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<SEC-DOCUMENT>/in/edgar/work/20000608/0000104169-00-000004/0000104169-00-000004.txt : 20000919
<SEC-HEADER>0000104169-00-000004.hdr.sgml : 20000919
ACCESSION NUMBER:		0000104169-00-000004
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20000430
FILED AS OF DATE:		20000608

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WAL MART STORES INC
		CENTRAL INDEX KEY:			0000104169
		STANDARD INDUSTRIAL CLASSIFICATION:	 [5331
]		IRS NUMBER:				710415188
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		10-Q
			SEC ACT:		
			SEC FILE NUMBER:	001-06991
			FILM NUMBER:		651411
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		702 SOUTHWEST 8TH ST
				CITY:			BENTONVILLE
				STATE:			AR
				ZIP:			72716
				BUSINESS PHONE:		5012734000
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		702 SOUTHWEST 8TH STREET
					CITY:			BENTONVILLE
					STATE:			AR
					ZIP:			72716
</MAIL-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>0001.htm
<TEXT>

<HTML>

<head>
</head>

<body LINK="#7f7f00">
<font FACE="Courier New"><b>

<p ALIGN="CENTER">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</p>

<p ALIGN="CENTER">FORM 10-Q</p>

<p>(Mark One)</p>
</b>

<p ALIGN="JUSTIFY">[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended <u>April 30, 2000</u>.</p>

<p ALIGN="CENTER">or</p>

<p ALIGN="JUSTIFY">[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ______to______.</p>

<p ALIGN="JUSTIFY">Commission file number <u>1-6991</p>
</u>

<p ALIGN="center"><u>WAL-MART STORES, INC.</u><br>
(Exact name of registrant as specified in its charter)</p>
<u>

<p></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Delaware</u>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>71-0415188</u><br>
(State or other jurisdiction of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(I.R.S. Employer<br>
incorporation or organization)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Identification No.)</p>

<p>&nbsp;&nbsp;&nbsp; 702 S.W. Eighth Street<br>
&nbsp;&nbsp;&nbsp;&nbsp; <u>Bentonville, Arkansas&nbsp;&nbsp;&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>72716</u><br>
(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)</p>

<p align="center"><u>(501) 273-4000</u><br>
(Registrant&#146;s telephone number, including area code)</p>

<p align="center"><u>Not applicable</u><br>
(Former name, former address and former fiscal year,<br>
if changed since last report)</p>

<p ALIGN="left">Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter periods that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Yes __<u>X</u>__ No _____</p>

<p ALIGN="CENTER">Applicable Only to Issuers Involved in Bankruptcy<br>
Proceedings During the Preceding Five Years</p>

<p ALIGN="JUSTIFY">Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange
Act of 1934 subsequent to the distribution of securities under a plan confirmed by the
court.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Yes _____ No _____</p>

<p ALIGN="CENTER">Applicable Only to Corporate Issuers</p>

<p ALIGN="JUSTIFY">Indicate the number of shares outstanding of each of the issuer&#146;s
classes of common stock, as of the latest practical date.</p>

<p ALIGN="JUSTIFY">Common Stock, $.10 Par Value &#150; 4,464,876,693 shares as of April
30, 2000.</p>

