Wal-Mart Reports Record First Quarter Sales and Earnings

Wal-Mart Reports Record First Quarter Sales and Earnings

Wal-Mart Stores, Inc. (NYSE: WMT) today reported record sales and earnings for the quarter ended Apr. 30, 2007. Net sales for the first quarter of fiscal year 2008 were $85.387 billion, an increase of 8.3 percent over the first quarter of fiscal year 2007. Income from continuing operations for the quarter was $2.826 billion, an increase of 6.2 percent from $2.660 billion in the first quarter of fiscal year 2007.

Earnings per share from continuing operations were $0.68, up from $0.64 per share in the same prior year quarter.

While these are record sales and earnings, we feel there was an opportunity to have done better,” said Lee Scott, Wal-Mart Stores, Inc. president and chief executive officer. “Delivering on our mission — saving people money so they can live better — is more important than ever around the world. The worldwide organization is focused on improving sales and returns.”

The Wal-Mart Stores and Sam’s Club segments’ operating income includes the favorable impact of an excise tax refund on prior merchandise phone card sales of $46 million and $39 million, and a charge for certain litigation of $73 million and $10 million, respectively.

Beginning with the first quarter of fiscal 2008, the above measurement of segment operating income has been changed to be consistent with certain changes to internal management reporting. The result of the new measurement criteria is to charge certain direct segment costs to the appropriate segments that were previously retained and managed as corporate overhead costs. As a result, all prior year measurements of segment profits have been restated for comparative purposes.

The Company estimates earnings per share from continuing operations for the second quarter of fiscal 2008 to come in between $0.75 and $0.79.

After this earnings release has been furnished to the SEC, a pre-recorded call offering additional comments on the quarter will be available to all investors. Callers may listen to this call by dialing 203-369-1090. The information included in this release and the pre-recorded phone call will be available in the investor information area on the Company’s Web site at http://www.walmartstores.com/Investors.