Walmart - a Financial Appraisal

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Group 5

Cawas Katrak

David Armendariz

Nirali Desai

Esteban Huertas

Brett Walker

Shahid Wazirali

July 30, 2003

WAL-MART STORES, INC. (WMT)

Part I Background Analysis:

Sector: Retail

Industry: Discount, Variety Stores

Employees: 1 Million

Exchange Traded: NYSE

Ticker Symbol: WMT

Stock Price: $57.32

Daily Trading Volume: 8.042 Mil

COMPANY INFORMATION

Wal-Mart Stores, Inc., incorporated in 1969, is an international retailer. In the United States, the Company operated 1,568 discount stores, 1,258 Super centers, 525 SAM's CLUBs and 49 Neighborhood Markets as of January 31, 2003. Internationally, it operated units in Argentina (11), Brazil (22), Canada (213), Germany (94), South Korea (15), Mexico (597), Puerto Rico (52) and the United Kingdom (258), and, under joint venture agreements, in China (26). Additionally, it holds, on a fully diluted basis, a 35% interest in The Seiyu, Ltd., a Japanese retail chain. The Company operates in all 50 states in the United States.

The Company's mass merchandising operations serve its customers primarily through the operation of three segments. It identifies those segments based on management responsibility within the United States and geographically for all international units. The Wal-Mart Stores segment includes its discount stores, Super centers and Neighborhood Markets in the United States. The SAM's CLUB segment includes the warehouse membership clubs in the United States. The International segment includes all of its operations in Argentina, Brazil, Canada, China, Japan, Germany, Korea, Mexico, Puerto Rico and the United Kingdom.

Wal-Mart Stores

Wal-Mart discount stores range in size from 30,000 square feet to 219,000 square feet, with the average size of a discount store being approximately 96,883 square feet. Wal-Mart Super centers are located in 43 states. Super centers range in size from 90,000 square feet to 261,000 square feet, with the average size of a Super center...