Carol Schumacher – Vice President of Global Investor Relations Doug McMillon – President and Chief Executive Officer, Wal-Mart Stores, Inc. Claire Babineaux-Fontenot – Executive Vice President and Treasurer Greg Foran – President and Chief Executive Officer, Walmart U.S. David Cheesewright – President and CEO, Walmart International Rosalind Brewer – President and Chief Executive Officer, Sam’s Club Charles Holley – Executive Vice President and Chief Financial Officer

Hi, this is Carol Schumacher, Vice President of Global Investor Relations for Wal-Mart Stores, Inc. Thanks for joining us today for our earnings call to review the Third Quarter of Fiscal Year 2015. The date of this call is November 13, 2014. This call is the property of Wal-Mart Stores, Inc. and is intended for the use of Walmart shareholders and the investment community. It should not be reproduced in any way. For those listening on the phone, you may navigate through this call as follows. (Operator Instructions) This call contains statements that we believe are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended and that are intended to enjoy the protection of the Safe Harbor for forward-looking statements provided by that Act. Please note that a cautionary statement regarding the forward-looking statements will be made following Charles Holley’s remarks in this call. Our press release and a transcript of this call are available on our corporate website stock.walmart.com. Additionally, a supplemental presentation that summarizes our key financial results should be used with this call. That presentation appears at the end of the transcript. We believe the presentation provides a more streamlined approach to reviewing our financial performance and prior year comparisons. Unit count data, which is updated monthly, is posted separately on the investors’ portion of the website, under Financial Reporting. It is worth noting that last Wednesday, we opened our 5,000 unit in the United States, a Neighborhood Market in Greenbriar, Arkansas. In the Walmart U.S. discussion today, we refer to traditional Neighborhood Markets, which are grocery stores that average 43,000 square feet and include a pharmacy. The smaller Neighborhood Markets we refer to are those ranging in size from 12,000 square feet to 15,000 square feet and are what…

Good morning and thanks for joining us today. Walmart reported solid earnings per share of $1.15 in the third quarter, and our consolidated net sales increased $3.2 billion over the same period last year to $118.1 billion. I’m encouraged that Walmart U.S. reported a positive comp for the quarter and that our Neighborhood Market stores continued to show strong sales. Sam’s Club’s and International’s operating income grew faster than sales growth, and global e-commerce sales increased about 21%. But we need to continue to improve the customer experience both in our stores and online to deliver stronger sales growth and strengthen our bottom line performance. Now, let’s review our third quarter results in more detail. Walmart U.S. added $2.3 billion in net sales. Since the beginning of this year, you’ve heard me say that our focus was on delivering a positive comp by year-end. I’m encouraged that comp sales were positive in Q3, but we are still not satisfied. We have areas to improve, including in the customer experience and in our price leadership position and we are taking the steps necessary to fix these areas. Greg and the leadership team are intensely committed to driving short-term improvement through the urgent agenda items and he will share an update on this important work. Operating income declined due to increased healthcare expenses, investments in e-commerce, and investments in price. Walmart U.S. appeals to customers across all income levels, and they all want to get the best value. Our Savings Catcher program continues to help us reach more of these value-driven customers. The cost relief from lower fuel prices presents a potential benefit for customers and could continue to help them during this holiday shopping season in addition to helping our own business. Sam’s Club delivered strong operating income growth this quarter,…

Thanks, Doug. I’ll cover results of the company’s consolidated financial statements. Further details are available in the accompanying presentation released today as a part of the earnings transcript. Total revenue for the quarter exceeded $119 billion, as consolidated net sales increased $3.2 billion, or 2.8% along with membership and other income growth of 13.9%. Consolidated operating expenses increased 3.5%, primarily due to continued investments in wages and higher U.S. healthcare-related expenses. FCPA and compliance-related costs were approximately $41 million, which represents approximately $30 million for the ongoing inquiries and investigations and approximately $11 million for our global compliance program and organizational enhancements. Last year, FCPA and compliance-related costs were $69 million for the third quarter. Through the third quarter of this year, we have spent $137 million on FCPA and compliance-related costs versus our guidance of between $200 and $240 million. We expect to be near the low end of the guidance for the full-year. As you may see on Slides 2 and 3, net interest expense increased 13.1% for the quarter. This is primarily the result of the reclassification of certain store leases from operating to capital. Additionally, the company’s effective tax rate was 31.8%, below our previous guidance of around 34% due to certain discrete tax matters. So while we benefited in the quarter from a lower tax rate than anticipated, this benefit was offset by a number of discrete charges. In addition to the capital lease interest charges, we had some unique operating expenses in the quarter, which include organizational restructuring charges in the UK and Hurricane Odile losses in Mexico. Dave will discuss those later. From a balance sheet perspective, consolidated inventory increased 3.7%. Later in today’s call, you will hear more about inventory from our segment leaders. Payables as a percentage of inventory were 77.0%, which compares to 79% last year due primarily to higher inventory balances and the timing of payments. Improving inventory leverage is important, and each of our operating segments is focused on this priority. I will conclude today with a comment about returns. The decrease in ROI was primarily due to a decrease in operating income, as well as our continued investment in store growth and e-commerce initiatives. Free cash flow increased primarily as a result of timing of income tax payments and capital expenditures. Now, I’ll turn the call over to Greg. Greg?

