Walmart (WMT) 8-K Wal-Mart Reports Record Fourth Quarter Sales and Earnings

Exhibit 99.1

WAL-MART

STORES, INC.

479/273-4314 www.walmartstores.com/news/

FOR IMMEDIATE RELEASE	Investor Relations Contacts
	Investor Relations 479/273-8446
	Carol Schumacher 479/277-1498
	Pauline Tureman 479/277-9558
	Media Relations Contact
	Marty Heires 479/273-4314 Gail Lavielle 479/204-8295
	Pre-recorded Conference Call
	203/369-1090

Wal-Mart Reports Record Fourth Quarter Sales and Earnings

BENTONVILLE, Ark., February 21, 2006 — Wal-Mart Stores, Inc. reported record sales and earnings for the quarter ended January 31, 2006. Net sales were $89.3 billion, an increase of 8.6 percent over the fourth quarter of fiscal 2005. Net income for the quarter was $3.6 billion, an increase of 13.4 percent from $3.2 billion in the fourth quarter of fiscal 2005. Earnings per share were $0.86, up from $0.75 per share in the same prior year quarter. Fourth quarter earnings in fiscal 2006 were favorably impacted by a $103 million net tax benefit recorded in the company’s tax provision. This $0.02 per share net benefit arose from the adjustment of deferred tax balances and resolutions of certain federal and state tax contingencies.

Net sales for the fiscal year ended January 31, 2006, were $312.4 billion, an increase of 9.5 percent over fiscal 2005. Net income for fiscal 2006 increased 9.4 percent to a record $11.2 billion, up from $10.3 billion in fiscal 2005. Earnings per share for fiscal 2006 were $2.68, up from $2.41 in fiscal 2005.

“We’re pleased our trend of year-over-year increases in sales and net income continues,” said Wal-Mart Stores President and Chief Executive Officer Lee Scott. “We added more than $7 billion in sales in the quarter and ended the year strong.”

Scott said he is optimistic about the year as he anticipates positive results from the company’s business strategies to improve the customer experience.

“Our entire management team is dedicated to growing sales by making our stores more relevant to today’s customers,” Scott explained. “We want our merchandise to appeal to a broad range of customers who are already shopping our stores. We want customers to shop Wal-Mart for all their needs, from consumables to electronics, home décor and apparel.”

Net sales were as follows (dollars in billions):

	Three Months Ended January 31,						Fiscal Year Ended January 31,
	2006		2005		Percent Change		2006		2005		Percent Change
Wal-Mart Stores	$	60.218	$	55.452	8.6	%	$	209.910	$	191.826	9.4	%
SAM’S CLUB		10.655		9.980	6.8	%		39.798		37.119	7.2	%
International		18.400		16.784	9.6	%		62.719		56.277	11.4	%
Total Company	$	89.273	$	82.216	8.6	%	$	312.427	$	285.222	9.5	%

Total U.S. comparable sales for the fourth quarter of fiscal 2006 increased 3.1 percent, which is represented by a 2.7 percent increase for Wal-Mart Stores and a 5.1 percent increase for SAM’S CLUB. Total U.S. comparable sales for fiscal 2006 were up 3.4 percent, which is comprised of a 3.0 percent increase for Wal-Mart Stores and a 5.0 percent increase for SAM’S CLUB.

Wal-Mart Stores Segment:

For the fourth quarter of fiscal 2006, the Wal-Mart Stores segment had segment operating income (income before net interest expense, income taxes, unallocated corporate overhead and minority interest) of $4.714 billion, an increase of 11.1 percent, compared with $4.242 billion in the fourth quarter of fiscal 2005.

For the fiscal year ended January 31, 2006, the Wal-Mart Stores segment had segment operating income of $15.324 billion, an increase of 8.2 percent, as compared with segment operating income of $14.163 billion in fiscal 2005.

SAM’S CLUB Segment:

The SAM’S CLUB segment had segment operating income for the fourth quarter of fiscal 2006 of $377 million, an increase of 6.2 percent, compared with $355 million in the fourth quarter of fiscal 2005.

For fiscal 2006, the SAM’S CLUB segment had segment operating income of $1.385 billion, an increase of 8.2 percent, as compared with segment operating income of $1.280 billion in fiscal 2005.

International Segment:

The International segment had segment operating income of $1.116 billion for the most recent quarter, an increase of 14.1 percent, compared with $978 million in the fourth quarter of fiscal 2005.

The International segment had segment operating income of $3.330 billion in fiscal 2006, an increase of 11.4 percent, compared with $2.988 billion for fiscal 2005.

Guidance:

The company expects earnings per share for the first quarter of fiscal 2007 to come in between $0.58 and $0.62, and for fiscal 2007, the forecast is $2.88 to $2.95.

Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM’S CLUB locations in the United States. The company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. The company’s securities are listed on the New York and Pacific stock exchanges under the symbol WMT. More information about Wal-Mart can be found by visitingwww.walmartfacts.com. Online merchandise sales are available atwww.walmart.com.

