Welcome. This is Carol Schumacher, Vice President of Global Investor Relations for Wal-Mart Stores, Inc. Thanks for joining us today to review the results for the second quarter of fiscal 2016. The date of this call is August 18, 2015. This call is the property of Wal-Mart Stores, Inc. and is intended for the use of Wal-Mart shareholders and the investment community. It should not be reproduced in any way. For those listening on the phone, you may navigate through the call as follows. Press 4 and the hash tag key to rewind playback 20 seconds. Press 5 and the hash tag key to pause and resume playback. Press 6 and the hash tag key to fast-forward playback 20 seconds. This call contains statements that Wal-Mart believes 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 later in this call. All materials related to today’s news are available on the investors’ portion of our corporate website stock.Wal-Mart.com. The terms used in today’s release including EPS, constant currency, gross profit, gross profit rate and gross merchandise value are defined there as well. We recommend that you review the earning’s press release in conjunction with the transcript of this call and the accompanying slide presentation. The slide presentation has a lot of the financial data that previously used to be included in the transcript. Global unit count data is also on our investor’s website. Now, when we refer to traditional Neighborhood Markets in Wal-Mart U.S., we are discussing those that average 42,000 square feet of retail space. The…

Thanks, Carol, and good morning everyone. Thank you for joining us to hear more about our second quarter earnings and get an update on how things are progressing relative to our strategy. We just returned from our Wal-Mart U.S. holiday meeting in Denver. As you may know we gather all of our store managers and market managers to talk about the plan for the holiday season and take stock of where are as a business. I can tell you that the feeling in the room was as good as it’s been in years. Our stores in the US are getting better, our associates are happier and our managers are leading it. I talked with our managers about how our company has always changed to serve customers. And we are in another period of change right now. I shared an article from Fortune magazine that I keep in my office titled “Can Wal-Mart get back the magic.” It’s a pretty strong indictment of our future. And the fun fact is that, it was written in 1996. Just as it was in 1996, we will win the future of retail if we make the right choices as a business. We have a strong point of view on what that future will look like. Through technology, data and mobile we have incredible new ways to serve customers today and the opportunities are only growing. We believe the winners in retail will be those who can bring together the best of the offline world with the best of online to serve customer however they want to shop and we believe Wal-Mart has unique competitive advantages in this race. We’re moving forward on our enterprise strategy to position ourselves to win, playing offence, which is the only way to play in retail. This is true…

Thanks Dough. We delivered a lot during the quarter, at Wal-Mart U.S., at Sam’s Club and in our key markets around the world. All possible because of the groundwork we laid over the last few years. As a quick recap, we have re-platformed both our technology and physical distribution network for eCommerce. The technology platform Pangaea is consistently improving the customer experience and conversion for Walmart.com, which has led to solid sales growth. We have created a U.S. grocery home shopping business that is getting great reviews from our customers. And we’ve developed eCommerce at Sam’s Club and in key markets around the world notably in Brazil and in China. All of this was made possible because we have a built talent dense Internet technology company inside of Walt-Mart. We are now able to create new experiences for customers across digital and physical. Overall Global eCommerce constant currency sales grew approximately 16%. GMV or gross merchandise value grew approximately 18% on a constant currency basis. The highlight was solid growth in the Walmart.com and samsclub.com U.S. businesses while international was soft due to economic challenges in several of our key markets. Because of the softness in international we are resetting our Global eCommerce sales growth forecast for this fiscal year from the mid 20s to a range in the mid to high teens. As I mentioned both businesses in the U.S. are going very well. A great example of how everything came to life with our Walmart.com Dare to Compare event that we kicked off in July. This event created a perfect opportunity to highlight that customers can trust us to offer them the assortment they want at low prices everyday, not just during a one day sale. We were able to use our technology platform and sophisticated pricing algorithms…

Thank you, Neil. As Doug mentioned, we are encouraged by our top line growth particularly traffic. Our bottom line came in substantially below what was planned, three major factors contributed to our underperformance, a decline in gross margin primarily related to lower than expected pharmacy reimbursements and accelerating pressures as well as higher than planned investment in store house, which was essential to improving the customer experience. I want to be straight forward; these issues will present continuing profit challenges for the remainder of the year. We are certainly disappointed but we are not standing still. We know we can do better and we will. For the Wal-Mart U.S. business doing better means staying focused on an aggressive strategic plan to improve the customer experience in our stores and deliver sustainable top and bottom line growth for the long-term. The strategic plan includes a number of large specific projects that fit within our broader focus on assortment, price, excise and customer experience. This plan requires significant investments and we are confident we are making the right decision for our customers and our business. Amid the investment we are focused on growing sales and controlling cost as you would expect from Wal-Mart, we are staying true to our roots, however we are committed to improving the customer experience and we will protect the investments necessary to achieve this goal. Let me dig in a bit on details, I’m pleased to report that we have seen progress on our top line as net sales for the second quarter were up 4.8% and comp sales increased 1.5%. We also improved inventory making our goal to grow inventory less than sales growth. Additionally, we have seen improvements in traffic and customer experience from these actions. Each decision was in line with the strategy we…

