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Wal-Mart: Walmart Reports Q3 Fy 16 Eps Of

The following excerpt is from the company's SEC filing.

Walmart U.S. added

$2.7 billion

in sales, comp sales of

Q3 diluted EPS from continuing operations was $1.03, benefited by approximately $0.04 from an adjustment for certain leases. Currency negatively impacted EPS by $0.04.

"We are pleased with the continued sales growth in Walmart U.S. and in our international business. Strong traffic and our fifth consecutive quarter of positive comps in Walmart U.S. stores show we are taking the right steps to win with customers. Although we still have work to do, we are positioning for sustainable growth through investments in people and techno logy to deliver a seamless shopping experience at scale."

Total revenue was $117.4 billion. On a constant currency basis

, total revenue was $122.4 billion, an increase of 2.8%.

Comp sales at Walmart U.S. were positive for the fifth consecutive quarter, up 1.5%. Traffic increased 1.7%. Customer experience scores continued to strengthen. Neighborhood Market comps increased approximately 8%, with strong growth from newer stores.

Walmart International net sales were $29.8 billion. On a constant currency basis

, sales reached $34.7 billion, led by Mexico and Canada. Operating income decreased 6.4%. On a constant currency basis

, operating income increased 8.5%.

E-commerce sales and GMV globally increased approximately 10% on a constant currency basis

. Growth was pressured by challenges in key international markets.

Investments in people and technology continued. Consolidated operating income declined 8.8%. On a constant currency basis

, consolidated operating income declined 5.4%.

Doug McMillon, President and CEO, Wal-Mart Stores, Inc.

(Amounts in billions, except as noted)

(Consolidated)

Revenue ex. fx

fx impact ~-$5.0 billion

ex. fx

The company paid

$1.6 billion

in dividends and repurchased approximately

6 million

shares for

$437 million

Return on investment

(ROI) for the trailing 12-months ended October 31, 2015 was

, compared to

for the prior comparable period. The decline in ROI was primarily due to our decrease in operating income, as well as continued capital investments.

Free cash flow

$6.8 billion

for the nine months ended October 31, 2015, compared to

$7.2 billion

in the prior year. The decrease in free cash flow was primarily due to lower income from continuing operations offset by the timing of payments.

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

NYSE: WMT

November 17, 2015

stock.walmart.com

(U.S.)

Net sales

Traffic: -0.7%

Traffic: +1.7%

Ticket: +1.2%

Ticket: -0.2%

E-commerce 20 bps

E-commerce 15 bps

Net sales ex. fx

-11.4%

Comp sales w/o fuel

Traffic: +0.2%

Traffic: -0.3%

+1.6% ex. fuel

Ticket: +0.2%

Ticket: +0.7%

E-commerce 60 bps

13-week period ended Oct. 30, 2015, compared to 13-week period ended Oct. 31, 2014.

"We delivered solid earnings per share that was well within our guidance. Looking ahead, we are narrowing our full-year earnings per share guidance to range between $4.50 and $4.65, including a range of $1.40 to $1.55 for the fourth quarter. This includes ongoing headwinds from currency, which we now expect will impact earnings per share by $0.16, compared to $0.15 from last quarter's guidance. We continue to expect relatively flat total sales growth for the year. Without the currency impact, our full-year total net sales growth would be around 3 percent."

Charles Holley, Executive Vice President and CFO, Wal-Mart Stores, Inc.

Q4 FY16

Sam’s Club comp

LY: $1.53

$4.50 to $4.65 LY: $4.99

around +1%

LY: +1.5%

flat to +1%

LY: +2.0%

Accounting for certain leases

As we disclosed in the second quarter, we conducted a global review of leases, which included a focus on leases where our payment of certain structural component costs during a lessor's construction of the leased store causes us to be deemed the owner of the property for accounting purposes. In the third quarter, we finalized this review and recorded an immaterial cumulative adjustment. On a consolidated basis, total assets increased by approximately $1.7 billion, primarily representing property under capital lease and financing obligations, total liabilities increased by approximately $1.6 billion, primarily representing additional current and long-term capital lease and financing obligations, and net income increased by approximately $100 million, positively impacting earnings per share by approximately $0.04.

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, nearly 260 million customers and members visit our

11,554

stores under 72 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 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

Investor Relations contact

Pauline Mohler (479) 277-0218

Media Relations contact

Randy Hargrove (800) 331-0085

13-week period ending Jan. 29, 2016, compared to 13-week period ended Jan. 30, 2015.

Along with this press release, Walmart makes available a recorded call with executive leaders to review the business results, to provide strategic updates and to comment on expectations for the future. We provide that call in both audio form and in a written transcript. Details on accessing the call are as follows:

877-523-5612 (U.S. and Canada)

201-689-8483 (other countries)

Passcode: 9256278 (Walmart)

MP3 @ stock.walmart.com

The call is archived at stock.walmart.com

Forward Looking Statements

This release contains statements as to Walmart management's guidance regarding the diluted earnings per share from continuing operations attributable to Walmart for the three months and the year ending Jan. 31, 2016, Walmart's total sales growth in fiscal 2016, calculated both in accordance with GAAP and on a constant currency basis, and Walmart U.S.'s comparable store sales and Sam's Club's comparable club sales, excluding fuel, for the 13 weeks ending Jan. 29, 2016 and management's expectation for the impact of currency exchange rate fluctuations on Walmart's earnings per share for fiscal 2016. Walmart believes such statements are "forward-looking statements" as defined in, and they are intended to enjoy the protection of the safe harbor for forward-looking statements provided by, the Private Securities Litigation Reform Act of 1995, as amended. Walmart's actual results may differ materially from the guidance provided and the underlying assumptions and management's expectations noted above as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including:

economic, geo-political, capital markets and business conditions, trends and events around the world and in the markets in which Walmart operates;

currency exchange rate fluctuations, changes in market interest rates and commodity prices;

unemployment levels;

competitive pressures;

inflation or deflation, generally and in particular product categories;

consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise;

consumer enrollment in health and drug insurance programs and such programs' reimbursement rates;

the amount of Walmart's net sales denominated in the U.S. dollar and various foreign currencies;

the financial performance of Walmart and each of its segments;

factors affecting Walmart's effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations;

customer traffic and average ticket...


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