<p ALIGN="center"><strong>Page 1 of 15 (Form 10-Q)</strong></p>

<p ALIGN="center">&nbsp;</p>
<b>

<p ALIGN="CENTER">PART I. FINANCIAL INFORMATION</p>

<p ALIGN="JUSTIFY">Item 1. Financial Statements</p>
</b></font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2">
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New"><b><p ALIGN="CENTER">WAL-MART
    STORES, INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLIDATED BALANCE SHEETS<br>
    (Amounts in millions)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="bottom"><font FACE="Courier New"><b><u><p ALIGN="JUSTIFY">ASSETS</u></b></font></td>
    <td WIDTH="18%" VALIGN="TOP"><font FACE="Courier New"><b><p ALIGN="CENTER">April 30,<br>
    <u>2000</u><br>
    (Unaudited)</b></font></td>
    <td WIDTH="17%" VALIGN="TOP"><font FACE="Courier New"><b><p ALIGN="CENTER">January 31,<br>
    <u>2000</u><br>
    (* Note)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Cash and cash
    equivalents</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; $ 1,360</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $ 1,856</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Receivables</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    1,265</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,341</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Inventories</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    20,971</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 19,793</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Prepaid expenses
    and other</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;
    1,505</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 1,366</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Total current assets</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    25,101</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 24,356</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Property, plant
    and equipment, at cost</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    42,464</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 41,063</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Less accumulated
    depreciation</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;
    8,563</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 8,224</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Net property, plant and equipment</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    33,901</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 32,839</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Property under
    capital leases</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    4,288</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    4,285</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Less accumulated
    amortization</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;
    1,195</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 1,155</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Net property under capital leases</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    3,093</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    3,130</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net goodwill and other acquired
    intangible<br>
    &nbsp;&nbsp;&nbsp; assets</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    9,604</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    9,392</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Other assets and
    deferred charges</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;
    664</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;
    632</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Total assets</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <strong><u>$
    72,363</u></strong></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New"><strong>$ 70,349</strong></font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New"><u><b>LIABILITIES AND SHAREHOLDERS'
    EQUITY</b></u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Commercial paper</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $&nbsp; 4,759</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $ 3,323</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Accounts payable</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    13,160</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 13,105</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Accrued
    liabilities</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    5,913</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    6,161</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Other current
    liabilities</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;
    3,792</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 3,214</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Total current liabilities</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    27,624</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 25,803</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Long-term debt</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    12,778</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 13,672</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Long-term
    obligations under capital leases</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    2,928</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    3,002</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Deferred income
    taxes and other</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    817</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    759</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Minority interest</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    1,075</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,279</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Common stock and
    capital in excess of par<br>
    &nbsp; value</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    1,718</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,160</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Retained earnings</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    26,004</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 25,129</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><p ALIGN="JUSTIFY">Other accumulated
    comprehensive income</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; <u>(
    581)</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>( 455)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Total shareholders' equity</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>27,141</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>25,834</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p ALIGN="JUSTIFY">Total liabilities and shareholders'<br>
      &nbsp; equity</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <strong><u>$
    72,363</u></strong></font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><u><font FACE="Courier New"><strong>$ 70,349</strong></font></u></td>
  </tr>
</TABLE>
<font FACE="Courier New">

<p>See accompanying notes to condensed consolidated financial statements.</p>

<p>*Note: The balance sheet at January 31, 2000, has been derived from the audited
financial statements at that date, and condensed.</p>
<b>

