THIRD QUARTER 2011: WALMART ANNOUNCES COMPS UP

Walmart reported third quarter diluted earnings per share from continuing operations (EPS) of $0.97, compared to last year's $0.95 per share, which included a tax benefit of approximately $0.05 per share.

The company's EPS was within its third quarter guidance of $0.95 to $1.00. Net sales for the third quarter were $109.5 billion, an increase of 8.2% from last year.

Both Walmart U.S. and Sam's Club exceeded comparable ("comp") sales guidance for the quarter.

Walmart U.S. comp sales increased 1.3 percent and Sam's Club comp sales, without fuel, increased 5.7%.

Walmart International increased net sales approximately 20% to $32.4 billion for the quarter, including the benefit from acquisitions and currency exchange translation.

The company, as well as the three operating segments, leveraged operating expenses for the quarter.

During the third quarter, the company returned $2.7 billion to shareholders through dividends and share repurchases.

"Every business segment is stronger today than it was a year ago, and we delivered solid earnings growth for our shareholders in the third quarter," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "Both Walmart U.S. and Sam's Club exceeded comp sales guidance, and I'm pleased that the sales momentum positions us exceedingly well for the holidays. We also are pleased with the growth in both sales and operating income for Walmart International. "The company leveraged operating expenses this quarter, with all three operating segments achieving that goal as well," Duke continued. "We are committed to leveraging expenses again this year. Our overall performance reflects Walmart's strategy of driving the productivity loop, reducing expenses and investing in price."

The economy continues to weigh on Walmart U.S. customers, and Duke said the stores are continuing a strategy of investing in low prices for the holidays.

"Beyond everyday low price, Walmart U.S. has a number of additional programs in place for the fourth quarter, including the Christmas price guarantee, holiday layaway services and free online shipping options," said Duke.

"Like the U.S., our international markets are ready for the upcoming holidays. We continue to see strong consumer demand in emerging markets, and our mission is relevant across all our formats around the world. EDLP is becoming an even stronger competitive advantage for us," Duke added.