This release contains statements as to management’s expectations for fiscal 2007 and the forecast of earnings per share for the first quarter and fiscal year 2007 that Wal-Mart believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These forward-looking statements are identified by the use of words such as “anticipates,” “expects” and “forecast,” and are subject to risks, uncertainties and other factors, domestically and internationally, including, the cost of goods, competitive pressures, geopolitical conditions, inflation, consumer spending patterns and debt levels, currency exchange fluctuations, trade restrictions, changes in tariff and freight rates, weather conditions, changes in gasoline, diesel fuel and other energy costs, labor costs, health care costs and accident costs, interest rate fluctuations and other capital market conditions and other risks. We discuss certain of these factors more fully in other of our filings with the SEC, including our last Annual Report on Form 10-K filed with the SEC, and this release should be read in conjunction with that Annual Report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, made with the SEC through the date of this report. We urge you 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, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this report and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.

WAL-MART STORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Amounts in millions except per share data)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
	2006			2005			2006			2005
Revenues:
Net sales	$	89,273		$	82,216		$	312,427		$	285,222
Other income, net		854			683			3,227			2,910
		90,127			82,899			315,654			288,132
Costs and expenses:
Cost of sales		69,045			63,723			240,391			219,793
Operating, selling, general and administrative expenses		15,222			13,878			56,733			51,248
Operating income		5,860			5,298			18,530			17,091
Interest:
Debt		324			284			1,171			934
Capital leases		76			65			249			253
Interest income		(78	)		(52	)		(248	)		(201	)
Interest, net		322			297			1,172			986
Income before income taxes and minority interest		5,538			5,001			17,358			16,105
Provision for income taxes		1,835			1,735			5,803			5,589
Income before minority interest		3,703			3,266			11,555			10,516
Minority interest		(114	)		(102	)		(324	)		(249	)
Net income	$	3,589		$	3,164		$	11,231		$	10,267
Basic and diluted net income per common share:	$	0.86		$	0.75		$	2.68		$	2.41
Weighted-average number of common shares:
Basic		4,166			4,235			4,183			4,259
Diluted		4,170			4,242			4,188			4,266

Certain reclassifications have been made to the prior period to conform to the current presentation.

WAL-MART STORES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in millions)

SUBJECT TO RECLASSIFICATION

	January 31, 2006		January 31, 2005
ASSETS
Cash and cash equivalents	$	6,414	$	5,488
Receivables		2,662		1,715
Inventories		32,191		29,762
Prepaid expenses and other		2,591		1,889
Total current assets		43,858		38,854
Property and equipment, at cost		97,302		84,037
Less accumulated depreciation		21,427		18,637
Property and equipment, net		75,875		65,400
Property under capital leases, net		3,415		2,718
Goodwill		12,188		10,803
Other assets and deferred charges		2,833		2,379
Total assets	$	138,169	$	120,154
LIABILITIES AND SHAREHOLDERS’ EQUITY
Commercial paper	$	3,754	$	3,812
Accounts payable		25,373		21,987
Accrued liabilities		13,465		12,120
Accrued income taxes		1,322		1,281
Long-term debt due within one year		4,595		3,759
Obligations under capital leases due within one year		299		223
Total current liabilities		48,808		43,182
Long-term debt		26,429		20,087
Long-term obligations under capital leases		3,742		3,171
Deferred income taxes and other		4,552		2,978
Minority interest		1,467		1,340
Commitments and contingencies
Common stock and capital in excess of par value		3,013		2,848
Retained earnings		49,105		43,854
Other accumulated comprehensive income		1,053		2,694
Total shareholders’ equity		53,171		49,396
Total liabilities and shareholders’ equity	$	138,169	$	120,154

Certain reclassifications have been made to the prior period to conform to the current presentation.

WAL-MART STORES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Amounts in millions)

SUBJECT TO RECLASSIFICATION

	Fiscal Year Ended January 31
	2006			2005
Cash flows from operating activities:
Net income	$	11,231		$	10,267
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,717			4,264
Other		509			641
Changes in certain assets and liabilities, net of effects of acquisitions:
Increase in accounts receivable		(456	)		(304	)
Increase in inventories		(1,733	)		(2,494	)
Increase in accounts payable		2,390			1,694
Increase in accrued liabilities		975			976
Net cash provided by operating activities		17,633			15,044
Cash flows from investing activities:
Payments for property and equipment		(14,563	)		(12,893	)
Disposal of assets		1,049			953
Investment in international operations, net of cash acquired		(601	)		(315	)
Other investing activities		(68	)		(96	)
Net cash used in investing activities		(14,183	)		(12,351	)
Cash flows from financing activities:
Increase (decrease) in commercial paper		(704	)		544
Proceeds from issuance of long-term debt		7,691			5,832
Dividends paid		(2,511	)		(2,214	)
Payment of long-term debt		(2,724	)		(2,131	)
Purchase of Company stock		(3,580	)		(4,549	)
Other financing activities		(594	)		(91	)
Net cash used in financing activities		(2,422	)		(2,609	)
Effect of exchange rates on cash		(102	)		205
Net increase in cash and cash equivalents		926			289
Cash and cash equivalents at beginning of year		5,488			5,199
Cash and cash equivalents at end of period	$	6,414		$	5,488

Certain reclassifications have been made to the prior period to conform to the current presentation.