<p ALIGN="CENTER">Page 2 of 15 (Form 10-Q)</p>
</b></font>

<p ALIGN="CENTER">&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2">
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New"><b><p ALIGN="CENTER">WAL-MART
    STORES, INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLDIATED STATEMENTS OF INCOME<br>
    </b>(Unaudited)<br>
    (Amounts in millions except per share data)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"></td>
    <td WIDTH="34%" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New"><p ALIGN="center">Three
    Months Ended<br>
    <u>April 30,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New">Revenues:</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Net sales</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; $42,985</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $34,717</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Other income - net</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;
    462</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;
    412</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    43,447</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 35,129</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New">Costs and expenses:</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Cost of sales</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    33,665</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 27,241</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Operating, selling and genenal<br>
      &nbsp; and administration expenses</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    7,318</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    5,888</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Interest costs:</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Debt</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    263</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    127</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Capital leases</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;
    67</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;
    64</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>41,313</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>33,320</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Income before income taxes, minority<br>
    &nbsp;&nbsp;&nbsp; interest, equity in unconsolidated<br>
    &nbsp;&nbsp;&nbsp; subsidiaries and cumulative effect<br>
    &nbsp;&nbsp;&nbsp; of accounting change</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    2,134</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,809</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Provision for income taxes</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;
    785</u></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;
    662</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Income before minority interest,
    equity<br>
    &nbsp;&nbsp;&nbsp; in unconsolidated subsidiaries and<br>
    &nbsp;&nbsp;&nbsp; cumulative effect of accounting change</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    1,349</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,147</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Minority interest and equity in <br>
    &nbsp;&nbsp;&nbsp; unconsolidated subsidiaries</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; <u>&nbsp;
    ( 23)</u></font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp; <u>&nbsp;
    ( 33)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Income before cumulative effect of<br>
    &nbsp;&nbsp;&nbsp; accounting change</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    1,326</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    1,114</font></td>
  </tr>
  <tr>
    <td WIDTH="101%" VALIGN="TOP" colspan="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Cumulative effect of accounting
    change,<br>
    &nbsp;&nbsp;&nbsp; net of tax benefit of $119</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    - </u></font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; (
    198)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net income</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New"><strong>&nbsp; <u>$
    &nbsp; 1,326</u></strong></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New"><strong>$
    &nbsp;&nbsp;&nbsp; 916</strong></font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net income per common share:</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Basic net income per common share</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Income before cumulative<br>
      &nbsp;&nbsp;&nbsp; effect of accounting change</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; $
    &nbsp;&nbsp;&nbsp; .30</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">$
    &nbsp;&nbsp;&nbsp; .25</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Cumulative effect of accounting<br>
      &nbsp;&nbsp;&nbsp; change, net of tax</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    - </u></font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; (
    .04)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Net income per common share</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New"><strong>&nbsp; <u>$
    &nbsp;&nbsp;&nbsp; .30</u></strong></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New"><strong>$
    &nbsp;&nbsp;&nbsp; .21</strong></font></u></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Average number of common shares</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    4,457</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    4,449</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Diluted net income per common share</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP"></td>
    <td WIDTH="17%" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Income before cumulative effect<br>
      &nbsp;&nbsp;&nbsp; of accounting change</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; $
    &nbsp;&nbsp;&nbsp; .30</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">$
    &nbsp;&nbsp;&nbsp; .25</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New"><blockquote>
      <p>&nbsp; Cumulative effect of accounting<br>
      &nbsp;&nbsp;&nbsp; change, net of tax</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    - </u></font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; (
    .04)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Net income per common share</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New"><strong>&nbsp; <u>$
    &nbsp;&nbsp;&nbsp; .30</u></strong></font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New"><strong>$
    &nbsp;&nbsp;&nbsp; .20</strong></font></u></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Average number of common shares</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    4,478</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    4,472</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" HEIGHT="36"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Dividends per share</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $&nbsp; .0600</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">$&nbsp; .0500</font></td>
  </tr>
</TABLE>
<font FACE="Courier New">

<p ALIGN="CENTER">See accompanying notes to condensed consolidated financial statements.</p>
</font>

<p ALIGN="CENTER"><strong><font FACE="Courier New">Pages 3 &amp; 4 of 15 (Form 10-Q)</font></strong></p>

<p ALIGN="CENTER">&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2">
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New"><b><p ALIGN="CENTER">WAL-MART STORE,
    INC. AND SUBSIDIARIES<br>
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br>
    </b>(Unaudited)<br>
    (Amounts in millions)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"></td>
    <td WIDTH="34%" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New"><b><p ALIGN="CENTER">Three
    Months Ended<br>
    April 30,<br>
    <u>2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></b></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New">Cash flows from operating
    activities:</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Net income</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">$&nbsp; 1,326</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">$&nbsp;&nbsp; 916</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Adjustments to reconcile net income
    to net<br>
    &nbsp;&nbsp;&nbsp; cash provided by operating activities:</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Depreciation and amortization</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    656</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    530</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Cumulative effect of accounting<br>
      &nbsp;&nbsp;&nbsp; change, net of tax</p>
      </font>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    198</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Increase in inventories</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">(&nbsp; 1,217)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">( 1,073)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Increase in accounts payable</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    69</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 1,005</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>&nbsp; Other</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    47</font></u></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp; ( 30)</font></u></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net cash provided by operating
    activities</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    881</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp; 1,546</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Cash flows from investing
    activities:</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Payments for property, plant &amp;<br>
      &nbsp; equipment</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">(&nbsp; 1,730)</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">( 1,110)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Investments in international<br>
      &nbsp; operations</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">( &nbsp;&nbsp;&nbsp;
    617)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Other investing activities</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    28</font></u></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    28</font></u></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net cash used in investing
    activities</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">(&nbsp; 2,319)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">( 1,082)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Cash flows from financing
    activities:</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Increase in commercial paper</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    446</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Dividends paid</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">( &nbsp;&nbsp;&nbsp;
    267)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">(&nbsp;&nbsp; 222)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Payment of long-term debt</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">( &nbsp;&nbsp;&nbsp;
    729)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">( &nbsp;&nbsp;&nbsp;
    39)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Proceeds from issuance of long-term<br>
      &nbsp; debt</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    997</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Purchase of Company Stock</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">( &nbsp;&nbsp;&nbsp;
    193)</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">(
    &nbsp;&nbsp;&nbsp;&nbsp; 9)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Proceeds from issuance of Company<br>
      &nbsp; Stock</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    582</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><blockquote>
      <font FACE="Courier New"><p>Other financing activities</font></p>
    </blockquote>
    </td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    106</font></u></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New"><u>( &nbsp;&nbsp; 106</u>)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net cash provided by (used in)
    financing<br>
    &nbsp;&nbsp;&nbsp; activities</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    942</font></u></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New"><u>( &nbsp;&nbsp;
    376</u>)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Net increase (decrease) in cash and
    cash<br>
    &nbsp;&nbsp;&nbsp; equivalents</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">(
    &nbsp;&nbsp;&nbsp; 496)</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    88</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Cash and cash equivalents at
    beginning<br>
    &nbsp;&nbsp;&nbsp; of year</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;
    1,856</font></u></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><u><font FACE="Courier New">&nbsp; 1,879</font></u></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Cash and cash equivalents at end of<br>
    &nbsp;&nbsp;&nbsp; period</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><u><font FACE="Courier New">$ &nbsp; 1,360</font></u></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><u><font FACE="Courier New">$ 1,967</font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"><font FACE="Courier New">Supplemental disclosure of cash flow
    information:</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Income taxes paid</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">$ &nbsp;&nbsp;&nbsp;
    361</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">$&nbsp;&nbsp; 418</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Interest paid</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    424</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    179</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Capital lease obligations incurred</font></td>
    <td WIDTH="18%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    41</font></td>
    <td WIDTH="17%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    197</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" VALIGN="TOP"><font FACE="Courier New">Property, plant and equipment
    acquired<br>
    &nbsp;&nbsp;&nbsp; with debt</font></td>
    <td WIDTH="18%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    -</font></td>
    <td WIDTH="17%" VALIGN="bottom" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    42</font></td>
  </tr>
</TABLE>
<font FACE="Courier New">

