 3,218   3,047   5.6 %
Total revenues 129,706 127,776 1.5 % 476,294 468,651 1.6 %
Costs and expenses:
Cost of sales 97,971 96,071 2.0 % 358,069 352,297 1.6 %
Operating, selling, general and administrative expenses 24,388   23,125   5.5 % 91,353   88,629   3.1 %
Operating income 7,347 8,580 (14.4 )% 26,872 27,725 (3.1 )%
Interest:
Debt 516 465 11.0 % 2,072 1,977 4.8 %
Capital leases 65 67 (3.0 )% 263 272 (3.3 )%
Interest income (27 ) (55 ) (50.9 )% (119 ) (186 ) (36.0 )%
Interest, net 554   477   16.1 % 2,216   2,063   7.4 %
Income from continuing operations before income taxes 6,793 8,103 (16.2 )% 24,656 25,662 (3.9 )%
Provision for income taxes 2,249   2,240   0.4 % 8,105   7,958   1.8 %
Income from continuing operations 4,544 5,863 (22.5 )% 16,551 17,704 (6.5 )%
Income from discontinued operations, net of income taxes 106   13   715.4 % 144   52   176.9 %
Consolidated net income 4,650 5,876 (20.9 )% 16,695 17,756 (6.0 )%
Less consolidated net income attributable to noncontrolling interest (219 ) (270 ) (18.9 )% (673 ) (757 ) (11.1 )%
Consolidated net income attributable to Walmart $ 4,431   $ 5,606   (21.0 )% $ 16,022   $ 16,999   (5.7 )%
 
Income from continuing operations attributable to Walmart:
Income from continuing operations $ 4,544 $ 5,863 (22.5 )% $ 16,551 $ 17,704 (6.5 )%
Less income from continuing operations attributable to noncontrolling interest (190 ) (266 ) (28.6 )% (633 ) (741 ) (14.6 )%
Income from continuing operations attributable to Walmart $ 4,354   $ 5,597   (22.2 )% $ 15,918   $ 16,963   (6.2 )%
 
 
Basic net income per common share:
Basic net income per common share from continuing operations attributable to Walmart $ 1.34 $ 1.68 (20.2 )% $ 4.87 $ 5.03 (3.2 )%
Basic net income per common share from discontinued operations attributable to Walmart 0.03     100.0 % 0.03   0.01   200.0 %
Basic net income per common share attributable to Walmart $ 1.37   $ 1.68   (18.5 )% $ 4.90   $ 5.04   (2.8 )%
 
Diluted net income per common share:
Diluted net income per common share from continuing operations attributable to Walmart $ 1.34 $ 1.67 (19.8 )% $ 4.85 $ 5.01 (3.2 )%
Diluted net income per common share from discontinued operations attributable to Walmart 0.02     100.0 % 0.03   0.01   200.0 %
Diluted net income per common share attributable to Walmart $ 1.36   $ 1.67   (18.6 )% $ 4.88   $ 5.02   (2.8 )%
 
Weighted-average common shares outstanding:
Basic 3,240 3,340 3,269 3,374
Diluted 3,254 3,355 3,283 3,389
 
Dividends declared per common share $ $ $ 1.88 $ 1.59
 
 
 
 
 
 
Wal-Mart Stores, Inc.
Consolidated Balance Sheets
(Unaudited)

 
SUBJECT TO RECLASSIFICATION
(Dollars in millions)       January 31,
ASSETS 2014     2013
Current assets:
Cash and cash equivalents $ 7,281 $ 7,781
Receivables, net 6,677 6,768
Inventories 44,858 43,803
Prepaid expenses and other 1,909 1,551
Current assets of discontinued operations 460   37  
Total current assets 61,185 59,940
Property and equipment:
Property and equipment 173,089 165,825
Less accumulated depreciation (57,725 ) (51,896 )
Property and equipment, net 115,364 113,929
Property under capital leases:
Property under capital leases 5,589 5,899
Less accumulated amortization (3,046 ) (3,147 )
Property under capital leases, net 2,543 2,752
 
Goodwill 19,510 20,497
Other assets and deferred charges 6,149   5,987  
Total assets $ 204,751   $ 203,105  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings $ 7,670 $ 6,805
Accounts payable 37,415 38,080
Accrued liabilities 18,793 18,802
Accrued income taxes 966 2,211
Long-term debt due within one year 4,103 5,587
Obligations under capital leases due within one year 309 327
Current liabilities of discontinued operations 89   6  
Total current liabilities 69,345 71,818
 
Long-term debt 41,771 38,394
Long-term obligations under capital leases 2,788 3,023
Deferred income taxes and other 8,017 7,613
Redeemable noncontrolling interest 1,491 519
 
Commitments and contingencies
 
Equity:
Common stock 323 332
Capital in excess of par value 2,362 3,620
Retained earnings 76,566 72,978
Accumulated other comprehensive income (loss) (2,996 ) (587 )
Total Walmart shareholders’ equity 76,255 76,343
Nonredeemable noncontrolling interest 5,084   5,395  
Total equity 81,339   81,738  
Total liabilities and equity $ 204,751   $ 203,105  
 
 
 
 
 
 
Wal-Mart Stores, Inc.
Consolidated Statements of Cash Flows
(Unaudited)

 
      Fiscal Years Ended
SUBJECT TO RECLASSIFICATION January 31,
(Dollars in millions) 2014     2013
Cash flows from operating activities:
Consolidated net income $ 16,695 $ 17,756
Income from discontinued operations, net of income taxes (144 ) (52 )
Income from continuing operations 16,551 17,704
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 8,870 8,478
Deferred income taxes (279 ) (133 )
Other operating activities 938 602
Changes in certain assets and liabilities:
Receivables, net (566 ) (614 )
Inventories (1,667 ) (2,759 )
Accounts payable 531 1,061
Accrued liabilities 103 271
Accrued income taxes (1,224 ) 981  
Net cash provided by operating activities 23,257 25,591
 
Cash flows from investing activities:
Payments for property and equipment (13,115 ) (12,898 )
Proceeds from the disposal of property and equipment 727 532
Investments and business acquisitions, net of cash acquired (15 ) (316 )
Other investing activities 105   71  
Net cash used in investing activities (12,298 ) (12,611 )
 
Cash flows from financing activities:
Net change in short-term borrowings 911 2,754
Proceeds from issuance of long-term debt 7,072 211
Payments of long-term debt (4,968 ) (1,478 )
Dividends paid (6,139 ) (5,361 )
Dividends paid to and stock purchases of noncontrolling interest (722 ) (414 )
Purchase of Company stock (6,683 ) (7,600 )
Other financing activities (488 ) (84 )
Net cash used in financing activities (11,017 ) (11,972 )
 
Effect of exchange rates on cash and cash equivalents (442 ) 223  
 
Net increase (decrease) in cash and cash equivalents (500 ) 1,231
Cash and cash equivalents at beginning of year 7,781   6,550  
Cash and cash equivalents at end of year $ 7,281   $ 7,781  
 
 
 
 
 
 
Wal-Mart Stores, Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)
(In millions, except per share data)

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

Calculation of Return on Investment and Return on Assets

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

ROI was 17.0 percent and 18.1 percent for the fiscal years ended Jan. 31, 2014 and 2013, respectively. ROI was impacted by a decrease in operating income, as well as investments in fixed assets, and the impact from acquisitions.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the fiscal year divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus 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 twelve 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 net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital.

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

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

 
 
 
 
 
 
Wal-Mart Stores, Inc.
Return on Investment and Return on Assets
 
          Fiscal Years Ended
January 31,
(Dollars in millions) 2014     2013
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 26,872 $ 27,725
+ Interest income 119 186
+ Depreciation and amortization 8,870 8,478
+ Rent 2,828   2,581  
Adjusted operating income $ 38,689   $ 38,970  
 
Denominator
Average total assets of continuing operations1 $ 203,680 $ 198,193
+ Average accumulated depreciation and amortization1 57,907 51,829
- Average accounts payable1 37,748 37,344
- Average accrued liabilities1 18,798 18,478
+ Rent x 8 22,624   20,648  
Average invested capital $ 227,665   $ 214,848  
Return on investment (ROI) 17.0 % 18.1 %
 
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 16,551   $ 17,704  
Denominator
Average total assets of continuing operations1 $ 203,680   $ 198,193  
Return on assets (ROA) 8.1 % 8.9 %
 
As of January 31,
Certain Balance Sheet Data 2014 2013 2012
Total assets of continuing operations $ 204,291 $ 203,068 $ 193,317
Accumulated depreciation and amortization 60,771 55,043 48,614
Accounts payable 37,415 38,080 36,608
Accrued liabilities 18,793 18,802 18,154
 
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 $10.1 billion and $12.7 billion for the fiscal years ended Jan. 31, 2014 and 2013, respectively. Timing of tax payments, as well as slightly higher capital expenditures, were the primary drivers of the reduction.

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

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

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

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

 
      Fiscal Years Ended
January 31,
(Dollars in millions) 2014     2013
Net cash provided by operating activities $ 23,257 $ 25,591
Payments for property and equipment (13,115 ) (12,898 )
Free cash flow $ 10,142   $ 12,693  
 
Net cash used in investing activities1

$ (12,298 ) $ (12,611 )
Net cash used in financing activities $ (11,017 ) $ (11,972 )
 
1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.

 
 
 
 
 
Constant Currency

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

The table below reflects the calculation of constant currency for net sales and operating income for the three months and fiscal year ended Jan. 31, 2014.

 
      Three Months Ended January 31, 2014     Fiscal Year Ended January 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 $ 37,674 (0.4 )% $ 128,786 1.4 % $ 136,513 1.3 % $ 473,076 1.6 %
Currency exchange rate fluctuations1 1,787       1,787       5,111         5,111        
39,461 130,573 141,624 478,187
Net sales from acquisitions             (730 )       (730 )      
Constant currency net sales $ 39,461     4.3 % $ 130,573     2.8 % $ 140,894       4.6 % $ 477,457       2.5 %
 
Operating income:
As reported $ 1,310 (45.8 )% $ 7,347 (14.4 )% $ 5,454 (17.6 )% $ 26,872 (3.1 )%
Currency exchange rate fluctuations1 36       36       26         26        
1,346 7,383 5,480 26,898
Operating loss from acquisitions             156         156        
Constant currency operating income $ 1,346     (44.3 )% $ 7,383     (14.0 )% $ 5,636       (14.8 )% $ 27,054       (2.4 )%
 
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 fourteen-week and fifty-three week periods ended Jan. 31, 2014 and Feb. 1, 2013, the projected comparable club sales of Sam’s Club for the thirteen weeks ending May 2, 2014 and the comparable club sales of Sam’s Club for the thirteen weeks ended April 26, 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 fiscal year ended Jan. 31, 2014 and the percentage increase in the net sales of Sam’s Club for the fiscal year ended Jan. 31, 2014 over the net sales of Sam’s Club for the fiscal year ended Jan. 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 months and the fiscal years ended Jan. 31, 2014 and 2013 and the percentage increase in the segment operating income of Sam’s Club for the three months and the fiscal year ended Jan. 31, 2014 over the segment operating income of Sam’s Club for the three months and fiscal year ended Jan. 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's 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 the Sam's Club's projected comparable club sales for the thirteen-week period ending May 2, 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 thirteen-week period ending May 2, 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)



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Walmart raises annual dividend to $1.92 per share, representing the 41st consecutive year of dividend increases http://es.news.walmart.com/news-archive/2014/02/20/walmart-raises-annual-dividend-to-192-per-share-representing-the-41st-consecutive-year-of-dividend-increases BENTONVILLE, Ark., February 20, 2014 - The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2015 of $1.92 per share, an increase of two percent from the $1.88 per share paid during fiscal year 2014.  The fiscal year 2015 annual dividend... Thu, 20 Feb 2014 12:15:00 GMT http://es.news.walmart.com/news-archive/2014/02/20/walmart-raises-annual-dividend-to-192-per-share-representing-the-41st-consecutive-year-of-dividend-increases 2014-02-20T12:15:00Z BENTONVILLE, Ark., February 20, 2014 – The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2015 of $1.92 per share, an increase of two percent from the $1.88 per share paid during fiscal year 2014.  The fiscal year 2015 annual dividend of $1.92 per share will be paid in four quarterly installments of $0.48 per share, according to the following record and payable dates:




“We are pleased to continue our long history of dividend increases for Walmart shareholders,” said Doug McMillon, president and chief executive officer.  “In fact, this is the 41st consecutive year that we have raised our annual dividend.  This consistency of returns to shareholders is a testament to the strength of our global portfolio in generating solid free cash flow.  During fiscal year 2014, we returned $12.8 billion to shareholders in the form of dividends and share repurchases.

