Walmart reports Q2 FY17 EPS of $1.21, adjusted EPS1 of $1.07, Raises full-year adjusted EPS1 guidance range to $4.15 to $4.35

Wal-Mart Stores, Inc. (NYSE: WMT):

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Walmart reports Q2 FY17 earnings

• Diluted EPS was $1.21. Currency negatively impacted EPS by approximately $0.03.
• Adjusted EPS1 of $1.07 excludes a non-cash gain of $0.14, net of tax, from the sale of Yihaodian in China.
• Total revenue was $120.9 billion, an increase of 0.5%. On a constant currency basis1, total revenue was $123.6 billion, an increase of 2.8%.
• Walmart U.S. delivered positive comp sales for the eighth consecutive quarter, up 1.6%, driven by the seventh consecutive quarter of positive traffic, up 1.2%. Neighborhood Market comp sales increased approximately 6.5%.
• Net sales at Walmart International were $28.6 billion. Excluding currency1 impacts, net sales were $31.3 billion, an increase of 2.2%.
• Globally, on a constant currency basis, e-commerce sales and GMV increased 11.8% and 13.0%, respectively, representing an acceleration from the first quarter.
• Consolidated operating income increased 1.6%, including a gain of $535 million from the sale of Yihaodian. Excluding this gain, consolidated operating income declined 7.2%. As expected, investments in people and technology, as well as currency exchange rate fluctuations negatively impacted results.
• Year to date operating cash flow was $14.9 billion and free cash flow1 was $10.3 billion, both approximately $5.0 billion higher than last year primarily due to improved working capital management, including significant inventory improvement, and timing of payments.
• The company now estimates fiscal year 2017 adjusted EPS1 of $4.15 to $4.35, or GAAP EPS of $4.29 to $4.49, both of which include an estimated dilutive impact to EPS of approximately $0.05, primarily in the fourth quarter, as a result of expected operating losses and one-time transaction expenses related to the planned acquisition of Jet.com. The adjusted EPS guidance excludes the non-cash gain of $0.14, net of tax, from the sale of Yihaodian.

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

2 Q2 FY17 includes the gain from the sale of Yihaodian, which was $535 million on a reported basis and $568 million on a constant currency basis.

3 $12.7 billion remaining of $20 billion authorization approved in October 2015. The company repurchased approximately 30 million shares in Q2 FY17.

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 11,539 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482.1 billion, Walmart employs approximately 2.3 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 http://twitter.com/walmart.

Along with this press release, Walmart makes available a recorded call with executive leaders and a financial presentation to review the business results, provide strategic updates, and 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

View source version on businesswire.com: http://www.businesswire.com/news/home/20160818005466/en/

Wal-Mart Stores, Inc.Investor Relations:Steve Schmitt, 479-258-7172orMedia Relations:Randy Hargrove, 800-331-0085