<p>See accompanying notes to condensed consolidated financial statements.</p>

<p align="center"><strong>Page 5 of 15 (Form 10-Q)</strong></p>

<p align="center">&nbsp;</p>
<b>

<p ALIGN="CENTER">WAL-MART STORES, INC. AND SUBSIDIARIES<br>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>

<p ALIGN="CENTER">&nbsp;</p>

<blockquote>
  <p ALIGN="JUSTIFY"></b><u>NOTE 1. Basis of Presentation<b></p>
  </u>
</blockquote>
</b>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The condensed consolidated balance sheet as of April
30, 2000, and the related condensed consolidated statements of income for the three month
periods ended April 30, 2000, and 1999, and the condensed consolidated statements of cash
flows for the three-month periods ended April 30, 2000, and 1999, are unaudited. In the
opinion of management, all adjustments necessary for a fair presentation of the financial
statements have been included. Other than the restatement for the accounting change that
was recorded in the first quarter of fiscal 2000, the adjustments consisted only of normal
recurring items. Interim results are not necessarily indicative of results for a full
year. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The financial statements and notes are presented in
accordance with the rules and regulations of the Securities and Exchange Commission and do
not contain certain information included in the Company&#146;s annual report. Therefore,
the interim statements should be read in conjunction with the Company's annual report for
the fiscal year ended January 31, 2000.</p>

<blockquote>
  <p ALIGN="JUSTIFY"><u>NOTE 2. Net Income Per Share</p>
  </u>
</blockquote>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Basic net income per share is based on the weighted
average outstanding common shares. Diluted net income per share is based on the weighted
average outstanding shares reduced by the dilutive effect of stock options (21 million and
29 million shares for the for the quarters ended April 30, 2000 and 1999, respectively).</p>

<blockquote>
  <p ALIGN="JUSTIFY"><u>NOTE 3. Inventories</p>
  </u>
</blockquote>
</font><font SIZE="2">

<p ALIGN="JUSTIFY"></font><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company uses the
retail last-in, first-out (LIFO) method for the Wal-Mart Stores segment, cost LIFO for the
Sam&#146;s Club segment, and other cost methods, including the retail first-in, first-out
(FIFO) and average cost methods, for the International segment. Inventories are not in
excess of market value. Quarterly inventory determinations under LIFO are partially based
on assumptions as to inventory levels at the end of the fiscal year, sales and the rate of
inflation for the year. If the FIFO method of accounting had been used domestically by the
Company, inventories at April 30, 2000, would have been $388 million higher than reported,
which is an increase in the LIFO reserve of $10 million from January 31, 2000. If the FIFO
method had been used at April 30, 1999, inventories would have been $453 million higher
than reported, which is a decrease in the LIFO reserve of $20 million from January 31,
1999. </p>