"In this new year, we are excited about the opportunities we have to serve our customers around the world through relevant store formats and our growing portfolio of e-commerce sites and mobile capabilities," said McMillon.  "Our strong asset base and compelling customer proposition will continue to deliver value for our customers and provide solid returns to our shareholders."

 
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 more than 11,300 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 and the dividend history can be found by visiting stock.walmart.com.


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Walmart U.S. accelerates small store growth http://es.news.walmart.com/news-archive/2014/02/20/walmart-us-accelerates-small-store-growth BENTONVILLE, Ark., Feb. 20, 2014 – Behind a real estate strategy focused on providing the broadest selection of products and convenient access through a digitally connected, multi-format portfolio, Wal-Mart Stores Inc. (NYSE: WMT) today announced it is significantly accelerating its capital plan ... Thu, 20 Feb 2014 12:15:00 GMT http://es.news.walmart.com/news-archive/2014/02/20/walmart-us-accelerates-small-store-growth 2014-02-20T12:15:00Z BENTONVILLE, Ark., Feb. 20, 2014 – Behind a real estate strategy focused on providing the broadest selection of products and convenient access through a digitally connected, multi-format portfolio, Wal-Mart Stores Inc. (NYSE: WMT) today announced it is significantly accelerating its capital plan for U.S. small store format openings for the current fiscal year. 

The company is expanding its original capital forecast provided last October, and now expects to add approximately 270 to 300 small stores during the fiscal year, doubling the initial forecast of 120 to150 stores. Walmart U.S. will continue its plan to open approximately 115 new supercenters this year.

"Customers' needs and expectations are changing. They want to shop when they want and how they want, and we are transforming our business to meet their expectations," said Bill Simon, Walmart U.S. president and CEO. "Customers appreciate the broad assortment of our supercenters for their stock-up trips as well as our small store formats for fill-in trips. By unlocking this growth opportunity and further combining our supercenters and small store formats with an unlimited selection available through ecommerce, we provide our customers with anytime, anywhere access to our brand."

The small store fleet has continued to deliver positive comp sales and traffic increases each quarter. Comp sales for Neighborhood Market stores grew approximately 4 percent for fiscal year 2014, driven by fresh and pharmacy.     

"Neighborhood Market is performing comparable or favorable to leading grocers," said Simon.  "Our small store expansion, in addition to providing customers access to a wide variety of products, including fresh, pharmacy and fuel, will help us usher in the next generation of retail. This will combine thousands of points of physical access with digital retail experiences that include initiatives such as Site to Store and Pay with Cash."

Walmart currently operates 346 Neighborhood Markets and 20 Walmart Express stores. The Express units have performed well and are being expanded beyond the initial three-market pilot. As a result of its more aggressive plan, Walmart U.S. projects to end fiscal year 2015 with net retail square footage growth of approximately 21 to 23 million square feet across all formats, versus its original projection of approximately 19 to 21 million square feet. The projected capital expenditures and square footage details exclude the impact of future acquisitions.

"We have a healthy pipeline of stores in development, and we systematically work to improve our real estate and construction processes, reduce building costs and shorten the time needed to open our stores," said Simon. "In addition to providing best-in-class one-stop shopping at supercenters, we believe that accelerating our small store expansion will allow customers to choose where and when to shop based on their needs. Our small store expansion will also strengthen our market share and create greater efficiencies in our supply chain through a tethered approach that uses supercenters as a supply chain base, links our resources and provides a unique and connected customer experience."

To fund this additional growth, the company is revising its capital expenditures forecast for the Walmart U.S. segment to $6.4 to $6.9 billion, up from an initial range of $5.8 to $6.3 billion. This reflects the increased small store growth and the current pipeline of supercenters, which remain an essential part of the company's strategy. In total, across supercenter and small store formats, Walmart U.S. plans to open 385 to 415 units in fiscal 2015, adding considerably to the more than 4,200 stores currently open. 


NOTE: High resolution photos of Neighborhood Markets are available at: news.walmart.com/photos.

 

About Wal-Mart Stores, Inc. (NYSE: WMT)
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 11,302 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.  



Forward-looking statement

This release contains statements as to Wal-Mart Stores, Inc. management's forecasts of the number of new small format stores, the number of new supercenters and the total new stores of all formats that the Walmart U.S. operating segment of Walmart will open in the fiscal year ending Jan. 31, 2015, the net retail square footage growth of the Walmart U.S. operating segment in the fiscal year ending Jan. 31, 2015, and the range of the capital expenditures to be made by the Walmart U.S. operating segment during the fiscal year ending Jan. 31, 2015, and certain assumptions underlying those forecasts, as well as management's expectations that the Walmart U.S. operating segment will combine thousands of points of physical access with digital retail experiences and that the small store expansion of the Walmart U.S. operating segment will strengthen its market share and create greater supply chain efficiencies 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. Those statements can be identified by the use of the word or phrase "expects," "forecast," "plans," "projects," "will also strengthen … and create," "will combine," and "will continue" in the statements.  These forward-looking statements are subject to risks, uncertainties and other factors, including:  general economic conditions; business trends and economic conditions affecting the specific markets in which Walmart may construct new units; competition from other retailers and other competitive pressures; consumer acceptance of the Walmart U.S. operating segment'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 ability of Walmart to obtain greater logistical and cost efficiencies in its supply chain; the amount of inflation or deflation that occurs; weather conditions and events and their effects; catastrophic events and natural disasters and their effects on Walmart's business; public health emergencies; civil unrest and disturbances and terrorist attacks; commodity prices; transportation costs; energy costs; the availability of appropriate locations for new units; local real estate, zoning, land use, and other laws, ordinances, legal restrictions and initiatives that may prevent Walmart from building, or that impose limitations on Walmart's ability to build, new units in certain locations; availability of persons with the skills and abilities necessary to meet Walmart's needs for managing and staffing its new units and conducting their operations; availability of necessary utilities for new units; availability of skilled labor and labor, material and other construction costs in areas in which new units are proposed to be constructed; casualty and other insurance costs; accident-related costs; and other risks.  Walmart 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 Walmart also discusses other factors that may affect its operations) and this release should be read in conjunction with that annual report on Form 10-K, together with all of Walmart'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.  Walmart 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, Walmart'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.

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Wal-Mart Stores, Inc. to Webcast 2014 International Meeting for the Investment Community from Mexico City, Mexico http://es.news.walmart.com/news-archive/2014/02/19/wal-mart-stores-inc-to-webcast-2014-international-meeting-for-the-investment-community-from-mexico-city-mexico BENTONVILLE, Ark., -- Wal-Mart Stores, Inc. (NYSE: WMT) will webcast its 2014 International meeting for the investment community on Mon., Feb. 24 from approximately 4:30 p.m. to 7:00 p.m. CST. The meeting will be held in Mexico City, Mexico. The live audio webcast, including slide presentati... Wed, 19 Feb 2014 14:00:00 GMT http://es.news.walmart.com/news-archive/2014/02/19/wal-mart-stores-inc-to-webcast-2014-international-meeting-for-the-investment-community-from-mexico-city-mexico 2014-02-19T14:00:00Z BENTONVILLE, Ark., -- Wal-Mart Stores, Inc. (NYSE: WMT) will webcast its 2014 International meeting for the investment community on Mon., Feb. 24 from approximately 4:30 p.m. to 7:00 p.m. CST. The meeting will be held in Mexico City, Mexico. The live audio webcast, including slide presentations and a question and answer session will be available in both English and Spanish through the link provided on the events portion of our corporate site or by clicking here

The transcripts from the presentations and the question and answer session will be available 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 245 million customers and members visit our 11,302 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.






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Walmart Will Hold Annual Shareholders Meeting June 6 http://es.news.walmart.com/news-archive/2014/02/10/walmart-will-hold-annual-shareholders-meeting-june-6 BENTONVILLE, Ark., Feb. 10, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that the company’s 2014 Annual Shareholders Meeting will be held on Fri., June 6, 2014, at 7 a.m. CDT in Bud Walton Arena at the University of Arkansas in Fayetteville, Ark. The meeting also will be webcast on t... Mon, 10 Feb 2014 13:00:00 GMT http://es.news.walmart.com/news-archive/2014/02/10/walmart-will-hold-annual-shareholders-meeting-june-6 2014-02-10T13:00:00Z BENTONVILLE, Ark., Feb. 10, 2014 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that the company’s 2014 Annual Shareholders Meeting will be held on Fri., June 6, 2014, at 7 a.m. CDT in Bud Walton Arena at the University of Arkansas in Fayetteville, Ark. The meeting also will be webcast on the company’s website at http://stock.walmart.com.

The company also announced that April 11, 2014, 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 245 million customers and members visit our 11,096 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

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Walmart updates FY14 underlying EPS guidance for fourth quarter and full year http://es.news.walmart.com/news-archive/2014/01/31/walmart-updates-fy14-underlying-eps-guidance-for-fourth-quarter-and-full-year BENTONVILLE, Ark., Jan. 31, 2014 -- Wal-Mart Stores, Inc. (WMT:NYSE) today updated expectations for its fourth quarter and fiscal year 2014 financial results that the company provided in its third quarter report issued on Nov. 14, 2013.  The company will release its detailed report on the fo... Fri, 31 Jan 2014 12:45:00 GMT http://es.news.walmart.com/news-archive/2014/01/31/walmart-updates-fy14-underlying-eps-guidance-for-fourth-quarter-and-full-year 2014-01-31T12:45:00Z BENTONVILLE, Ark., Jan. 31, 2014 -- Wal-Mart Stores, Inc. (WMT:NYSE) today updated expectations for its fourth quarter and fiscal year 2014 financial results that the company provided in its third quarter report issued on Nov. 14, 2013.  The company will release its detailed report on the fourth quarter and full year as scheduled on Feb. 20, 2014.

The company had provided fourth quarter diluted earnings per share from continuing operations (EPS) guidance of $1.50 to $1.60, which included a $0.10 per share impact from two discrete items, which resulted in an underlying[1] EPS guidance range of $1.60 to $1.70.  For the full year, the company expected to deliver EPS of $5.01 to $5.11 and accounting for the $0.10 of discrete items, the range for underlying EPS was between $5.11 and $5.21.

"We now anticipate that our underlying EPS for the fourth quarter of fiscal 2014 will be at or slightly below the low end of our range of $1.60 to $1.70," said Charles Holley, Wal-Mart Stores, Inc. chief financial officer.  "For the full year, we expect underlying EPS to be at or slightly below the low end of our range of $5.11 to $5.21.

"Today, we are providing updated information on previously disclosed items, as well as new additional discrete items that were not anticipated when we provided our fourth quarter and full year guidance.  These discrete items will impact EPS results for the fourth quarter and the year," said Holley.

Holley reviewed the details of these new discrete items affecting the fourth quarter results as noted below. 


[1] See additional information at the end of this release regarding the underlying EPS non-GAAP financial measure.   


Previously disclosed items impacting EPS guidance for three months ended Jan. 31, 2014


New discrete items

*Note: All EPS amounts are approximate.


Detailed explanation on discrete items



Brazil and China store closures: Approximately 50 underperforming units between these two markets were closed.

India transaction: Walmart terminated the franchise and supply agreements related to retail stores.  The estimated charge for this transaction is now approximately $0.05 per share versus the previous estimate of $0.04 per share.

Brazil non-income tax contingencies: The company is subject to tax examinations for non-income taxes in Brazil.  A number of these examinations are ongoing, and in certain cases, have resulted in assessments from taxing authorities, some of which we are currently contesting. As part of the company’s standard review process and as a result of changing conditions and circumstances, the company expects to record additional liabilities related to these loss contingencies.

Brazil employment claim contingencies: We expect to record additional charges related to employment claims.  Walmart Brazil has experienced a significant increase in employment claims in recent years as a result of company efforts to improve productivity and reduce costs.  The company has performed a detailed review of potential liabilities related to these claims, as well as a review of our historical processes and practices related to accounting for court deposits required to litigate such claims.  As a result of this review, the company expects to record charges to increase our liabilities and account for settlements of historical employment claims. 

