Wal-Mart Reports Record Sales and Earnings for Second Quarter.

Wal-Mart Reports Record Sales and Earnings

BENTONVILLE, Ark., August 13, 2002 -- Wal-Mart Stores, Inc. reported record sales and earnings for the quarter ended July 31, 2002. Total sales were $59.694 billion, an increase of 13.1 percent over the similar prior year quarter. Net income for the quarter was $2.038 billion, up from $1.622 billion for the similar prior year quarter. Earnings per share were $0.46, up 27.8 percent from the $0.36 per share reported in the same prior year quarter. Adjusted for the change in accounting for goodwill, earnings per share would have been up 23.0%.

Net sales for the six months ended July 31, 2002, were $114.654 billion, an increase of 13.7 percent over the similar prior year period. Net income for the six months increased 23.0 percent to a record $3.690 billion or $0.83 earnings per share, up from $3.001 billion or $0.67 earnings per share.

Lee Scott, President and CEO said, "We are pleased to report another record quarter of sales and earnings. For the first time in our history, we generated over $2 billion in net income in a non-holiday quarter. Through the efforts of our associates and thanks to our loyal customers, we achieved nearly a 26% increase in net income for the quarter on a 13.1% increase in sales."

Sales were as follows: (Dollars in billions)

(Dollars in Billons)
	Quarter Ended July 31			Year Ended July 31
	2002	2001	Percent Change	2002	2001	Percent Change
Wal-Mart	$38.641	$33.870	14.1%	$74.058	$64.621	14.6%
SAM’S CLUB	$7.939	$7.270	9.2%	$15.234	$13.805	10.4%
International	$9.691	$8.362	15.9%	$18.683	$15.998	16.8%
McLane	$3.423	$3.297	3.8%	$6.679	$6.427	3.9%
Total Company	$59.694	$52.799	13.1%	$114.654	$100.851	13.7%

Total company comparable sales for the quarter were up 6.4 percent. This is represented by a 7.1 percent comp increase for the Wal-Mart stores and a 3.4 percent comp increase for SAM’S. Total company comparable sales for the six months were up 7.3 percent. This is represented by a 7.8 percent comp increase for the Wal-Mart stores and a 4.7 percent comp increase for SAM’S.

Wal-Mart Stores Segment:
For the second quarter, the Wal-Mart Stores segment, including Supercenters, had operating profit (profit before interest, unallocated corporate expenses, and income taxes) of $3.046 billion, an increase of 17.2 percent compared with $2.600 billion for the similar period in the previous year. For the six months operating profit was $5.600 billion, an increase of 16.7 percent as compared with $4.799 billion for the similar period in the previous year.

SAM’S CLUB Segment:
The SAM’S CLUB segment had an operating profit for the quarter of $275 million, an increase of 3.0 percent compared with $267 million for the similar period in the previous year. SAM’S operating profit for the six months was $493 million, an increase of 1.6 percent as compared with operating profit of $485 million for the similar period in the previous year.

International Segment:
The International segment had an operating profit of $510 million for the most recent quarter, an increase of 61.9 percent compared with $315 million for the similar period in the previous year. For the six months, International operating profit was $891 million, an increase of 68.1 percent as compared with $530 million for the similar period in the previous year.

A pre-recorded call offering additional comments on the quarter will be available to all investors for approximately 36 hours from the time of the release. You may listen to this call by dialing 402-998-1748 after the earnings release appears on the newswire.

As of July 31, 2002, the Company had 1611 Wal-Mart stores, 1156 Supercenters, 512 SAM’S CLUBS and 34 Neighborhood Markets in the United States. Internationally, the Company operated units in Argentina (11), Brazil (22), Canada (196), China (20), Germany (96), Korea (12), Mexico (575), Puerto Rico (18) and United Kingdom (255).

Wal-Mart also owns a 6.1% interest in Seiyu, Ltd. with options to purchase up to 66.7% of that company. Seiyu operates over 400 stores located throughout Japan.

Wal-Mart employs more than 1 million associates in the United States and more than 300,000 internationally. Its securities are listed on the New York and Pacific stock exchanges under the symbol WMT.

Wal-Mart includes the following cautionary statement to take advantage of the "safe harbor" provisions of the PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 for any forward- looking statement made by, or on behalf of, Wal-Mart. You are referred to Wal-Mart’s SEC filings for additional information regarding the safe harbor. The factors which could cause actual results to differ materially from predicted results include, among other things, cost of goods, competitive pressures, inflation, consumer debt levels, interest rate fluctuations, and other risks set forth in the Company’s filings with the SEC.


WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

(Amounts in millions except per share data)

		Quarter Ended July 31,
		2002	% to Sales	2001	% to Sales

Net sales		$ 59,694	100%	$ 52,799	100%
Other income-net		561	0.94%	470	.89%

		60,255	100.94%	53,269	100.89%

Cost of sales		46,639	78.13%	41,412	78.43%
Operating, selling, and general
	and administrative expenses	10,147	17%	8,893	16.84%

Interest costs:
	Debt	199	0.33%	284	0.54%
	Capital leases	63	0.11%	67	0.13%

		57,048	95.57%	50,656	95.94%


Income before income taxes,
	and minority interest	3,207	5.37%	2,613	4.95%

Provision for income taxes		1,124	1.88%	954	1.81%


Income before minority interest		2,083	3.49%	1,659	3.14%

Minority interest		(45)	(0.08%)	(37)	(0.07%)


Net income		$2,038	3.41%	$1,622	3.07%


Net income per share:
	Basic earnings per share	$0.46		$0.36


	Diluted earnings per share	$0.46		$0.36


Average number of common shares:
	Basic	4,438		4,470
	Dilutive	4,452		4,486

Lifo credit/(charge)		($10)		$10


WAL-MART STORES, INC., AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

(Amounts in millions except per share data)

		Six Months Ended July 31,
		2002	% to Sales	2001	% to Sales

Net sales		$ 114,654	100%	$ 100,851	100%
Other income-net		1,019	0.89%	983	0.97%

		115,673	100.89%	101,834	100.97%

Cost of sales		89,697	78.23%	79,262	78.59%
Operating, selling, and general
	and administrative expenses	19,601	17.10%	17,036	16.89%

Interest costs:
	Debt	415	0.36%	569	0.56%
	Capital leases	128	0.11%	135	0.13%

		109,841	95.80%	97,002	96.18%


Income before income taxes,
	and minority interest	5,832	5.09%	4,832	4.79%

Provision for income taxes		2,056	1.79%	1,764	1.75%


Income before minority interest		3,776	3.29%	3,068	3.04%

Minority interest		(86)	(0.08%)	(67)	(0.07%)


Net income		$3,690	3.22%	$3,001	2.98%


Net income per share:
	Basic earnings per share	$0.83		$0.67


	Diluted earnings per share	$0.83		$0.67


Average number of common shares:
	Basic	4,445		4,472
	Dilutive	4,460		4,488

Lifo credit/(charge)		($20)		$20


WAL-MART STORES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
SUBJECT TO RECLASSIFICATION (Amounts in millions)

		July 31,	July 31,
ASSETS		2002	2001

Current assets
	Cash and cash equivalents	$ 2,288	$ 1,834
	Receivables	1,934	1,751
	Inventories	24,270	23,034
	Prepaid expenses and other	1,304	1,377

Total current assets		29,796	27,996

Property, plant and equipment		58,212	51,275
Accumulated depreciation		(12,801)	(11,418)

Net property, plant and equipment		45,411	39,857

Net property under capital leases		3,057	3,146

Net goodwill and other acquired intangible assets		9,031	8,543
Other assets and deferred charges		1,290	2,034

Total assets		$ 88,585	$ 81,576


LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities
	Commercial paper	$1,453	$ 1,088
	Accounts payable	16,983	15,422
	Accrued liabilities	7,773	6,172
	Accrued income taxes	639	625
	Long-term debt due within one year	3,031	3,974
	Obligations under capial leases due within one year	155	142

Total current liabilities		30,034	27,423

Long-term debt		16,201	15,706

Long-term obligations under capital leases		2,878	3,030

Deferred income taxes and other		1,240	1,233

Minority interest		1,266	1,106

Shareholders’ equity
	Common stock & paid in capital	1,869	1,792
	Retained earnings	35,874	32,303
	Other accumulated comprehensive income	(777)	(1,017)

Total shareholders’ equity		36.966	33,078


Total liabilities and shareholders’ equity		$ 88,585	$ 81,576


WAL-MART STORES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED (Unaudited)
SUBJECT TO RECLASSIFICATION (Amounts in millions)

		July 31,	July 31 ,
		2002	2001

Cash flows from operating activities:

	Net income	$ 3,690	$ 3,001

Adjustments to reconcile net income to
	net cash provided by operating activities:
	Depreciation and amortization	1,599	1,481
	Increase in inventories	(1,679)	(1,631)
	Increase/(decrease) in accounts payable	1,378	539
	Other	(14)	(444)

Net cash provided by operating activities		4,974	2,946

Cash flows from investing activities
	Payments for property plant and equipment	(4,458)	(3,874)
	Other investing activities	276	(53)

Net cash used in investing activities		(4,182)	(3,927)

Cash flows from financing activities:
	Increase in commercial paper	713	(1,197)
	Dividends paid	(666)	(625)
	Payment of long-term debt	(649)	(1,222)
	Proceeds from issuance of long-term debt	1,526	4,141
	Purchase of Company stock	(1,672)	(254)
	Other financing activities	(125)	(115)

Net cash provided by (used in) financing activities		(873)	728

Effect of exchange rates on cash		208	(33)


Net increase/(decrease) in cash and cash equivalents		127	(220)
Cash and cash equivalents at the beginning of year		2,161	2,054


Cash and cash equivalents at end of period		$ 2,288	$ 1,834

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Wal-Mart Reports Record Sales and Earnings for Second Quarter.

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