<p ALIGN="JUSTIFY">&nbsp;</p>

<blockquote>
  <p ALIGN="JUSTIFY"><u>NOTE 4. Segments</p>
  </u>
</blockquote>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company is principally engaged in the operation
of mass merchandising stores that serve customers primarily through the operation of three
segments. The Company identifies its segments based on management responsibility within
the United States and geographically for</p>

<p ALIGN="center"><strong>Page 6 of 15 (Form 10-Q)</strong></p>

<p ALIGN="JUSTIFY">all international units. The Wal-Mart Stores segment includes the
Company&#146;s discount stores and Supercenters in the United States. The Sam&#146;s Club
segment includes the warehouse membership clubs in the United States. The International
segment includes all operations in Argentina, Brazil, Canada, China, Germany, Korea,
Mexico, Puerto Rico and the United Kingdom. The revenues in the &quot;Other&quot; category
result from sales to third parties by McLane Company, Inc., a wholesale distributor.</p>

<p ALIGN="JUSTIFY">Net sales by operating segment were as follows (in millions):</p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2">
  <tr>
    <td WIDTH="58%" VALIGN="TOP"></td>
    <td WIDTH="42%" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New"><p ALIGN="CENTER">Three
    Months Ended<br>
    <u>April 30,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="58%" VALIGN="TOP"><font FACE="Courier New">Wal-Mart Stores</font></td>
    <td WIDTH="22%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $27,540</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; $23,926</font></td>
  </tr>
  <tr>
    <td WIDTH="58%" VALIGN="TOP"><font FACE="Courier New">Sam's Club</font></td>
    <td WIDTH="22%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    6,079</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    5,580</font></td>
  </tr>
  <tr>
    <td WIDTH="58%" VALIGN="TOP"><font FACE="Courier New">International</font></td>
    <td WIDTH="22%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    7,197</font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    3,291</font></td>
  </tr>
  <tr>
    <td WIDTH="58%" VALIGN="TOP"><font FACE="Courier New">Other</font></td>
    <td WIDTH="22%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 2,169</u></font></td>
    <td WIDTH="20%" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp; 1,920</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3"></td>
  </tr>
  <tr>
    <td WIDTH="58%" VALIGN="TOP" HEIGHT="30"><font FACE="Courier New">Total Net Sales</font></td>
    <td WIDTH="22%" VALIGN="TOP" HEIGHT="30" align="right"><font FACE="Courier New">&nbsp; <strong><u>$42,985</u></strong></font></td>
    <td WIDTH="20%" VALIGN="TOP" HEIGHT="30" align="right"><font FACE="Courier New"><strong>&nbsp;
    <u>$34,717</u></strong></font></td>
  </tr>
</TABLE>
<font FACE="Courier New">

<p ALIGN="CENTER">&nbsp;</p>

<p>Operating profit and reconciliation to income before income taxes, minority interest,
equity in unconsolidated subsidiaries and cumulative effect of accounting change are as
follows (in millions):</p>
</font>