China store lease expense charges: We identified a historical lease accounting practice that did not conform to our U.S. GAAP - based global policies.  As a result, the company expects to record a charge to conform to this accounting practice.

Sam’s Club U.S restructuring and club closure: Sam’s Club is implementing a new in-club leadership and staff structure to better align U.S. club teams with the sales volume of each club, and expects to record a charge for severance – related costs.  Additionally, one club is being closed.   
 

The guidance range of $1.50 to $1.60 provided on Nov. 14, 2013 included $0.10 per share for the store closures and India transaction.  With today's update, the additional impact on EPS from the new discrete items ($0.15) and the change on the India transaction ($0.01) are estimated to be approximately $0.16. 

In the Nov. 14 third quarter report, Walmart also provided information on the pending sale of the Vips restaurant business in Mexico by Walmart de Mexico y Centroamerica and the possible completion of the transaction in the fourth quarter of fiscal 2014. The transaction remains subject to regulatory approval and is now expected to be completed in the first quarter of fiscal 2015.  Vips is recorded in discontinued operations and the estimated future gain from the sale is expected to be approximately $0.06 per share.  


Update on U.S. segment comp sales

Walmart also provided context for the comparable sales performance of its U.S. operating segments.

"For the 14-week period ending Jan. 31, 2014, we expect both Walmart U.S. and Sam's Club comp store sales, without fuel², to be slightly negative to the guidance provided in our third quarter report," Holley said.  "Walmart U.S. guidance on Nov. 14 was for comp sales to be relatively flat, and Sam's expected comps, without fuel, to be between flat and 2 percent.

"Despite a holiday season that delivered positive comps, two factors contributed to lower comp sales performance for the 14-week period for Walmart U.S.," Holley explained.  "First, the sales impact from the reduction in SNAP (the U.S. government Supplemental Nutrition Assistance Program) benefits that went into effect Nov. 1 is greater than we expected.  And, second, eight named winter storms resulted in store closures that impacted traffic throughout the quarter.    

“Sam’s Club was also impacted by the weather throughout the quarter,” Holley added. 

The company will issue its detailed financial results for the fourth quarter and full year of fiscal 2014 and its expectations for fiscal year 2015 on Thurs., Feb. 20, 2014 at 7 a.m. Eastern Standard Time.

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 11,096 stores under 71 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.  


² See additional information at the end of this release regarding the comparable sales non-GAAP financial measure.  


Forward Looking Statements

This release contains updated statements as to Wal-Mart Stores, Inc. management's forecasts or estimates of the company's underlying diluted earnings per share from continuing operations attributable to Walmart for the three months and fiscal year ending Jan. 31, 2014, the company's diluted earnings per share from continuing operations attributable to Walmart for the three months and fiscal year ending Jan. 31, 2014 calculated by adjusting for the expected dilutive impact of:  (i) the planned closure of approximately 50 underperforming stores in Brazil and China; (ii) the end of Walmart's retail franchise and supply agreements in India; (iii) the non-income tax contingencies in Brazil; (iv) the employment claim contingencies in Brazil; (v) the lease accounting expenses in China; and (vi) the Sam's Club restructuring.  The company believes that the anticipated amount of the impact of the foregoing items on the company's diluted earnings per share from continuing operations attributable to Walmart for the three months and fiscal year ending Jan. 31, 2014, the estimated amount by which the sale of the Vips restaurant business will be accretive to diluted earnings per share from discontinued operations for the three months ending April 30, 2014, and the comparable store sales of the Walmart U.S. segment of the company and the comparable club sales, excluding fuel, of the Sam's Club segment of the company for the 14-week period from Oct. 26, 2013 through Jan. 31, 2014 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,"  "expect," "will impact," "is now,"  "expects," "is implementing," "is being closed," "are estimated," "is now expected," "is expected," and "is greater than expected" in the statements or relating to such statements.  These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including:  general economic conditions; business trends in the company's markets; economic conditions affecting specific markets in which we operate; competitive pressures; the amount of inflation or deflation that occurs, both generally and in certain product categories; consumer confidence, disposable income, credit availability, spending levels, spending patterns and debt levels; customer traffic in Walmart's stores and clubs and average ticket size; consumer acceptance of the company's merchandise offerings; the disruption of seasonal buying patterns in the United States and other markets; geo-political conditions and events; weather conditions and events and their effects; catastrophic events and natural disasters and their effects on Walmart's business; public health emergencies; civil unrest and disturbances and terrorist attacks; commodity prices; the cost of goods Walmart sells; transportation costs; the cost of diesel fuel, gasoline, natural gas and electricity; the selling prices of gasoline; disruption of Walmart's supply chain, including transport of goods from foreign suppliers; trade restrictions; changes in tariff and freight rates; labor costs; the availability of qualified labor pools in Walmart's markets; changes in employment laws and regulations; the cost of healthcare and other benefits; casualty and other insurance costs; accident-related costs; adoption of or changes in tax and other laws and regulations that affect Walmart's business, including changes in corporate tax rates; developments in, and the outcome of, legal and regulatory proceedings to which Walmart is a party or is subject and the costs associated therewith; the requirements for expenditures in connection with the FCPA matters and compliance programs; currency exchange rate fluctuations; changes in market interest rates; conditions and events affecting domestic and global financial and capital markets; the company not obtaining the necessary approvals for the sale of the Vips restaurant business in the quarter ending April 30, 2014; failure of the purchaser of the Vips restaurant business to perform its obligations regarding the purchase of the Vips restaurant business; and other risks.  Factors that may affect the company's effective tax rate include changes in the company's assessment of certain tax contingencies, valuation allowances, changes in law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings among the company's U.S. and international operations.  The company discusses certain of the factors described above more fully in certain of its filings with the SEC, including its most recent annual report on Form 10-K filed with the SEC (in which the company also discusses other factors that may affect its operations, results of operations and comparable store and club sales) and this release should be read in conjunction with that annual report on Form 10-K, together with all of the company's other filings, including its quarterly reports on Form 10-Q and current reports on Form 8-K, made with the SEC through the date of this release.  The company urges readers to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release.  As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this release.  The forward-looking statements contained in this release are as of the date of this release, and Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 

Wal-Mart Stores, Inc.
Non-GAAP Financial Measures
(Unaudited)

The following information provides reconciliation for one of the non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measure 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. The 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.  

EPS and Underlying EPS Guidance

The estimated range for the underlying diluted earnings per share from continuing operations attributable to Walmart ("Underlying EPS") for the three months and the fiscal year to end 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 estimated range of diluted earnings per share from continuing operations attributable to Walmart ("EPS") calculated in accordance with GAAP for the three months and the fiscal year to end Jan. 31, 2014. Management believes that the Underlying EPS for the three months and the fiscal year to end 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 expected to be recorded in the three months to end 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 management's expectations for Walmart's core earnings performance for the three months and the fiscal year to end Jan. 31, 2014 and the ability to make a more informed assessment of such expected 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 to end Jan. 31, 2014 by adjusting the EPS for each period for the approximate amount of the expected dilutive impact of: (1) the planned closure of approximately 50 underperforming stores in Brazil and China ("Store Closures"); (2) the end of Walmart’s retail franchise and supply agreements in India ("India Transaction"); (3) the non-income tax contingencies in Brazil  (“Brazil Taxes”); (4) the  employment claim contingencies in Brazil (“Brazil Employment Matters”); (5) the lease accounting expenses in China (“Lease Matters”); and (6) the Sam’s Club restructuring (“Sam’s Restructuring”).       

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

Underlying EPS Guidance for the Three Months to End January 31, 2014 

Diluted net income per common share: 


Underlying EPS Guidance for the Twelve Months to End January 31, 2014 
 
Diluted net income per common share: 


³ Walmart anticipates underlying EPS and EPS for each of the referenced periods to be at or slightly below each of the respective amounts consistent with the information previously reflected in this release.


Comparable Sales Measure

Projected comparable club sales of Sam's Club for the fourteen weeks ending Jan. 31, 2014 calculated by excluding Sam's Club's fuel sales for such period (the "Comparable Sales Measure") is a non-GAAP financial measure as defined by the Securities and Exchange Commission's rules.  We believe the Sam's Club's projected comparable club sales for the fourteen weeks ending Jan. 31, 2014 calculated by including fuel sales and their effects is the financial measure computed in accordance with GAAP most directly comparable to the projected comparable club sales of Sam's Club for the fourteen weeks ending Jan. 31, 2014 calculated by excluding fuel sales.  We believe that the presentation of the Comparable Sales Measure 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 for the period presented. 
]]>
David Cheesewright Named President and CEO of Walmart International http://es.news.walmart.com/news-archive/2013/12/10/david-cheesewright-named-president-and-ceo-of-walmart-international BENTONVILLE, Ark., Dec. 10, 2013 - Wal-Mart Stores, Inc. (NYSE: WMT) announced today that David Cheesewright, 51, will be promoted to president and CEO of Walmart International, the company's second largest operating segment.  Cheesewright, currently president and CEO of Walmart's Europe, Mi... Tue, 10 Dec 2013 13:00:00 GMT http://es.news.walmart.com/news-archive/2013/12/10/david-cheesewright-named-president-and-ceo-of-walmart-international 2013-12-10T13:00:00Z BENTONVILLE, Ark., Dec. 10, 2013 – Wal-Mart Stores, Inc. (NYSE: WMT) announced today that David Cheesewright, 51, will be promoted to president and CEO of Walmart International, the company’s second largest operating segment.  Cheesewright, currently president and CEO of Walmart’s Europe, Middle East and Africa (EMEA) and Canada region, will report to Doug McMillon, who was named on Nov. 25 to succeed Mike Duke as the company’s president and CEO.  Both assume their new roles on Feb. 1, 2014. Cheesewright’s successor will be named at a later date.

"David will lead the division at an exciting time," said McMillon.  "We have strengthened our business and gained market share in the majority of our international markets, and he had a key role in that success. He brings a wealth of experience and a proven track record of innovation and governance.  With his deep knowledge of the company, our customers, and our purpose, he is the ideal person to steer our next chapter of continued, long-term growth. David's passion for sustainability will drive change that will help improve our world."

"I'm honored to be named to lead our international business at a time when our customers around the world need us more than ever," said Cheesewright. "A tremendous opportunity lies ahead for our company.  Our success is dependent on our associates, and I'm committed to investing in them.  Together, we will find innovative and sustainable ways to serve our customers and provide them with the quality, affordable products they expect from us.  Through strong capital discipline, we will continue to invest in new stores and e-commerce growth, as well as productivity improvements that drive profitable growth and returns."

Cheesewright's career spans more than 25 years across the international retail and manufacturing sectors.  His Walmart career began in 1999 at Asda, the company's UK operation, where he held leadership positions in operations, merchandising, logistics, strategy and format development. He was the chief operating officer for both Walmart Canada and Asda before being named CEO of Walmart Canada.  While there, Cheesewright led the growth of the company's Canadian operations, including bringing Walmart's highly successful supercenter format to the Canadian market and expanding the company's e-commerce capabilities.  In 2011, he was named to his current position as president and CEO of Walmart's EMEA and Canada region, where he oversaw the integration of the Massmart acquisition in Sub-Saharan Africa and more aggressive growth in the UK through the Netto stores acquisition.  He helped develop and expand Asda's online grocery delivery program and serves on the board of Walmart's China e-commerce business, Yihaodian. Before his career with Walmart, Cheesewright held leadership positions in the United Kingdom with Mars Confectionery.  He holds a first-class honors joint degree in sports science and mathematics from Loughborough University, England.

Walmart's International division generates nearly 30 percent of the company's revenue, serving more than 109 million customers every week in more than 6,200 retail units under 64 banners in 26 countries outside the U.S.  In the third quarter 2013, Walmart International grew net sales to $33.1 billion. On a constant currency basis, net sales increased 4.1 percent to $34.4 billion.

NOTE: Bios and high resolution photos for download of Doug McMillon and David Cheesewright are available at: http://corporate.walmart.com.