Thank you, Claire. Over my first 100 days, I’ve been visiting our stores and competition across the country and evaluating the U.S. business landscape. I’ve spent time with our frontline associates and leadership teams, and I’m encouraged by what I see. There are some areas where we really are excelling and our performance reflects this. However, I still know we’ve got a lot of work to do. To summarize the U.S. business as I see it today, comps have improved, but sales and operating cost headwinds remain, impacting both top and bottom line performance. We will partially offset these headwinds in the fourth quarter by making progress on the urgent agenda items that I presented at the Investor Meeting last month. We have opportunities to become better shopkeepers, to execute the everyday business better. And finally, we are developing long-term plans for the business. These actions will take time, but I believe they will make us a stronger business, and allow us to sustainably grow beyond our fair share of opportunity. Now, let’s turn to this quarter’s performance. Net sales grew $2.3 billion, or 3.4%. For the 13-week period ended October 31, comparable sales were up 0.5%. This is the first positive comp for the Walmart U.S. business in seven quarters despite approximately 70 basis points of impact from SNAP-related headwinds. Ticket was up 1.2%, while traffic declined 0.7%. Note that traffic improved 40 basis points from Q2 and 70 basis points from Q1. Within the business, we’ve had several areas driving top line growth. First, we’re encouraged by sales performance during key seasonal events. We started the quarter with a strong back-to-school program across categories in apparel, home, and traditional back-to-school supplies. And we ended the quarter well, executing a strong Halloween event. This led to positive performance in…

Thank you, Greg. Overall, we had a solid third quarter, once again growing operating income faster than sales and gaining market share in most of our largest markets. While sales growth slowed some on a constant currency basis compared with the first-half of the year, sales trends improved in the latter part of the quarter in markets such as Canada and Mexico. Customers remain challenged across most of the globe, but our teams continue to do a great job of serving these customers by helping them save time and money. The team is aligned on key strategies that we discussed in the October Investor Meeting. We’re making significant progress on driving price leadership and widening or maintaining our price gap across key markets. We’re excited about steps we’ve taken this quarter to accelerate growth in e-commerce, including the launch of additional online offerings in Mexico and China and collection points for online customers in the U.K. and China. We also remain focused on being the most trusted retailer wherever we operate. For example, Walmart China recently launched a Worry Free Fresh program starting with 49 stores providing our customers with a money-back satisfaction guarantee when buying fresh produce and meats. On October 30, we announced the future closing of around 30 underperforming stores in Japan that will allow us to continue to focus on the key elements of the business, such as e-commerce, price leadership, and fresh. While these decisions are never taken lightly, we will continuously assess our portfolio of businesses to ensure that we are focusing our efforts on the things that matter most to our shareholders and customers. Though there is always room for improvement, we feel good about our third quarter results. Net sales grew 2.9% on a constant currency basis or 1.7% on a reported…

Thanks Dave. Sam’s Club delivered strong profit growth this quarter with operating income up 5.3% without fuel and 12% with fuel. We’ve continued to execute strategic investments in membership, merchandise newness, and the intersection of digital and physical. Sam’s posted a comp increase without fuel of 40 basis points for the 13-week period ended October 31. We’re pleased that this growth represents a cumulative improvement of 90 basis points over the 39-week period. Although we have lapped our fiscal year 2014 fee increase, our third quarter membership income growth remained strong at 10.1%. Clearly, our members have continued to respond positively to our efforts to enhance membership value. Since June 2014, the launch of Cash Rewards has improved our Plus penetration by about 4 percentage points. Additionally, our operators have really gotten behind our 5:3:1 cash-back MasterCard, which is not only chip-enabled to protect our members from fraud, but also stands as the best cash-back program in the market today. Along with instant savings, these programs speak to our commitment that a Sam’s Club membership is the most valuable card in the members’ wallets. Now, let me review our financial results and highlights from the quarter, excluding fuel. For results with fuel, please reference the supplemental presentation. In Q3, comp sales increased 0.4% driven by relatively balanced growth in traffic and ticket. Traffic remains up among the Savings members, with pressure from fewer trips within our Business members. Retail inflation across the club averaged low single-digits with inflation higher in certain areas such as dairy and meat, offset by deflation in other areas, including technology. Net sales grew 2.3% to $12.7 billion, and operating income grew 5.3% to $455 million. Our gross profit rate declined 43 basis points this quarter with a significant portion attributable to our investment in Plus…

Thanks, Roz. Overall, we are encouraged by the progress we made in the quarter. We continued to focus on driving stronger sales and improving customer service. Let me summarize the key takeaways from the third quarter. Earnings per share of $1.15 were at the midpoint of our guidance. Walmart U.S. delivered its first positive comp in seven quarters. Consolidated net sales increased $3.2 billion, with Walmart U.S. contributing $2.3 billion of the increase. Walmart International once again grew operating income faster than sales, and we gained market share in most of our largest markets despite the economic conditions in those markets. Sam’s Club delivered operating income growth of 5% without fuel, due to stronger membership income. E-commerce sales grew approximately 21% on a global basis and we made initial progress on working capital management an ongoing priority for all of our finance teams. Now, let’s move on to guidance for both the fourth quarter and the full-year. Our earnings guidance today assumes several important factors, including the economic conditions in several of our largest markets and a highly promotional holiday season, especially in the U.S. As a reminder, our full-year earnings per share guidance includes the four factors we discussed last quarter, which were higher than anticipated healthcare costs in the U.S., incremental investments in e-commerce, ongoing investments in Sam’s Club, and our effective tax rate, which we expect to range between 32 to 34%. Last quarter, we shared that the incremental investment in e-commerce for fiscal 2015 is expected to range between $0.05 and $0.07 per share. Year-to-date, we have incurred approximately $0.04 per share of the incremental investment. On October 15, at our Investor Meeting, we also shared with you that we plan to step up our investments again next fiscal year given the priorities we have for…