<table CELLSPACING="0" BORDER="0" CELLPADDING="2" width="563">
  <tr>
    <td WIDTH="331" VALIGN="TOP"></td>
    <td WIDTH="224" VALIGN="TOP" COLSPAN="3"><font FACE="Courier New"><p ALIGN="CENTER">Three
    Months Ended<br>
    <u>April 30,<br>
    2000</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="4" width="559"></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Wal-Mart Stores</font></td>
    <td WIDTH="111" VALIGN="TOP" align="right"><font FACE="Courier New">$&nbsp; 2,160</font></td>
    <td WIDTH="109" VALIGN="TOP" COLSPAN="2" align="right"><font FACE="Courier New">$ &nbsp;
    1,797</font></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Sam's Club</font></td>
    <td WIDTH="111" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    189</font></td>
    <td WIDTH="109" VALIGN="TOP" COLSPAN="2" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    171</font></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">International</font></td>
    <td VALIGN="top" width="111" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    149</font></td>
    <td VALIGN="top" COLSPAN="2" width="109" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    62</font></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Other</font></td>
    <td VALIGN="top" COLSPAN="2" width="125" align="right"><font FACE="Courier New">&nbsp; <u>&nbsp;&nbsp;&nbsp;
    ( 34</u>)</font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New"><u>&nbsp;&nbsp;&nbsp; (
    30</u>)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="4" width="559"></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Operating profit</font></td>
    <td WIDTH="111" VALIGN="TOP" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    2,464</font></td>
    <td WIDTH="109" VALIGN="TOP" COLSPAN="2" align="right"><font FACE="Courier New">&nbsp;&nbsp;&nbsp;
    2,000</font></td>
  </tr>
  <tr>
    <td WIDTH="559" VALIGN="TOP" colspan="4"></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Interest expense</font></td>
    <td WIDTH="111" VALIGN="TOP" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    330</font></u></td>
    <td WIDTH="109" VALIGN="TOP" COLSPAN="2" align="right"><u><font FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;
    191</font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="4" width="559"></td>
  </tr>
  <tr>
    <td WIDTH="331" VALIGN="TOP"><font FACE="Courier New">Income before income taxes,<br>
    &nbsp; minority interest, equity<br>
    &nbsp; in unconsolidated<br>
    &nbsp; subsidiaries and cumulative<br>
    &nbsp; effect of accounting change</font></td>
    <td WIDTH="111" VALIGN="bottom" align="right"><u><font FACE="Courier New"><strong>$ &nbsp;
    2,134</strong></font></u></td>
    <td WIDTH="109" VALIGN="bottom" COLSPAN="2" align="right"><u><font FACE="Courier New"><strong>$&nbsp;
    1,809</strong></font></u></td>
  </tr>
</TABLE>
<font FACE="Courier New">

<p ALIGN="CENTER">&nbsp;</p>

<p>April 30, 1999 segment operating profit information has been reclassified to conform to
current year presentation. For this reclassification, certain intercompany operating
profits and corporate expenses have been moved from the other category to the operating
segments. </p>

<p align="center"><strong>Page 7 of 15 (Form 10-Q)</strong></p>

<p align="center">&nbsp;</p>

<blockquote>
  <p><u>NOTE 5. Comprehensive Income</p>
  </u>
</blockquote>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Statement of Financial Accounting Standards No. 130,
&quot;Reporting Comprehensive Income&quot;, establishes standards for reporting and
display of comprehensive income and its components. Comprehensive income is net income,
plus certain other items that are recorded directly to shareholders&#146; equity,
bypassing net income. The only such item currently applicable to the Company is foreign
currency translation adjustments. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Comprehensive income was $1,200 million and $944
million for the quarters ended April 30, 2000 and 1999, respectively.</p>

<blockquote>
  <u><p ALIGN="JUSTIFY">NOTE 6. Acquisition of Additional Interest in Wal-Mart de Mexico</p>
</blockquote>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; On April 19, 2000, the Company purchased 271.3
million shares of stock in Wal-Mart de Mexico S.A. de C.V. (formerly Cifra S.A. de C.V.)
at a total cash cost of $587 million. This transaction increased the Company&#146;s
ownership percentage by approximately 6% and resulted in goodwill of $422 million, which
is being amortized over a 40-year life. In a separate transaction on April 19, 2000, the
Company also issued 10.8 million shares of its common stock to two private investors and
received proceeds of $582 million. These proceeds were used to replenish operating cash,
which was reduced as a result of our purchase of Wal-Mart de Mexico stock described above.</p>