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 11,096 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

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Doug McMillon Elected New Chief Executive Officer of Wal-Mart Stores, Inc. http://es.news.walmart.com/news-archive/2013/11/25/doug-mcmillon-elected-new-chief-executive-officer-of-wal-mart-stores-inc Bentonville, Ark., November 25, 2013 - Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its board of directors elected company veteran Doug McMillon, 47, to succeed Mike Duke, 63, as president and chief executive officer, effective February 1, 2014. McMillon was also elected to the company'... Mon, 25 Nov 2013 13:30:00 GMT http://es.news.walmart.com/news-archive/2013/11/25/doug-mcmillon-elected-new-chief-executive-officer-of-wal-mart-stores-inc 2013-11-25T13:30:00Z Bentonville, Ark., November 25, 2013 – Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its board of directors elected company veteran Doug McMillon, 47, to succeed Mike Duke, 63, as president and chief executive officer, effective February 1, 2014. McMillon was also elected to the company’s board of directors, effective immediately. 

"This leadership change comes at a time of strength and growth at Walmart," said Rob Walton, chairman of Walmart's board of directors. "The company has the right strategy to serve the changing customer around the world, and Doug has been actively involved in this process. The company has a strong management team to execute that strategy." 

Walton continued, "Doug is uniquely positioned to lead our growing global company and to serve the changing customer, while remaining true to our culture and values. He has broad experience - with successful senior leadership roles in all of Walmart's business segments - and a deep understanding of the economic, social and technological trends shaping our world. A merchant at heart, Doug has both a long history with our company and a keen sense of where our customers globally are heading next. He has also shown strong leadership on environmental sustainability and a commitment to using Walmart's size and scale to make a difference in the lives of people, wherever they might be."

"The opportunity to lead Walmart is a great privilege," McMillon said. "Our company has a rich history of delivering value to customers across the globe and, as their needs grow and change, we will be there to serve them. Our management team is talented and experienced, and our strategy gives me confidence that our future is bright. By keeping our promise to customers, we will drive shareholder value, create opportunity for our associates and grow our business."    

"Mike put in place the building blocks for the next generation Walmart and today the company is stronger, more global and more unified across all our stores, mobile and online," said Walton.  "He also reinvigorated the productivity loop and delivered strong financial performance. During his tenure the company made critical investments in talent and technology to expand Walmart to even more customers globally and stepped up its progress on social and environmental issues.  Mike also has a strong commitment to diversity, and has been especially engaged in advancing women throughout organization. He set a tone at the top to never be satisfied, to always accelerate and do better, while remaining true to the culture that has been core to the company's success."

"This is a great company and it has been an honor to help advance Sam Walton's vision of giving people around the world a better life," said Duke. "Our associates make it all possible and I've learned so much from them. No matter where I traveled, our associates continued to inspire me with their commitment to living our values, serving our customers and taking care of each other."

Duke will continue serving as chairman of the executive committee of the board and, in the tradition of his predecessors, stay on as an advisor to McMillon for one year. The company plans to make an announcement on McMillon's successor as CEO of Walmart International by the end of the fiscal year.

NOTE: Bios of Doug McMillon and Mike Duke are available at: http://corporate.walmart.com. A high resolution photo of Doug McMillon is also available for downloading from the site.

###


 

About Wal-Mart Stores, Inc. (NYSE:  WMT)
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 11,096 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.  

 
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Walmart Board of Directors Adds Former Accenture CFO Pamela Craig http://es.news.walmart.com/news-archive/2013/11/22/walmart-board-of-directors-adds-former-accenture-cfo-pamela-craig BENTONVILLE, Ark., Nov. 22, 2013 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its board of directors has appointed Pamela Craig, retired chief financial officer of Accenture, as a new member of the company's board, effective immediately. Craig became the fifteenth member of the board... Fri, 22 Nov 2013 21:30:00 GMT http://es.news.walmart.com/news-archive/2013/11/22/walmart-board-of-directors-adds-former-accenture-cfo-pamela-craig 2013-11-22T21:30:00Z BENTONVILLE, Ark., Nov. 22, 2013 -- Wal-Mart Stores, Inc. (NYSE: WMT) today announced that its board of directors has appointed Pamela Craig, retired chief financial officer of Accenture, as a new member of the company’s board, effective immediately. Craig became the fifteenth member of the board and will also serve as a member of the company’s Audit Committee.

"Pam is a well-respected leader and ideally suited to serve on Walmart's board given her extensive financial experience and her understanding of the vital role technology plays in business today," said Walmart Chairman Rob Walton.  "The domestic and global perspectives she gained during her 34 years with Accenture give her unique insight into managing a global company that will be invaluable to Walmart."

"I look forward to working with the board and executive management team and to helping Walmart maintain its retail leadership role," Craig said. "In an unpredictable global economy I believe Walmart is well-positioned for continued success through its stores and growing eCommerce business, disciplined financial approach and leadership position on important issues facing society.”

Craig, 56, has extensive experience in finance, technology and operations from her time at Accenture, a global management consulting, technology services and outsourcing company.  She served as the company's chief financial officer from October 2006 until July 1, 2013.  In that role, she was responsible for the company's Corporate Controllership, Corporate Development, Treasury, Tax, Finance Operations and Strategic Planning and Analysis.  Ms. Craig retired from Accenture on Aug. 31, 2013. 

Craig's additional leadership roles at Accenture included directing the company's office locations globally, the IT function, and travel and cross-company operations. She also managed businesses within the company's Products and Communications & High Tech operating groups. She was a member of Accenture's Global Executive Committee, Global Operating Committee, Global Management Committee, Global Leadership Council and Capital Committee.

Craig holds a master of business administration degree from New York University and a bachelor's degree with honors in economics from Smith College. She currently serves on the board of directors and as Audit Committee chair for Akamai Technologies, a leading provider of cloud optimization services, and on the board of VMware, Inc., a global leader in virtualization and cloud infrastructure. 

 

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 11,096 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.  

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Walmart reports Q3 EPS of $1.14, updates full year guidance; Aggressive holiday plans to drive sales http://es.news.walmart.com/news-archive/investors/2013/11/14/walmart-reports-q3-eps-of-114-updates-full-year-guidance-aggressive-holiday-plans-to-drive-sales Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings per share from continuing operations (EPS) of $1.14, a 6.5 percent increase compared to last year's $1.07, which reflects $0.01 per share from Vips restaurants in Mexico now in discontinued operations. The company forecaste... Thu, 14 Nov 2013 13:02:00 GMT http://es.news.walmart.com/news-archive/investors/2013/11/14/walmart-reports-q3-eps-of-114-updates-full-year-guidance-aggressive-holiday-plans-to-drive-sales 2013-11-14T13:02:00Z
  • Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings per share from continuing operations (EPS) of $1.14, a 6.5 percent increase compared to last year's $1.07, which reflects $0.01 per share from Vips restaurants in Mexico now in discontinued operations.
  • The company forecasted fourth quarter EPS guidance to range between $1.50 and $1.60. The company's guidance includes the impact of approximately $0.10 per share for certain items which we previously disclosed, including store closures in Brazil and China and ending our retail franchise agreement in India. Accounting for these factors, the company's guidance for fourth quarter underlying1 EPS is a range between $1.60 and $1.70.
  • The company updated its full year EPS guidance to range between $5.01 to $5.11. After considering certain items that will impact the fourth quarter, the company's guidance for full year underlying1 EPS will be between $5.11 and $5.21.
  • Consolidated net sales reached $114.9 billion, an increase of $1.8 billion, or 1.6 percent, led by Walmart U.S. with $67.7 billion in net sales. On a constant currency basis,1 consolidated net sales would have been $116.2 billion.
  • Consolidated operating income was $6.3 billion, an increase of 3.6 percent. Walmart U.S. grew operating income by 5.8 percent. Sam's Club grew operating income, without fuel,1 by 9.4 percent. On a constant currency basis,1 International increased operating income by 8.0 percent.
  • Walmart U.S. comp sales declined 0.3 percent in the 13-week period ended Oct. 25, 2013. Comp sales for the Neighborhood Market format rose approximately 3.4 percent. Walmart U.S. again gained market share2 in the measured category of "food, consumables and health & wellness/OTC."
  • Sam's Club comp sales, without fuel,1 were up 1.1 percent during the 13-week period.
  • Walmart International grew net sales to $33.1 billion. On a constant currency basis,1 net sales would have increased 4.1 percent to $34.4 billion.
  • Walmart reported free cash flow1 of $3.8 billion for the nine months ended Oct. 31, 2013.
  • The company returned $3.2 billion to shareholders through dividends and share repurchases in the quarter.
1 See additional information at the end of this release regarding non-GAAP financial measures.

2 Source: The Nielsen Company, 13-weeks ended Oct. 26, 2013.

BENTONVILLE, Ark.--(BUSINESS WIRE)--Nov. 14, 2013-- Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the third quarter ended Oct. 31, 2013. Net sales were $114.9 billion, an increase of 1.6 percent over last year. This quarter included the negative impact of approximately $1.6 billion from currency exchange rate fluctuations. On a constant currency basis,1 net sales would have increased 2.7 percent to $116.2 billion. Membership and other income increased 12.3 percent versus last year. Total revenue was $115.7 billion, an increase of $1.9 billion, or 1.7 percent over last year.

Consolidated net income attributable to Walmart was $3.7 billion, up 2.8 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.14, a 6.5 percent increase, compared to $1.07 last year, which reflects $0.01 per share from Vips restaurants in Mexico now in discontinued operations. In our financial statements, Vips operating results are presented in discontinued operations, both in the current and prior periods.

Solid earnings performance
"Walmart delivered solid earnings growth that was within our guidance range. We had strong operating income across our segments, with Walmart U.S. growing almost 6 percent, Sam's Club increasing more than 9 percent, and International up 8 percent on a constant currency1 basis," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer.

"Our most important priority is growing top line sales, including comp sales," Duke added. "The retail environment, both in stores and online, remains competitive. Walmart has aggressive plans to help our customers enjoy the holiday season, and there is no doubt that we plan to win for our customers and shareholders throughout the holidays."

Leverage
Two years ago, Walmart committed to reduce operating expenses as a percentage of net sales by 100 basis points by fiscal year 2017. Duke said the company remains committed to that goal.

"The company's expense leverage metric improved from last quarter. Walmart U.S. delivered strong expense leverage, and International made good progress on reducing costs in key markets," said Duke. "Throughout the company, we constantly focus on managing our costs so we can provide the low prices our customers count on."

Returns
"We managed our business well and delivered solid returns to shareholders," said Charles Holley, executive vice president and chief financial officer.

During the third quarter, the company repurchased approximately 23 million shares for $1.7 billion. In addition, the company paid $1.5 billion in dividends. In total, the company returned $3.2 billion to shareholders through dividends and share repurchases in the quarter.

Return on investment1 (ROI) for the trailing 12-months ended Oct. 31, 2013 was 17.5 percent, compared to 18.0 percent for the prior period. The decline was principally due to investments in fixed assets, growth in working capital, and the impact of acquisitions.

Free cash flow1 was $3.8 billion for the nine months ended Oct. 31, 2013, compared to $7.0 billion in the prior year. Timing of payments associated with taxes and payables, as well as higher capital expenditures were the primary drivers of the reduction.

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

Guidance
The company's guidance reflects a view of global economic trends, including ongoing headwinds from currency exchange rate fluctuations, a competitive holiday season, and a full-year effective tax rate that is expected to range between 31 and 33 percent.

"For the fourth quarter, we expect EPS to range between $1.50 and $1.60. Our guidance includes the impact of approximately $0.10 per share for certain items described below. Accounting for these factors, we believe our fourth quarter underlying1 EPS will range between $1.60 and $1.70," said Holley.

"For the full year, we are updating our EPS guidance to range between $5.01 and $5.11. Accounting for the $0.10 of certain items that will impact the fourth quarter, our full year underlying1 EPS will range between $5.11 and $5.21," added Holley.

Two items impact our guidance by approximately $0.10 per share.

  • The company is closing approximately 50 under-performing stores in Brazil and China. The impact of these closures will be dilutive to EPS by about $0.06.
  • The company will independently own and operate the wholesale format in India and will end its franchise agreement with Bharti Retail for the retail business. This transaction is subject to regulatory approval. The net impact is expected to be dilutive to EPS by approximately $0.04.
The company agreed to the sale of its Vips restaurants in Mexico, which is still subject to regulatory approval and is now recorded in discontinued operations. Outside of diluted earnings per share from continuing operations, discontinued operations for the fourth quarter is expected to include an estimated gain of $0.06 per share from the sale of Vips.

