USA: Wal-Mart reports record sales and income for the second quarter

Wal-Mart Stores, Inc. (NYSE: WMT), reported
record sales for the third quarter of $45.676 billion and sales of $134.773
billion for the nine months ended Oct. 31, 2000, representing increases of 13.0
percent and 18.6 percent, respectively, compared to the same periods last year.

Net income for the third fiscal quarter
was also a record at $1.369 billion, or $0.31 per share, and was up 5.8 percent
compared to the $1.294 billion, or $0.29 per share, reported in the same quarter
in the prior year. Net income for the nine months increased 24.0 percent to
$4.291 billion, or $0.96 per share, compared to $3.461 billion, or $0.78 per
basic share, reported in the same nine month period last year.

Lee Scott, president and chief executive
officer of Wal-Mart Stores, Inc., said, “We are pleased that in a difficult
quarter we were able to achieve record sales and earnings. We gained market
share and generated good earnings growth in a challenging retail environment.
This is a tribute to our associates around the world who remain completely focused
on serving the local needs of their customers.”

Sales for the periods were as follows:

(Dollars in millions)

	Quarter Ended Oct. 31		Percent	Six Months Ended Oct. 31		Percent
	2000	1999	Change	2000	1999	Change
Wal-Mart	$29,226	$26,460	10.5%	$86,413	$77,000	12.2%
SAM’S Club	6,573	6,011	9.3	19,317	17,747	8.8
International	7,437	5,910	25.8	22,038	12,883	71.1
Mclane	2,440	2,051	19.0	7,005	5,989	17.0
Total Company	$45,676	$40,432	13.0%	$134,773	$113,619	18.6%

Total company comparable sales for the
quarter increased 4.9 percent. This is represented by a 4.5 percent comp increase
for the Wal-Mart stores and a 6.6 percent increase for Sam’s Clubs.

Wal-Mart Stores Segment:

For the third quarter
the Wal-Mart Stores segment, including Supercenters, had operating profit (profit
before interest, unallocated corporate expenses, and income taxes) of $2.249
billion, compared to $1.993 billion, in the same period last year, a 12.8 percent
increase. Year to date operating profit was $6.969 billion, an increase of 16.6
percent compared to the $5.977 billion for the nine months ending Oct. 31, 1999.

Sam’s Club Segment:

The Sam’s Club segment
had an operating profit for the quarter of $219 million, an increase of 12.9
percent compared to $194 million for the same period last year. Sam’s operating
profit for the nine-month period was $648 million, an increase of 11.9 percent
compared to operating profit of $579 million in the same period last year.

International Segment:

The International segment
had an operating profit of $241 million for the quarter, a 25.5 percent increase,
compared to $192 million in the same period last year. Year to date, international
operating profit was $622 million, a 69.5 percent increase, compared to $367
million in the nine months ending Oct. 31, 1999.

A pre-recorded call offering
additional comments regarding the quarter will be available for approximately
36 hours from the time of this release. You may listen to this call by dialing
402-220-3103. If this number is busy, you can dial 973-633-1010.

Except for historical
information, statements in this release are forward- looking and are subject
to risks and uncertainties including, but not limited to, competitive pressures,
inflation, consumer debt levels, currency exchange fluctuations and other risks
listed in the Company’s filings with the Securities and Exchange Commission.
Actual results may materially differ from anticipated results.

As of Oct. 31, 2000, the
Company had 1,723 Wal-Mart stores, 866 Supercenters, 469 Sam’s Clubs and 15
Neighborhood Markets in the United States. Internationally, the Company operated
units in Argentina (11), Brazil (18), Canada (169), China (8), Germany (95),
Korea (6), Mexico (483), Puerto Rico (15) and United Kingdom (240). Wal-Mart
employs more than 885,000 associates in the U.S. and 255,000 internationally.
Its securities are listed on the New York and Pacific stock exchanges.

WAL-MART STORES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) SUBJECT TO RECLASSIFICATION
(Amounts in millions)	October 31, 2000	October 31,1999
ASSETS
Current assets
Cash and cash equivalents	$ 1,311	$ 1,435
Receivables	1,468	1,630
Inventories	24,975	22,373
Prepaid expenses and other	1,675	1,517
Total current assets	29,429	26,955
Property, plant and equipment	45,833	40,322
Accumulated depreciation	(9,619)	(8,781)
Net property, plant and equipment	36,214	31,541
Net property under capital leases	3,112	3,216
Net goodwill and other acquired intangible assets	8,994	9,837
Other assets and deferred charges	1,302	820
Total assets	$ 79,051	$ 72,369
LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities
Commercial paper	$ 6,251	$ 6,459
Accounts payable	15,872	14,081
Accrued liabilities	6,373	7,270
Other current liabilities	3,470	1,379
Total current liabilities	31,966	29,189
Long-term debt	12,912	13,532
Long-term obligations under capital leases	2,973	3,027
Deferred income taxes and other	884	793
Minority interest	1,082	1,746
Shareholders’ equity
Common stock & paid in capital	1,736	1,052
Retained earnings	28,433	23,433
Other accumulated comprehensive income	(935)	(403)
Total shareholders’ equity	29,234	24,082
Total liabilities and shareholders’ equity	$ 79,051	$ 72,369

WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (Amounts in millions except per share data)
	Quarter Ended October 31,
	2000	% to Sales	1999	% to Sales
Net sales	$ 45,676		$ 40,432
Other income-net	505	1.11%	466	1.15%
	46,181	101.11%	40,898	101.15%
Cost of sales	35,694	78.15%	31,606	78.17%
Operating, selling, and general    and administrative expenses	7,918	17.34%	6,907	17.08%
Interest costs:
Debt	307	0.67%	251	0.62%
Capital leases	68	0.15%	66	0.16%
	43,987	96.30%	38,830	96.04%
Income before income taxes, minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change	2,194	4.80%	2,068	5.11%
Provision for income taxes	807	1.77%	757	1.87%
Income before minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change	1,387	3.04%	1,311	3.24%
Minority interest and equity in unconsolidated subsidiaries	(18)	(0.04%)	(17)	(0.04%)
Income before cumulative effect of accounting change	1,369	3.00%	1,294	3.20%
Cumulative effect of accounting change, net of tax benefit of $119	—	0.00%	—	0.00%
Net income	$1,369	3.00%	$1,294	3.20%
Net income per share: Basic earnings per share Income before cumulative effect of accounting change	$0.31		$0.29
Cumulative effect of accounting change, net of tax	$0.00		$0.00
Net income	$0.31		$0.29
Diluted earnings per share Income before cumulative effect of accounting change	$0.31		$0.29
Cumulative effect of accounting change, net of tax	$0.00		$0.00
Net income	$0.31		$0.29
Average number of common shares:
Basic	4,468		4,454
Dilutive	4,487		4,475
Lifo credit/(charge)	($10)		$20

 

WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (Amounts in millions except per share data)
	Nine Months Ended October 31,
	2000	% to Sales	1999	% to Sales
Net sales	$ 134,773		$ 113,619
Other income-net	1,443	1.07%	1,322	1.16%
	136,216	101.07%	114,941	101.16%
Cost of sales	105,403	78.21%	88,970	78.31%
Operating, selling, and general and administrative expenses	22,862	16.96%	19,368	17.05%
Interest costs:
Debt	842	0.62%	502	0.44%
Capital leases	206	0.15%	197	0.17%
	129,313	95.95%	109,037	95.97%
Income before income taxes, minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change	6,903	5.12%	5,904	5.20%
Provision for income taxes	2,540	1.88%	2,161	1.90%
Income before minority interest, equity in unconsolidated subsidiaries and cumulative effect of accounting change	4,363	3.24%	3,743	3.29%
Minority interest and equity in unconsolidated subsidiaries	(72)	(0.05%)	(84)	(0.07%)
Income before cumulative effect of accounting change	4,291	3.18%	3,659	3.22%
Cumulative effect of accounting change, net of tax benefit of $119	—	0.00%	(198)	(0.17%)
Net income	$ 4,291	3.18%	$ 3,461	3.05%
Net income per share:
Basic earnings per share
Income before cumulative effect of accounting change	$0.96		$0.82
Cumulative effect of accounting change, net of tax	$0.00		($0.04)
Net income	$0.96		$0.78
Diluted earnings per share
Income before cumulative effect of accounting change	$0.96		$0.82
Cumulative effect of accounting change, net of tax	$0.00		($0.04)
Net income	$0.96		$0.77
Average number of common shares:
Basic	4,463		4,451
Dilutive	4,484		4,473
Lifo credit/(charge)	($30)		$60

WAL-MART STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED (Unaudited)
SUBJECT TO RECLASSIFICATION (Amounts in millions)
	October 31,	October 31,
	2000	1999
Cash flows from operating activities:
Net Income	$ 4,291	$ 3,461
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,014	1,612
Increase in inventories	(5,315)	(4,621)
Increase in accounts payable	3,007	2,699
Other	(184)	610
Net cash provided by operating activities	3,813	3,761
Cash flows from investing activities:
Payments for property, plant, and equipment	(5,846)	(4,013)
Investment in International operations	(617)	(10,653)
Other investing activities	53	(179)
Net cash used in investing activities	(6,410)	(14,845)
Cash flows from financing activities:
Increase in commercial paper	2,441	6,709
Dividends paid	(802)	(668)
Payment of long-term debt	(1,292)	(838)
Proceeds from issuance of long-term debt	1,523	5,755
Purchase of Company stock	(193)	(101)
Proceeds from issuance of common stock	582	—
Other financing activities	(207)	(217)
Net cash provided by financing activities	2,052	10,640
Net decrease in cash and cash equivalents	(545)	(444)
Cash and cash equivalents at beginning of year	1,856	1,879
Cash and cash equivalents at end of period	$ 1,311	$ 1,435