<blockquote>
  <u><p ALIGN="JUSTIFY">NOTE 7. Accounting Changes</p>
</blockquote>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In fiscal 2000 the Company changed its method of
accounting for Sam&#146;s membership fee revenue both domestically and internationally.
Previously the Company had recognized membership fee revenues when received. Under the new
accounting method the Company recognizes membership fee revenues over the term of the
membership, which is 12 months. The Company recorded a non-cash charge of $198 million
(after reduction for income taxes of $119 million), or $.04 per share to reflect the
cumulative effect of the accounting change as of the beginning of fiscal 2000. The
comparative financial statements presented in this Form 10-Q reflect the effects of the
accounting change required by SAB 101.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; An additional requirement of SAB 101 is that layaway
transactions be recognized upon delivery of the merchandise to the customer rather than at
the time that the merchandise was placed on layaway. The Company offers a layaway program,
which allows customers to purchase certain items and make payments on these purchases over
a specific period. Until the first quarter of fiscal 2001, the Company recognized revenues
from these layaway transactions at the time that the merchandise was placed on layaway.
During the first quarter of fiscal 2001, the Company changed its accounting method for
layaway transactions so that the revenue from these transactions is not recognized until
the customer satisfies all payment obligations and takes possession of the merchandise.
The impact of this accounting change was not material, impacting earnings per share by
less than $0.01 in this first quarter of fiscal 2001. Since layaway transactions are a
small portion of the Company&#146;s revenue, the Company does not anticipate that this
accounting change will have a material impact on the results for the fiscal year. However,
due to the seasonality of the retail industry, the accounting change will result in a
shift of revenues and earnings between quarters, especially from the third quarter into
the fourth quarter of the fiscal year. Due to the de minimis impact of this accounting
change, prior fiscal year quarters have not been restated.</p>

<p ALIGN="center"><strong>Page 8 of 15 (Form 10-Q)</strong></p>

<p ALIGN="center">&nbsp;</p>
<b>

<p>Item 2. Management&#146;s Discussion and Analysis of Financial Condition</p>

<p ALIGN="CENTER">and Results of Operations</p>
</b><u>

<p ALIGN="JUSTIFY">Results of Operations</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company had a 23.8% sales increase for the
quarter ended April 30, 2000, when compared to the same quarter in fiscal 2000. The sales
increase was attributable to the Company&#146;s expansion program in the Wal-Mart stores,
Sam&#146;s Clubs and International segments, and a domestic comparative store sales
increase of 9.1%. This comparative store sales increase is comprised of a 9.6% increase
for the Wal-Mart stores and a 7.0% increase for the Sam&#146;s Clubs. The Company&#146;s
operating results for the first quarter ended April 30, 2000 increased $454 million due to
domestic growth, margin improvements and the ASDA acquisition. This is the result of the
timing of the Company&#146;s acquisition of the ASDA Group PLC. (ASDA), which was
completed during the third quarter of the Company&#146;s fiscal year ended January 31,
2000. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Domestic expansion activity during the first three
months of fiscal 2001 included the addition of seven new Wal-Mart stores, the conversion
of 24 Wal-Mart stores into Supercenters, and the addition of eight new Supercenters and
two new Sam&#146;s Clubs. International expansion during the first three months of fiscal
2001 included the addition of two units in Brazil, two units in China, two units in Mexico
and four units in the United Kingdom. Additionally, in March 2000, the Company announced
the sale of all three of the Company&#146;s Sam&#146;s Clubs in Argentina. The sale is
being made so that the Company can concentrate on expanding its Supercenter business
within Argentina. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At April 30, 2000, the Company had 1,784 Wal-Mart
stores, 753 Supercenters, and 465 Sam&#146;s Clubs in the United States. Internationally,
the Company operated units in Argentina(10), Brazil(16), Canada(166), Germany(95),
Korea(5), Mexico(460), Puerto Rico(15) and the United Kingdom (236) and under joint
venture agreements in China(8) . At April 30, 1999, the Company had 1,857 Wal-Mart stores,
591 Supercenters, and 453 Sam&#146;s Clubs in the United States. Internationally, the
Company operated units in Argentina(13), Brazil(14), Canada(154), Germany(95),
Mexico(423), and Puerto Rico(15), and under joint venture agreements in China(6) and Korea
(4).</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The International segment had a 118.7% sales
increase for the quarter ended April 30, 2000. This increase was due principally to the
acquisition of ASDA, which was completed in the third quarter of fiscal 2000. Disregarding
the ASDA results for the three months ended April 30, 2000, the International segment
sales increase was 17.5%. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; International sales accounted for 16.7% of total
Company sales in the first quarter of fiscal 2001, compared with 9.5% during the same
period in fiscal 2000. Sam&#146;s Clubs sales as a percentage of total Company sales fell
from 16.1% for the quarter ended April 30, 1999, to 14.1% for the quarter ended April 30,
2000, largely as a result of more rapid growth of sales in the International segment due
to the ASDA acquisition.</p>