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. 25, 2013 and Oct. 26, 2012 as follows:

               
Without Fuel With Fuel Fuel Impact
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
10/25/2013     10/26/2012     10/25/2013     10/26/2012     10/25/2013     10/26/2012
Walmart U.S. -0.3%     1.5% -0.3%     1.5% 0.0%     0.0%
Sam’s Club 1.1%     2.7%     0.1%     3.8%     -1.0%     1.1%
Total U.S. -0.1%     1.7%     -0.2%     1.9%     -0.1%     0.2%
               
Without Fuel With Fuel Fuel Impact
39 Weeks Ended 39 Weeks Ended 39 Weeks Ended
10/25/2013     10/26/2012     10/25/2013     10/26/2012     10/25/2013     10/26/2012
Walmart U.S. -0.7%     2.1% -0.7%     2.1% 0.0%     0.0%
Sam’s Club 1.0%     4.1%     0.5%     4.4%     -0.5%     0.3%
Total U.S. -0.4%     2.4%     -0.5%     2.5%     -0.1%     0.1%
 
During the 13-week period, Walmart U.S. comp traffic decreased 0.4 percent, while average ticket increased 0.1 percent. E-commerce sales positively impacted comp sales by approximately 0.2 percent for the 13-week period.

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

In the third quarter period, excluding fuel,1 Sam's Club comp traffic was up 2.4 percent, while ticket was down 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.2 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.

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

        Three Months Ended   Nine Months Ended
October 31, October 31,
(dollars in billions) 2013   2012   Percent
Change

  2013   2012 Percent
Change

Walmart U.S. $ 67.692   $ 66.113   2.4 % $ 202.973   $ 199.789 1.6 %
Walmart International 33.109 33.046 0.2 % 98.839 96.922 2.0 %
Sam’s Club 14.075     13.918     1.1 %   42.478     41.933   1.3 %
Consolidated $ 114.876     $ 113.077     1.6 %   $ 344.290     $ 338.644   1.7 %
The following explanations provide additional context to the above table.

  • On a constant currency basis,1 Walmart International's net sales would have been $34.4 billion, an increase of 4.1 percent over last year. Currency exchange fluctuations negatively impacted net sales by approximately $1.6 billion in the quarter and an acquisition favorably impacted sales by $314 million.
  • Sam's Club net sales, excluding fuel,1 were $12.4 billion, an increase of 2.1 percent from last year.
  • Consolidated net sales on a constant currency basis1 would have increased 2.7 percent to $116.2 billion.
"A challenging global economy and negative currency exchange rate fluctuations impacted our sales growth in the third quarter," said Doug McMillon, Walmart International president and CEO. "In the fourth quarter, we will continue our progress on managing expenses well and staying focused on growing sales, including e-commerce. Still, the slow-growth macroeconomic environment is persisting through the first month of this quarter, and the markets continue to be competitive."

Segment operating income
Segment operating income was as follows:

           
Three Months Ended Nine Months Ended
October 31,   October 31,  
(dollars in billions) 2013   2012   Percent
Change

    2013   2012   Percent
Change

Walmart U.S. $ 5.123   $ 4.841   5.8 % $ 15.973   $ 15.122   5.6 %
Walmart International 1.457 1.432 1.7 % 4.144 4.201 -1.4%
Sam’s Club 0.474     0.434     9.2 %     1.550     1.458     6.3 %
Sam's Club (excluding fuel)

0.466     0.426     9.4 %     1.537     1.424     7.9 %
 
1 See additional information at the end of this release regarding non-GAAP financial measures.

 
"Walmart U.S. delivered almost $68 billion in net sales, and we continued to deliver strong bottom line results in a difficult sales environment," said Bill Simon, Walmart U.S. president and CEO. "Operating income grew by 5.8 percent to over $5.1 billion in the quarter."

"We're pleased with our third quarter results, especially our positive comp sales and steady increase in traffic," said Rosalind Brewer, Sam's Club president and CEO. "This led to strong growth in operating income, increasing 9.2 percent to $474 million."

U.S. comp sales forecasts
"The team has developed our best holiday plan ever. We are committed to being the number one retail destination," said Simon. "We're making sure our shelves are well-stocked with the most popular toys, and we're guaranteeing low prices all season in the store through the Christmas Ad Match Program."

For the 14-week period ending Jan. 31, 2014, Walmart U.S. expects comp store sales to be relatively flat. Last year, Walmart's comp sales rose 0.3 percent for the 14-week period ended Feb. 1, 2013.

"At Sam's Club, the holiday season is well under way, and we're investing in price for the fourth quarter," said Brewer. "Our members will be rewarded with two Instant Savings Books and an exclusive VIP event, and we've collaborated with e-commerce to provide the best online program we've ever had."

Sam's Club expects comp sales, excluding fuel,1 for the 14-week period ending Jan. 31, 2014 to range between flat and 2 percent. Last year comp sales, excluding fuel,1 increased 1.8 percent for the 14-week period ended Feb. 1, 2013.

Walmart U.S. and Sam's Club will report comparable sales for the 14-week period ending Jan. 31, 2014 on Feb. 20, 2014, when the company reports fourth quarter results. For fiscal year 2014, Walmart will report comparable store sales on a 53-week basis, with 4-5-5 week reporting for the fourth quarter.

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online, and through their mobile devices. Each week, more than 245 million customers and members visit our 11,096 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

Notes
After this earnings release has been furnished to the Securities and Exchange Commission (SEC), a pre recorded call offering additional comments on the quarter will be available to all investors. Information included in this release, including reconciliations, and the pre-recorded phone call can be accessed via webcast by visiting the investor information area on the company's website at www.stock.walmart.com. 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., Sam's Club and International operations are available for download at www.stock.walmart.com

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

Forward Looking Statements
This release contains statements as to Wal-Mart Stores, Inc. management's forecasts or estimates of the company's diluted earnings per share from continuing operations attributable to Walmart for the three months and fiscal year ending Jan. 31, 2014, the company’s underlying diluted earnings per share from continuing operations attributable to Walmart for the three months and fiscal year ending Jan. 31, 2014 calculated by adjusting for the anticipated effect on the company’s diluted earnings per share from continuing operations attributable to Walmart for the three months ending Jan. 31, 2014 of the ending of the company’s retail franchise agreement in India and the closure of certain stores in Brazil and China, which are expected to occur during the three months ending Jan 31, 2014, the anticipated amount of the impact of such items on the company’s diluted earnings per share from continuing operations attributable to Walmart for the three months ending Jan. 31, 2014, the estimated amount by which the sale of the Vips restaurant business will be accretive to diluted earnings per share from discontinued operations for the three months ending Jan. 31, 2014, the company’s effective tax rate for the fiscal year ending Jan. 31, 2014, the comparable store sales of the Walmart U.S. segment of the company and the comparable club sales, excluding fuel, of the Sam's Club segment of the company for the 14-week period from Oct. 26, 2013 through Jan. 31, 2014, and certain assumptions on which those forecasts and estimates are based, as well as statements of the company’s objective to reduce its operating expenses as a percentage of net sales by 100 basis points by Jan 31, 2017 and of management's expectations for the company’s Walmart International segment continuing its progress in managing its expenses well and staying focused on growing sales, including e-commerce, and the company's Sam's Club segment providing Instant Savings Books and a VIP event to certain of its members in the 2013 holiday season 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 updating," "anticipate," "estimated," "expect," "expected," "expects," "forecast," "goal," "guidance," "is expected," "will be," "will continue," and "will range" in the statements or relating to such statements. These forward-looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including: general economic conditions; business trends in the company's markets; economic conditions affecting specific markets in which we operate; competitive pressures; the amount of inflation or deflation that occurs, both generally and in certain product categories; consumer confidence, disposable income, credit availability, spending levels, spending patterns and debt levels; consumer demand for certain merchandise in the 2013 holiday season; customer traffic in Walmart's stores and clubs and average ticket size; consumer acceptance of the company's merchandise offerings; the disruption of seasonal buying patterns in the United States and other markets; geo-political conditions and events; weather conditions and events and their effects; catastrophic events and natural disasters and their effects on Walmart's business; public health emergencies; civil unrest and disturbances and terrorist attacks; commodity prices; the cost of goods Walmart sells; transportation costs; the cost of diesel fuel, gasoline, natural gas and electricity; the selling prices of gasoline; disruption of Walmart's supply chain, including transport of goods from foreign suppliers; trade restrictions; changes in tariff and freight rates; labor costs; the availability of qualified labor pools in Walmart's markets; changes in employment laws and regulations; the cost of healthcare and other benefits; casualty and other insurance costs; accident-related costs; adoption of or changes in tax and other laws and regulations that affect Walmart's business, including changes in corporate tax rates; developments in, and the outcome of, legal and regulatory proceedings to which Walmart is a party or is subject and the costs associated therewith; the requirements for expenditures in connection with the FCPA matters, 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; the company not obtaining in the three months ending Jan. 31, 2014 the necessary approvals for the sale of the Vips restaurant business and the ending of the company’s retail franchise agreement in India; failure of the purchaser of the Vips restaurant business to perform its obligations regarding the purchase of the Vips restaurant business; delays in the closure of the stores in Brazil and China proposed to be closed in the quarter ending Jan. 31, 2014; and other risks. Factors that may affect the company's effective tax rate include changes in the company's assessment of certain tax contingencies, valuation allowances, changes in law, outcomes of administrative audits, the impact of discrete items, and the mix of earnings among the company's U.S. and international operations. The company discusses certain of the factors described above more fully in certain of its filings with the SEC, including its most recent annual report on Form 10-K filed with the SEC (in which the company also discusses other factors that may affect its operations, results of operations and comparable store and club sales) and this release should be read in conjunction with that annual report on Form 10-K, together with all of the company's other filings, including its quarterly reports on Form 10-Q and current reports on Form 8-K, made with the SEC through the date of this release. The company urges readers to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this release. The forward-looking statements contained in this release are as of the date of this release, and Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.



 
Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

           
Three Months Ended Nine Months Ended
SUBJECT TO RECLASSIFICATION October 31, October 31,
(Dollars in millions, except share data) 2013     2012     Percent
Change

2013     2012     Percent
Change

Revenues:
Net sales $ 114,876 $ 113,077 1.6 % $ 344,290 $ 338,644 1.7 %
Membership and other income 812   723   12.3 % 2,298   2,231   3.0 %
Total revenues 115,688 113,800 1.7 % 346,588 340,875 1.7 %
Costs and expenses:
Cost of sales 86,687 85,470 1.4 % 260,098 256,226 1.5 %
Operating, selling, general and administrative expenses 22,691   22,237   2.0 % 66,965   65,504   2.2 %
Operating income 6,310 6,093 3.6 % 19,525 19,145 2.0 %
Interest:
Debt 527 522 1.0 % 1,556 1,512 2.9 %
Capital leases 65 68 (4.4 )% 198 205 (3.4 )%
Interest income (12 ) (44 ) (72.7 )% (92 ) (131 ) (29.8 )%
Interest, net 580   546   6.2 % 1,662   1,586   4.8 %
Income from continuing operations before income taxes 5,730 5,547 3.3 % 17,863 17,559 1.7 %
Provision for income taxes 1,860   1,738   7.0 % 5,856   5,718   2.4 %
Income from continuing operations 3,870 3,809 1.6 % 12,007 11,841 1.4 %
Income from discontinued operations, net of income taxes 15   16   6.3 % 38   39   2.6 %
Consolidated net income 3,885 3,825 1.6 % 12,045 11,880 1.4 %
Less consolidated net income attributable to noncontrolling interest (147 ) (190 ) (22.6 )% (454 ) (487 ) (6.8 )%
Consolidated net income attributable to Walmart $ 3,738   $ 3,635   2.8 % $ 11,591   $ 11,393   1.7 %
 
Income from continuing operations attributable to Walmart:
Income from continuing operations $ 3,870 $ 3,809 1.6 % $ 12,007 $ 11,841 1.4 %
Less income from continuing operations attributable to noncontrolling interest (143 ) (185 ) (22.7 )% (443 ) (475 ) (6.7 )%
Income from continuing operations attributable to Walmart $ 3,727   $ 3,624   2.8 % $ 11,564   $ 11,366   1.7 %
 