Thanks Greg. The international business had a fairly solid quarter given tough economic environments in certain markets and ongoing currency impacts. In Q2, we saw accelerating sales growth in Mexico and Canada offsetting ongoing challenges in the UK, Brazil and China. Overall I continue to be enthusiastic about our long-term prospects to profitably grow our international business in a controlled and disciplined manner. Similar to last quarter, the performance in Mexico and Canada continue to be solid. Our Mexico team has done an excellent job reenergizing that business driving strong performance across all formats. We continue to see significant growth opportunities in Mexico along with the improving core business. In Canada, we continue to gain market share driven by our fifth consecutive quarter of positive comps. These two markets will continue to play a key role in our back half performance. I’ll provide more details on key market performance in a few minutes. Now let’s jump to overall results. In the second quarter net sales grew 2.8% on a constant currency basis despite headwinds in Latin America from lapping last year’s World Cup and the timing shifted Easter. The U.S. dollar remains strong, which led to a currency impact of $4.2 billion resulting in a 9.6% sales decline on a reported basis. Comp sales were positive in Mexico and Canada while the UK, Brazil and China posted negative comps. All other markets had positive comp sales. Operating income declined 1.5% on a constant currency basis. Negatively impacted by increased employment claim contingences and higher than expected utility rates in Brazil as well as continued investments in global ecommerce. This was partially offset by gains from the sale of the bank operations in Mexico and certain properties in Canada. Excluding the impact of these items operating income would have grown faster…

Thanks Dave. We were pleased that our investments are contributing to improvement in Sam’s Club. In the second quarter, we grew comp sales without – 1.3% and net sales 2.8%. Our square footage also grew due to three new clubs opening during the quarter. We are accelerating our efforts to strengthen the Sam’s Club member value proposition. Since last year, our investments have been targeted to better merchandize assortment, membership acquisition, engagement and retention, new programs to enhance member value and our investment in eCommerce. By staying on a consistent path and driving these priorities we continue to simplify our business. We saw the benefits in improved membership trends in higher traffic during the second quarter what is most important is the overwhelmingly positive feedback we are hearing from our members not just about our clubs but also about improvement in the eCommerce experience. I will provide some examples shortly. Now on to the numbers, with fuel operating income declined by 13.4% to $428 million, fuel profitability improved from Q1 but it is still below planned levels and below last year’s dollars. For additional results with fuel please reference the accompanying presentation. Net sales without fuel grew 2.8%, comp sales without fuel were up 1.3% with ticket contributing 80 basis points and traffic 50 basis points. Savings member traffic was positive partially offset by a decline in business member traffic. Our gross profit rate declined 38 basis points versus last year driven in part by our ongoing cash rewards investment, increased seasonal markdowns and industry headwinds in pharmacy prescriptions similar to those referenced in the Wal-Mart U.S. business. Operating expenses as a percentage of net sales increased by 13 basis points due to continued investments in new clubs, technology and eCommerce. Membership and other income grew 6.1% with membership income…

Thanks Ros. I will start with the top line. We are pleased with the sales increase as we saw in the U.S. as well is in our international businesses when considering cost of currency. We believe traffic and comp sales increases for Wal-Mart U.S. show we are on the right track with their investments. Wal-Mart U.S. now has had positive comps for four straight quarters. As expected these investments impacted both operating expenses and profits. In addition, Wal-Mart U.S. experienced gross margin pressure from pharmacy and shrink that we had not expected. Looking forward at the rest of the year operating profit will be pressured more than we originally planned this is primarily driven by the headwinds to Wal-Mart U.S. gross margins that I just mentioned. We will continue to scrutinize and evaluate how we manage our capital in order to optimize both the customer experience and returns. Before I turn to guidance, let me cover some other items. You may have read in our earnings release, that we are reviewing leases across all of our segments. This is part of a comprehensive ongoing lease review. One item that we are focusing on and may need to be corrected relates to leases where our payment of certain structural component costs during a lesser construction of the leased store causes us to be deemed the owner of the property for accounting purposes. This results in capitalizing these leased assets on our balance sheet. We don’t know the impact of our financial statements but believe it mostly to be a balance sheet issue at this time. We will provide more information once the review is complete. Turing to cash, during the quarter we spent approximately $760 million to acquire the remaining shares of Yihaodian. A strategic acquisitions for eCommerce growth in China.…

This call included certain forward-looking statements intended to enjoy the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements relate to management’s guidance as to and forecast and expectations for. With respect to Wal-Mart as a whole, Wal-Mart’s earnings per share for all fiscal 2015 and 2016’s third quarter assumptions regarding the impact on Wal-Mart’s earnings per share for all of fiscal 2016 and fiscal 2016’s third quarter with respect to investment and wages, training an additional hours in Wal-Mart U.S. Incremental investment in global eCommerce and unplanned expense headwinds primarily Wal-Mart U.S. pharmacy margins and higher than expected – continuing through fiscal 2016 and the impact of currency exchange rate fluctuations on Wal-Mart’s earnings per share for all of fiscal 2016. Wal-Mart’s effective tax rate for all of fiscal 2016 and the fluctuation of Wal-Mart’s effective tax rate from quarter-to-quarter. Comparable store sales of the Wal-Mart U.S. and comparable club sales without fuel of Sam’s Club for the 13 week period ending October 30, 2015, the revised range of the overall percentage growth of global eCommerce sales in fiscal 2016, Wal-Mart continuing to grow over the longer term in key markets and further integrating its stores in the eCommerce offerings. Wal-Mart’s consolidated operating income for fiscal 2016 last half being pressured more than originally planned primarily by Wal-Mart U.S. expense headwinds, investments and its operations and strength. The effects of investments in Wal-Mart U.S. and Wal-Mart’s results the expenses to be incurred for SCPI related matters during all of fiscal 2016 and expenses incurred for such matters continuing to trend down, Wal-Mart remaining opportunistic with share repurchases throughout fiscal 2016. Wal-Mart’s sales trends not being linear up into the right, Wal-Mart managing operating expenses in gross margin and cutting cost were…