 
Basic net income per common share:
Basic net income per common share from continuing operations attributable to Walmart $ 1.14 $ 1.08 5.6 % $ 3.52 $ 3.35 5.1 %
Basic net income per common share from discontinued operations attributable to Walmart $ 0.01     100.0 % 0.01   0.02   (50.0 )%
Basic net income per common share attributable to Walmart $ 1.15   $ 1.08   6.5 % $ 3.53   $ 3.37   4.7 %
 
Diluted net income per common share:
Diluted net income per common share from continuing operations attributable to Walmart $ 1.14 $ 1.07 6.5 % $ 3.51 $ 3.34 5.1 %
Diluted net income per common share from discontinued operations attributable to Walmart   0.01   (100.0 )% 0.01   0.01   %
Diluted net income per common share attributable to Walmart $ 1.14   $ 1.08   5.6 % $ 3.52   $ 3.35   5.1 %
 
Weighted-average common shares outstanding:
Basic 3,257 3,364 3,279 3,385
Diluted 3,271 3,379 3,293 3,400
 
Dividends declared per common share $ $ $ 1.88 $ 1.59


               
Wal-Mart Stores, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 
SUBJECT TO RECLASSIFICATION
(Dollars in millions) October 31, January 31, October 31,
ASSETS 2013 2013 2012
Current assets:
Cash and cash equivalents $ 8,736 $ 7,781 $ 8,643
Receivables, net 6,206 6,768 5,567
Inventories 49,673 43,803 47,487
Prepaid expenses and other 2,160 1,588 1,654
Current assets of discontinued operations 367     80  
Total current assets 67,142 59,940 63,431
Property and equipment:
Property and equipment 170,967 165,825 163,011
Less accumulated depreciation (56,313 ) (51,896 ) (50,450 )
Property and equipment, net 114,654 113,929 112,561
Property under capital leases:
Property under capital leases 5,668 5,899 5,900
Less accumulated amortization (3,095 ) (3,147 ) (3,208 )
Property under capital leases, net 2,573 2,752 2,692
 
Goodwill 19,729 20,497 20,572
Other assets and deferred charges 5,778   5,987   6,562  
Total assets $ 209,876   $ 203,105   $ 205,818  
 
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings $ 12,817 $ 6,805 $ 8,740
Accounts payable 39,221 38,080 40,272
Dividends payable 1,573 1,381
Accrued liabilities 18,606 18,808 18,536
Accrued income taxes 255 2,211 1,010
Long-term debt due within one year 4,147 5,587 6,550
Obligations under capital leases due within one year 315 327 331
Current liabilities of discontinued operations 87     25  
Total current liabilities 77,021 71,818 76,845
 
Long-term debt 41,702 38,394 38,872
Long-term obligations under capital leases 2,841 3,023 2,964
Deferred income taxes and other 8,298 7,613 8,044
Redeemable noncontrolling interest 1,492 519 492
 
Commitments and contingencies
 
Equity:
Common stock 324 332 336
Capital in excess of par value 2,364 3,620 3,861
Retained earnings 72,888 72,978 70,256
Accumulated other comprehensive income (loss) (2,183 ) (587 ) (562 )
Total Walmart shareholders’ equity 73,393 76,343 73,891
Nonredeemable noncontrolling interest 5,129   5,395   4,710  
Total equity 78,522   81,738   78,601  
Total liabilities and equity $ 209,876   $ 203,105   $ 205,818  


       
Wal-Mart Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
Nine Months Ended
SUBJECT TO RECLASSIFICATION October 31,
(Dollars in millions) 2013       2012
Cash flows from operating activities:
Consolidated net income $ 12,045 $ 11,880
Income from discontinued operations, net of income taxes (38 ) (39 )
Income from continuing operations 12,007 11,841
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 6,600 6,304
Deferred income taxes 594 279
Other operating activities 465 138
Changes in certain assets and liabilities:
Receivables, net 191 501
Inventories (6,230 ) (6,459 )
Accounts payable 2,089 3,545
Accrued liabilities (95 ) (82 )
Accrued income taxes (2,301 ) (160 )
Net cash provided by operating activities 13,320 15,907
 
Cash flows from investing activities:
Payments for property and equipment (9,506 ) (8,921 )
Proceeds from the disposal of property and equipment 521 343
Investments and business acquisitions, net of cash acquired (15 ) (716 )
Other investing activities 58   (58 )
Net cash used in investing activities (8,942 ) (9,352 )
 
Cash flows from financing activities:
Net change in short-term borrowings 6,046 4,700
Proceeds from issuance of long-term debt 7,053 199
Payments of long-term debt (4,943 ) (639 )
Dividends paid (4,625 ) (4,034 )
Purchase of Company stock (5,806 ) (4,657 )
Other financing activities (960 ) (263 )
Net cash used in financing activities (3,235 ) (4,694 )
 
Effect of exchange rates on cash and cash equivalents (188 ) 232  
 
Net increase in cash and cash equivalents 955 2,093
Cash and cash equivalents at beginning of year 7,781   6,550  
Cash and cash equivalents at end of period $ 8,736   $ 8,643  
 
Wal-Mart Stores, Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial Measures
(Unaudited)
(In millions, except per share data)

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

Calculation of Return on Investment and Return on Assets

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

ROI was 17.5 percent and 18.0 percent for the trailing twelve months ended October 31, 2013 and 2012, respectively. The decline was principally due to investments in fixed assets, growth in working capital, and the impact of acquisitions.

We define ROI as adjusted operating income (operating income plus interest income, depreciation and amortization, and rent expense) for the trailing twelve 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 twelve 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 net income for the period divided by average total assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital.

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

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

 
Wal-Mart Stores, Inc.
Return on Investment and Return on Assets
         
Trailing Twelve Months Ended
October 31,
(Dollars in millions) 2013       2012
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 28,181 $ 27,546
+ Interest income 148 162
+ Depreciation and amortization 8,797 8,367
+ Rent 2,688   2,560  
Adjusted operating income $ 39,814   $ 38,635  
 
Denominator
Average total assets of continuing operations1 $ 207,624 $ 200,447
+ Average accumulated depreciation and amortization1 56,533 50,382
- Average accounts payable1 39,747 38,914
- Average accrued liabilities1 18,571 17,713
+ Rent x 8 21,504   20,480  
Average invested capital $ 227,343   $ 214,682  
Return on investment (ROI) 17.5 % 18.0 %
 
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 17,922   $ 17,278  
Denominator
Average total assets of continuing operations1 $ 207,624   $ 200,447  
Return on assets (ROA) 8.6 % 8.6 %
 
As of October 31,
Certain Balance Sheet Data 2013 2012 2011
Total assets of continuing operations2 $ 209,509 $ 205,738 $ 195,155
Accumulated depreciation and amortization 59,408 53,658 47,106
Accounts payable 39,221 40,272 37,555
Accrued liabilities 18,606 18,536 16,890
 
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.

 

 
2 Total assets of continuing operations as of October 31, 2013, 2012 and 2011 in the table above exclude assets of discontinued operations that are reflected in the Company's Condensed Consolidated Balance Sheets of $367 million, $80 million and $89 million, respectively.



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 $3.8 billion and $7.0 billion for the nine months ended October 31, 2013 and 2012, respectively. Timing of payments associated with taxes and payables, as well as higher capital expenditures were the primary drivers of the reduction.

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

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

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

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

        Nine Months Ended
October 31,
(Dollars in millions) 2013       2012
Net cash provided by operating activities $ 13,320 $ 15,907
Payments for property and equipment (9,506 ) (8,921 )
Free cash flow $ 3,814   $ 6,986  
 
Net cash used in investing activities1 $ (8,942 ) $ (9,352 )
Net cash used in financing activities $ (3,235 ) $ (4,694 )
 
1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.

 
Constant Currency

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

The table below reflects the calculation of constant currency for net sales and operating income for the three and nine months ended October 31, 2013.

        Three Months Ended
October 31, 2013

    Nine Months Ended
October 31, 2013

International     Consolidated   International     Consolidated  
(Dollars in millions) 2013     Percent
Change

2013     Percent
Change

2013     Percent
Change

2013     Percent
Change

Net sales:
As reported $ 33,109 0.2 % $ 114,876 1.6 % $ 98,839 2.0 % $ 344,290 1.7 %
Currency exchange rate fluctuations1 1,622     1,622     3,324     3,324    
34,731 116,498 102,163 347,614
Net sales from acquisitions (314 )   (314 )   (730 )   (730 )  
Constant currency net sales $ 34,417   4.1 % $ 116,184   2.7 % $ 101,433   4.7 % $ 346,884   2.4 %
 
Operating income:
As reported $ 1,457 1.7 % $ 6,310 3.6 % $ 4,144 (1.4 )% $ 19,525 2.0 %
Currency exchange rate fluctuations1 16     16     (10 )   (10 )  
1,473 6,326 4,134 19,515
Operating loss from acquisitions 74     74     156     156    
Constant currency operating income $ 1,547   8.0 % $ 6,400   5.0 % $ 4,290   2.1 % $ 19,671   2.7 %
 
1 Excludes currency exchange rate fluctuations related to acquisitions until the acquisitions are included in both comparable periods.

 
EPS and Underlying EPS Guidance

The estimated range for the underlying diluted earnings per share from continuing operations attributable to Walmart ("Underlying EPS") for the three months and the fiscal year to end 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 estimated range of diluted earnings per share from continuing operations attributable to Walmart ("EPS") calculated in accordance with GAAP for the three months and the fiscal year to end Jan. 31, 2014. Management believes that the Underlying EPS for the three months and the fiscal year to end 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 expected to be recorded in the three months to end 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 management’s expectations for Walmart’s core earnings performance for the three months and the fiscal year to end Jan. 31, 2014 and the ability to make a more informed assessment of such expected 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 range of Underlying EPS for the three months and the fiscal year to end Jan. 31, 2014 by adding to the range of EPS for each such period the approximate amount of the expected dilutive impact of: (1) the ending of Walmart’s retail franchise agreement in India (the "India Transaction"); and (2) the planned closure of approximately 50 under-performing stores in Brazil and China (the "Store Closures") on EPS for the three months to end Jan. 31, 2014.

EPS for the three months and the fiscal year to end Jan. 31, 2014 is the financial measure calculated in accordance with GAAP that is most directly comparable to the Underlying EPS for the three months and the fiscal year to end Jan. 31, 2014, respectively. The calculation of the Underlying EPS for each such period and the reconciliation of the Underlying EPS for each such period to EPS for such period are as follows:

        EPS Guidance for the Three Months to End January 31, 2014
      Adjustments to EPS Guidance      
EPS     Store Closures     India Transaction     Underlying EPS
Diluted net income per common share:            
Diluted income per common share from continuing operations attributable to Walmart 1.50 - 1.60     0.06     0.04 1.60 - 1.70
          EPS Guidance for the Twelve Months to End January 31, 2014
      Adjustments to EPS Guidance      
EPS     Store Closures     India Transaction     Underlying EPS
Diluted net income per common share:            
Diluted income per common share from continuing operations attributable to Walmart 5.01 - 5.11 0.06     0.04 5.11 - 5.21
Comparable Sales Measures and Sam's Club Measures

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

  • the comparable club sales of the company's Sam's Club operating segment ("Sam's Club") for the thirteen-week and thirty-nine week periods ended Oct. 25, 2013 and Oct. 26, 2012, projected comparable club sales of Sam's Club for the fourteen weeks ending Jan. 31, 2014 and comparable club sales of Sam's Club for the fourteen weeks ended Feb. 1, 2013, in each case calculated by excluding Sam's Club's fuel sales for such periods (the "Comparable Sales Measures");
  • the net sales of Sam's Club for the three months and nine months ended Oct. 31, 2013 and the percentage increase in the net sales of Sam's Club for the three months and nine months ended Oct. 31, 2013 over the net sales Sam's Club for the three months and nine months ended Oct. 31, 2012, in each case calculated by excluding Sam's Club's fuel sales for the relevant period; and
  • the segment operating income of Sam's Club for the three months and nine months ended Oct. 31, 2013 and 2012 and the percentage increase in the segment operating income of Sam's Club for the three months and nine months ended Oct. 31, 2013 over the segment operating income of Sam's Club for the three months and nine months ended Oct. 31, 2012, in each case calculated by excluding Sam's Club's fuel sales for the relevant period.
The measures described in the second and third bullet points above are referred to herein as the "Sam's Club Measures."

We believe the Sam's Club's comparable club sales for the historical periods for which the corresponding Comparable Sales Measures are presented calculated by including fuel sales and their effects are the financial measures computed in accordance with GAAP most directly comparable to the respective Comparable Sales Measures. We believe the Sam's Club's projected comparable club sales for the fourteen weeks ending Jan. 31, 2014 calculated by including fuel sales and their effects is the financial measure computed in accordance with GAAP most directly comparable to the projected comparable club sales of Sam's Club for the fourteen weeks ending Jan. 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 Comparable Sales Measures.

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





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)
Passcode: 9256278 (Walmart)



]]>
Walmart announces $11.8 to $12.8 billion FY2015 global capital expenditure plan http://es.news.walmart.com/news-archive/2013/10/15/walmart-announces-118-to-128-billion-fy2015-global-capital-expenditure-plan Wal-Mart Stores, Inc. (Walmart) expects capital investments to range between $11.8 and $12.8 billion for fiscal year 2015.  This range includes a $200 million reduction from the current fiscal year 2014 capital guidance.  The company will add between 33 and 37 million net retail square... Tue, 15 Oct 2013 19:00:00 GMT http://es.news.walmart.com/news-archive/2013/10/15/walmart-announces-118-to-128-billion-fy2015-global-capital-expenditure-plan 2013-10-15T19:00:00Z
  • Wal-Mart Stores, Inc. (Walmart) expects capital investments to range between $11.8 and $12.8 billion for fiscal year 2015.  This range includes a $200 million reduction from the current fiscal year 2014 capital guidance. 
    • The company will add between 33 and 37 million net retail square feet worldwide next year, with more than half of the increase driven by Walmart U.S., including accelerated small format openings.
    • The capital plan includes increased investments in technology and e-commerce.  
    • The company maintains its fiscal year 2014 capital forecast of $12.0 to $13.0 billion and reduces its total retail square footage plan to approximately 34 million.  Walmart International announced a $500 million reduction from its current plan due to fewer new store openings, resulting in a reduction of approximately 7 million square feet. 
    • Walmart U.S. accelerates small format openings and e-commerce fulfillment centers, and increases its fiscal year 2014 projected capital investment by $500 million to a range of $6.0 to $6.5 billion.   The segment is projecting fiscal year 2015 capital investments to be lower than the updated current year forecast, but with greater square footage.

    BENTONVILLE, Ark., Oct. 15, 2013
    -- Wal-Mart Stores, Inc. (NYSE: WMT) today presented its capital expenditure plans for the next fiscal year ending Jan. 31, 2015 at its 20th annual conference for the investment community. Total capital spending for fiscal year 2015 is projected to range between $11.8 and $12.8 billion, $200 million lower than the revised fiscal year 2014 projection.

    "Our underlying businesses are solid, and we are pleased that we will add approximately 34 million net new square feet of retail space this year, even with a tough and unpredictable economy.  This is incremental to the more than 1 billion square feet of retail space Walmart operated around the world at the end of last year," said Wal-Mart Stores, Inc. President and CEO Mike Duke. "We're spending in a disciplined manner by setting up a more streamlined real estate process.  We continue to improve our sales per square foot and Walmart will continue to grow through new stores and e-commerce, while expanding our logistics and fulfillment network in critical markets."

    The company forecasts that net sales for the current fiscal year will range between $475 and $480 billion. The company reported total revenue of $231.1 billion through the second quarter ended July 31, 2013.

    Charles Holley, Walmart's executive vice president and chief financial officer, outlined the company's commitment to its financial priorities for growth, leverage and returns, and detailed the investment and expansion plan for fiscal year 2015.  Walmart uses its operating cash flow to drive growth through stores and e-commerce, strategic acquisitions, dividends and share repurchases.

    "We continue to make progress on capital efficiency, finding new ways to reduce construction costs for new stores and remodels and shortening the timeframe from approval to opening," Holley explained. "Over the last three years, we delivered more with less, while growing square footage, sales and shareholder returns." 

    Holley pointed out that the capital dedicated to technology and e-commerce is growing.

    "Technology is our fastest growing area for capital expenditures," he explained.  "We define technology investments as systems and Global e-Commerce capital dollars.  We will increase our technology spend 70 percent from fiscal year 2009 through fiscal year 2014.  Next year, investments in this area will increase another 12 percent.

     "Walmart plans to grow company net sales 3 to 5 percent in fiscal year 2015, which is projected to increase net sales by $14 to $24 billion.  We expect to add another 33 to 37 million net retail square feet around the world next year," Holley said.  "In terms of leverage, our operating income will grow at the same rate, or faster, than sales due to our continued focus on operating expense discipline.  Generating strong free cash flow remains a key priority."

    Capital Expenditure Details for Fiscal Year 2015

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

    Capital Expenditure Detail
    (US$ billions)    

    Segment
    Actual
    FY 13
    FY 14
    Original
    FY 14
    Revised
    FY 15
    Projected
    Walmart U.S.
    $6.0
    $5.5 – 6.0
    $6.0 – 6.5
    $5.8 6.3
    Sam’s Club U.S.
    $0.9
    ~$1.0
    ~$1.0
    ~$1.0
    Walmart International
    $4.6
    $4.5 – 5.0
    $4.0 – 4.5
    $4.0 4.5
    Corporate & support
    $1.4
    ~$1.0
    ~$1.0
    ~$1.0
    Total
    $12.9
    ~$12.0 13.0
    ~$12.0 13.0
    ~$11.8 – 12.8

     For fiscal year 2014, Walmart now expects to add approximately 34 million net retail square feet globally, compared to the company's original square footage guidance, provided Oct. 10, 2012, of 36 to 40 million square feet.  Today's revision in projected retail square footage growth is driven by a reduction in new store openings within Walmart International, partially offset by an increase in Walmart U.S. new stores.  In fiscal year 2015, the company plans to add between 33 and 37 million net retail square feet, reflecting aggressive growth across its businesses.   Net retail square footage growth (excluding any future acquisitions) is projected as follows:


    Net Retail Square Footage
    (in millions)
    Segment
    Actual
    FY 13
    FY 14 
    Original 
    FY 14
    Revised
    FY15                           Projected
    Walmart U.S.
    14
    ~15 – 17
    ~18
    ~19 – 21
    Sam’s Club U.S.
    1.1
    ~1
    ~2
    ~2
    Walmart International
    19.4
    ~20 – 22
    ~14
    ~12 - 14
    Total
    34.5
    ~36 40
    ~34
    ~33 - 37

    Projected Walmart U.S. and Sam's Club U.S. units include new stores, expansions and relocations. Given the conversion of Walmart discount stores to supercenters, the number of supercenter units will continue to increase, as the number of discount stores declines. Unit growth in the United States is projected as follows:

    Total U.S. Unit Growth
    (Gross)
    Segment
    Actual
    FY 13
    FY 14 
    Original 
    FY 14
    Revised
    FY 15             Projected
    Large formats
    136
    ~125
    ~125
    ~115
    Small formats
    79
    ~95-115
    ~120
    ~120 - 150
    Total Walmart U.S.
    215
    ~220-240
    ~245
    ~235 - 265
    Sam’s Club U.S.
    14
    ~12-20
    ~19 - 21
    ~17 - 22
    Total
    229
    ~232 - 260
    ~264 - 266
    ~252 - 287

    Walmart U.S. Details


    Compared to last October's forecast, Walmart U.S. increased its fiscal 2014 projected capital investment by $500 million to a range of $6.0 to $6.5 billion, due to an acceleration of small format openings, especially Neighborhood Markets, and e-commerce initiatives.  As a result of this more aggressive plan, Walmart plans to end fiscal year 2014 with square footage growth of approximately 18 million net retail square feet versus its original projection of approximately 15 to 17 million square feet.

    Fiscal year 2015 capital investments are projected to be $200 million lower than this updated current year estimate.  The forecast includes new stores, remodels, logistics and technology infrastructure, and is designed to add new units that will expand its retail space by approximately 19 to 21 million net retail square feet next year. Walmart U.S. will build approximately 120 to 150 small format stores next fiscal year. 

    "We will accelerate growth of our Neighborhood Markets because of their strong returns, consistent comp sales performance and double-digit net sales increases," said Bill Simon, Walmart U.S. president and CEO.  "We will continue to build and leverage the supercenter format, which remains our primary format for growth.  We plan to open approximately 115 supercenters next year, including relocations and expansions.  The combination of our large and small store formats allow us to strengthen our market share position and give customers convenient access to shop for food and general merchandise, as well as access to our e-commerce offerings. 

    “We believe our multi-format portfolio will fuel the next generation of retail, enable the convergence of digital and physical store locations through e-commerce and unlock value, giving our customers anytime, anywhere access to Walmart,” added Simon.  “We are positioned for sustainable growth and are the only company with a unique combination of large supercenters, small formats and a dotcom and mobile presence.” 

    Sam’s Club Details

    Sam's Club maintains its capital spend for the current fiscal year at approximately $1 billion.  The segment will add approximately 19 to 21 clubs, including relocations and expansions in fiscal year 2014, up from 14 last year.  Sam's is also remodeling more than 70 clubs this year.

    "The new clubs we've opened this year are outperforming our expectations and we will continue to increase our openings.  Our fleet is in the best position and condition it has been in years," said Sam's Club president and CEO Rosalind Brewer.  "We improved our construction cost structure, and with the productivity initiatives in place and consistent layouts, we are opening clubs that cost less to run and improve the shopping experience for our members." 

    During fiscal year 2015, Sam's Club will open approximately 17 to 22 clubs, including relocations and expansions.  Remodeling is slated for between 55 and 60 clubs.  Sam's is projecting a capital budget of approximately $1 billion, in line with its updated plan for fiscal year 2014.

    Walmart International Details

    Walmart International decreased its fiscal year 2014 projected capital investments by $500 million to a range of $4.0 to $4.5 billion, due to fewer new store openings in Mexico and India.  In addition, International plans to close approximately 50 underperforming stores in Brazil and China.  The majority of the closures will occur in the fourth quarter of fiscal year 2014.  International now expects to add approximately 14 million net retail square feet, roughly 7 million square feet below its original guidance of 20 to 22 million square feet.  

    Walmart International continues to invest in organic growth across its markets and expects fiscal year 2015 capital expenditures to range from $4.0 to $4.5 billion, which will generate approximately 12 to 14 million net retail square feet among its 26 markets.

     "We've made progress on having everyday low price in every market, and we are improving our new store performance and e-commerce capabilities," said Walmart International president and CEO Doug McMillon.  "We are confident that with disciplined growth and greater e-commerce integration in our business, we will have in place a solid framework for long-term growth and improved returns.

    "Our guidance for fiscal year 2015 reflects actions to continue strengthening our position in markets like China and Brazil," McMillon added.  "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 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. The company made a number of smaller acquisitions during this fiscal year to strengthen technology expertise and add talent. 

    "We are delivering value to Walmart through revenue growth and engaging millions more customers," said Ashe. "We made significant progress globally during the past year by driving relevant offers and experiences, building a broader assortment and innovating through Big Data, social and mobile capabilities.  Looking ahead, we will continue to invest significantly in our global technology platform, next generation fulfillment network and the best talent."

    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 more than 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com

    Forward-looking statement
    This release contains statements that Walmart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. Except as noted below, these forward-looking statements are identified by use of the words or phrases "accelerates," "are projected," "capital plan," "decreased," "expect," "expects," "forecast," "forecasts," "guidance," "increased," "increases," "is projected," "is projecting," "is slated," "maintains," "plan," "plans," "priorities," "projected," "reduces," "reduction," "will accelerate," "will add," "will build," "will continue," "will expand," "will generate," "will grow," "will increase," "will occur," and "will open" or a variation of the foregoing words or phrases in these statements, in the descriptions of certain assumptions on which expectations, forecasts or projections discussed in this release are based. The forward-looking statements discuss, among other things: management's revised expectations for the capital expenditures (also referred to as "capital investments," "capital spending," the "capital plan" and the "capital budget") in fiscal year 2014 (which are revised from the company's previously announced projections for capital expenditures for fiscal year 2014) and fiscal year 2015 for the total company, for each of its operating segments (including projected differences from previously announced projections for the company and the company's Walmart U.S. and Walmart International operating segments) and for corporate and other purposes; management's projections for the growth in and addition of retail square footage for the total company and each of the company's operating segments (including projected differences from previously announced projections for the company and the company's Walmart U.S., Walmart International and Sam's Club operating segments) in fiscal year 2014 (which are revised from the company's previously announced projections for square footage growth for fiscal year 2014) and fiscal year 2015; management's projections for unit growth in the company's Walmart U.S. and Sam's Club operating segments in the United States in fiscal year 2014 (which are revised from the company's previously announced projections for unit growth in the United States for fiscal year 2014) and fiscal year 2015, including for larger and smaller formats within the Walmart U.S. operating segment; management's projections for the company's net sales in fiscal year 2014 and fiscal year 2015, including the percentage and amount of growth in net sales compared to fiscal year 2014; management's expectations that the company's operating income will grow at the same rate, or faster than, the company's sales; management's expectation that the fiscal year 2014 and 2015 capital plans will include increased investments in technology and e-commerce; projected increases in the company's technology spend from fiscal year 2009 through fiscal year 2014; management's expectations that the company will grow through new stores and e-commerce, while expanding its logistics and fulfillment network in critical markets; management's expectation that the number of supercenters operated by the Walmart U.S. operating segment will continue to increase and the number of discount stores operated by the Walmart U.S. operating segment will decline; the number of new small format stores to be opened by the Walmart U.S. operating segment in fiscal year 2015; management's expectation that the Walmart U.S. operating segment will accelerate growth of the Neighborhood Market format and will continue to build and leverage its supercenter format; management's expectation for the number of new supercenters, including relocations and expansions, that the Walmart U.S. operating segment will open in fiscal year 2015; management's expectation for the company's Sam's Club operating segment to open a certain number of new clubs and to continue to increase the openings of new clubs; the number of clubs, including relocations and expansions, the company's Sam's Club operating segment will open in fiscal year 2015; the number of remodels the company's Sam's Club operating segment will complete in fiscal year 2015; management's expectations that the company's Walmart International operating segment will close a certain number of underperforming stores in Brazil and China and that a certain number of those closures will occur in the fourth quarter of fiscal year 2014; management's expectation that the company's operating segments will continue to invest significantly in the company's global technology platform, next generation fulfillment network and the best talent in the e-commerce area; and the various factors and circumstances that will drive or influence certain of such expectations, forecasts and projections.  Also included in the forward-looking statements in this release are certain statements regarding the company's priorities and focus on certain matters, including its priorities of growth, including comparable store and club sales growth, leverage, including leverage initiatives, and returns, including returns at the company's Walmart International operating segment and free cash flow.  The forward-looking statements in this release also include the information contained in the charts entitled "Capital Expenditure Detail," "Net Retail Square Footage," and "Total U.S. Unit Growth," which information relates to capital expenditures to be made, square footage growth and units to be added in the United States during each of fiscal year 2014 (which information is revised from previously announced projections in regard to such measures for fiscal year 2014) and fiscal year 2015.  These forward-looking statements and the information in the charts described above are subject to risks, uncertainties and other factors, domestically and internationally, including general economic conditions, including the effects of the current economic situation, competitive pressures, geopolitical conditions and events, inflation, deflation, consumer confidence, credit availability, spending patterns and debt levels, currency exchange fluctuations, unemployment and partial employment rates, personal income and other tax rates, trade restrictions, availability of attractive investment opportunities in non-United States markets, availability of appropriate locations for new or relocated units, local real estate and other laws, ordinances, legal restrictions and initiatives that may prevent the company from building or relocating, or that impose limitations on the company's ability to build or relocate, stores in certain locations or to close underperforming stores in certain countries, availability of persons with the necessary skills and abilities necessary to meet the company's needs for managing and staffing its new stores and conducting its operations, including in the e-commerce area, availability of necessary utilities, weather conditions, availability of skilled labor, labor, material and other construction costs, insurance costs, operating expenses, fluctuations in market rates of interest and other capital market conditions, and other factors and risks. The company discusses certain of these matters more fully in its Annual Report on Form 10-K for its fiscal year ended January 31, 2013, and this release should be read in conjunction with that Annual Report on Form 10-K and 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. You are urged 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, including changes in facts, assumptions not being realized or other circumstances, the actual implementation of the company's operating and other plans by one or more of its operating segments, its actual capital expenditures, unit growth, and square footage growth in one or more of its operating segments, the formats of the units built, the conversion of discount stores to supercenters by the Walmart U.S. segment, the focus of the company's expansion and sales and operating income growth may differ materially from the expected results and the plans described in these forward-looking statements. The forward-looking statements included in this release are made only as of the date of this release, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

    ]]>
    Walmart CEO Reports Substantial Progress on Key Strategies and Focus on Near-Term Execution to Deliver Results http://es.news.walmart.com/news-archive/2013/10/15/walmart-ceo-reports-substantial-progress-on-key-strategies-focus-on-near-term-execution-to-deliver-results ROGERS, Ark., Oct. 15, 2013 – In opening remarks at the company’s 20th Annual Meeting for the Investment Community, Wal-Mart Stores, Inc., President and CEO Mike Duke today said that the company is focused on near-term execution to grow comp sales in Walmart U.S., improve returns in Walmart Inter... Tue, 15 Oct 2013 14:08:00 GMT http://es.news.walmart.com/news-archive/2013/10/15/walmart-ceo-reports-substantial-progress-on-key-strategies-focus-on-near-term-execution-to-deliver-results 2013-10-15T14:08:00Z ROGERS, Ark., Oct. 15, 2013 – In opening remarks at the company’s 20th Annual Meeting for the Investment Community, Wal-Mart Stores, Inc., President and CEO Mike Duke today said that the company is focused on near-term execution to grow comp sales in Walmart U.S., improve returns in Walmart International and leverage expenses for the full year. At the same time, he said the company is making substantial or, in some cases, even “step-change” progress in key areas, including leverage initiatives, capital discipline, e-commerce, compliance, talent recruitment and corporate responsibility.

    "We have delivered consistent growth and returns to shareholders for many years, and we will continue to do so," said Duke. "No matter what environment we're in -- today, a year from now, or five years from now -- we are driven to win. And we're never satisfied at Walmart until we do."

    Focus on Near-Term Execution

    Acknowledging the challenging retail environment, Duke said: "We're in a tough and unpredictable global economy. The competition is also tough. And the holidays are right around the corner -- raising the stakes even further on serving customers and delivering on performance. All of this is to say that near-term execution is critical for us."

    Duke started with the priority of growing comp sales at Walmart U.S. He said, “When you go to our stores, you’re going to see fantastic new merchandise, aggressive investments in price through lots of rollbacks and better in-stock levels. We’re focusing on execution to deliver results.”

    Duke also discussed returns in Walmart International, saying the company could improve “even in places where we’re already doing well.” Duke said that the division recently assessed its portfolio and made important strategic decisions on current operations. “These actions, combined with capital discipline and e-commerce investments, will deliver a solid framework for future growth and improved returns,” added Duke. “Walmart International is a great business that we are only making stronger.”

    Duke then turned to a company-wide goal he set at the annual investors' meeting two years ago: reducing operating expenses as a percentage of sales by at least 100 basis points over five years. "We made progress on that goal last year, and our goal is to deliver leverage again for this fiscal year," said Duke.

    Substantial Progress in Key Long-Term Areas

    Highlighting the long-term areas where the company is making progress, Duke started by saying that investments in leverage initiatives are paying off around the world. For example, the U.S. logistics team is reducing shipping costs and increasing transportation efficiency, a single process initiative is generating significant savings in labor productivity in China, and the company has migrated all but one market in Latin America to its Costa Rican Shared Services Center. Duke added, "We're driving costs out of our system so we can invest those savings into lower prices for Walmart customers."

    Duke said the company is "much more streamlined in how we make real estate decisions and invest capital." He highlighted the stronger performance of new stores and progress in bringing down the cost to build, expand and remodel stores.

    Duke said he “loved the progress that the company has made in e-commerce over the past year. The biggest opportunity we have is winning the intersection between physical and digital retail around the world. We’ve never been more connected across the company on e-commerce, and our results demonstrate this.” In the first half of the year, Walmart’s e-commerce sales grew 30 percent globally, including a strong performance at Yihaodian in China.

    As the company has discussed previously, Walmart has made major investments in compliance over the past year. Its focus has been on better processes and procedures, increased training for associates and strengthening organizational leadership. "This is the right thing to do," Duke said. "And let me be clear that our progress with compliance makes us a stronger business for the long-term. Compliance is an essential part of our growth strategy."

    Turning to Walmart's 2.2 million associates worldwide, Duke highlighted that global associate engagement scores are currently at their highest mark ever, the company has hired more than 16,000 veterans in the U.S. in less than six months, and some of the best talent anywhere is excited about joining Walmart.  "I feel better than ever about our talented associates and the career opportunities we provide at Walmart," said Duke. "The quality of the leaders we're recruiting is just incredible."

    Duke also said that he was very pleased with the work the company has done to make a difference on big issues around the world. "We've only accelerated in the past year -- with our commitments on renewable energy, to reduce certain chemicals in products and to help revitalize manufacturing in the U.S," said Duke. "We set the pace for how companies take on big issues facing society, and we'll keep leading because it's good for our business."

    Winning in Any Retail Environment

    Duke closed his opening remarks by sharing his overall view on Walmart's global business and where it's headed: "Even in a tough and unpredictable economy, there is strength in our businesses around the world. We're making substantial progress in areas that are the foundation for long-term growth and shareholder returns. And whether I'm meeting with the leadership team in the Home Office, or walking stores and clubs in any market, I see a team that's disciplined, focused and executing on the fundamentals. Walmart will win."

     

    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 more than 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries.  With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2.2 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/walmartnewsroom. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

     

    Forward-looking statement
    This release contains statements that Walmart believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. Except as noted below, these forward-looking statements are identified by use of the words or phrases "will continue," "could improve," "will deliver," "is to deliver," and "will keep" or a variation of the foregoing words or phrases in these statements, in the descriptions of certain assumptions on which expectations, forecasts or projections discussed in this release are based.  The forward-looking statements discuss, among other things: management's expectations to deliver consistent growth and returns to the Company's shareholders for many years, management's statement that the company can improve even in places where the company is already doing well in Walmart International, management's expectation to deliver a solid framework for future growth and improve returns, management's goal to deliver leverage in fiscal year 2014, and management's expectation to continue to lead on how companies take on big issues facing society.  These forward-looking statements and the information in the charts described above are subject to risks, uncertainties and other factors, domestically and internationally, including general economic conditions, including the effects of the current economic situation, competitive pressures, geopolitical conditions and events, inflation, deflation, consumer confidence, credit availability, spending patterns and debt levels, currency exchange fluctuations, unemployment and partial employment rates, personal income and other tax rates, trade restrictions, availability of attractive investment opportunities in non-United States markets, availability of appropriate locations for new or relocated units, local real estate and other laws, ordinances, legal restrictions and initiatives that may prevent the company from building or relocating, or that impose limitations on the company's ability to build or relocate, stores in certain locations,  availability of persons with the necessary skills and abilities necessary to meet the company's needs for managing and staffing its new stores and conducting its operations, including in the e-commerce area, availability of necessary utilities, weather conditions, availability of skilled labor, labor, material and other construction costs, insurance costs, operating expenses, fluctuations in market rates of interest and other capital market conditions, and other factors and risks. The company discusses certain of these matters more fully in its Annual Report on Form 10-K for its fiscal year ended January 31, 2013, and this release should be read in conjunction with that Annual Report on Form 10-K and 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. You are urged 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, including changes in facts, assumptions not being realized or other circumstances, the actual implementation of the company's operating and other plans by one or more of its operating segments, its actual capital expenditures, unit growth, and square footage growth in one or more of its operating segments, the formats of the units built, the conversion of discount stores to supercenters by the Walmart U.S. segment, the focus of the company's expansion and sales and operating income growth may differ materially from the expected results and the plans described in these forward-looking statements. The forward-looking statements included in this release are made only as of the date of this release, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

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