<p ALIGN="center"><strong>Page 9 of 15 (Form 10-Q)</strong></p>

<p ALIGN="center">&nbsp;</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company&#146;s gross profit as a percentage of
sales increased from 21.53% in the first quarter of fiscal 2000 to 21.68% during the first
quarter of fiscal 2001. The improvements in gross profit occurred despite acceleration of
the Company&#146;s price rollback program and with significant growth in the lower margin
food business. As the Sam&#146;s Clubs segment comprises a lower percentage of
consolidated Company sales, the gross profit stated as a percentage of sales for the
Company as a whole, is positively affected since its contribution to gross profit is a
lower percentage than that of the Wal-Mart and International operating segments.
Additionally, markdowns and shrinkage for the first quarter of fiscal 2001 were down as a
percentage of sales when compared with the same period in fiscal 2000. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Operating, selling, general and administrative
expenses increased as a percentage of sales from 16.96% during the first quarter of fiscal
2000 to 17.02% for the first quarter of fiscal 2001. The increase in expenses was
primarily due to the change in percentages of the total volume generated by the Sam&#146;s
Club and International segments. The volume generated by the Sam&#146;s Club segment,
which has lower expenses as a percentage of sales, decreased as a proportion of the total
volume and the percentage of total volume generated by the International segment, which
has higher expenses as a percentage of sales, increased. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The International segment&#146;s operating profit
increased from $62 million in the first quarter of fiscal 2000 to $149 million for the
first quarter of fiscal 2001. As noted above, the increase for the first quarter of fiscal
2001 is primarily due to the inclusion of the operating results of ASDA. </p>
<u>

<p ALIGN="JUSTIFY">Liquidity and Capital Resources</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Cash flows provided by operating activities were
$881 million for the first quarter of fiscal 2001, compared with $1,546 million for the
comparable period in fiscal 2000. Operating cash flow was down for the three months ended
April 30, 2000, primarily due to a smaller increase of $69 million in accounts payable
compared with an increase in accounts payable of $1,005 million in fiscal 2000. This
decrease was slightly mitigated by the addition of $1,217 million in inventory compared
with an increase in inventory of $1,073 million in the comparable period in fiscal 2000. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Cash and cash equivalents decreased by 31%, or $607
million, when compared with the end of the same period in fiscal 2000. During the first
three months of fiscal 2001, the Company paid $193 million to repurchase its common stock,
issued common stock for proceeds of $582 million, paid dividends of $267 million, invested
$1,730 million in capital expenditures and paid $587 million for an additional interest in
Wal-Mart de Mexico SA de CV. </p>

<p ALIGN="center"><strong>Page 10 of 15 (Form 10-Q)</strong></p>

<p ALIGN="center">&nbsp;</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; On April 19, 2000, the Company sold to two private
offshore investors for cash, 10,810,837 shares of its common stock, $0.10 par value per
share (the &quot;Common Stock&quot;), for an aggregate price of $582 million. The Company
sold the shares of common stock to such purchasers in reliance on the exemption contained
in Section 4(2) of the Securities Act of 1933, as amended (the &quot;Securities
Act&quot;). The sales were not underwritten, and the Company paid no commissions or
discounts in connection with those sales. The Company used the proceeds of the sales to
replenish its operating cash, which was reduced as a result of its purchase earlier on
April 19, 2000, of a block of class V common shares of its subsidiary, Wal-Mart de Mexico,
S.A. de C.V., over the Mexican Stock Exchange.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At April 30, 2000, the Company had total assets of
$72,363 million compared with total assets of $70,349 million at January 31, 2000. Working
capital deficit at April 30, 2000, was $2,523 million, an increase of $1,076 million from
$1,447 million at January 31, 2000. The ratio of current assets to current liabilities was
0.9 to 1.0, at April 30, 2000 and January 31, 2000 and 1.2 to 1.0 at April 30, 1999.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In March 2000, the Company announced an increase in
its annual dividend by 20% to $.24 per share. This marks the twenty-eighth consecutive
yearly increase in dividends. </p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; At April 30, 2000, the Company had $500 million of
outstanding debt with imbedded call and put options. In June 2000, the call option was
exercised and all of the outstanding bonds were purchased from the bondholders. The bonds
were then remarketed. The remarketed bonds are due June 2018, bear interest at an initial
rate of 5.955% and will be subject to annual put/call options which can be exercised every
June 1. The interest rate will be reset as a fixed rate every June 1 through June 2017.
The Company received no proceeds from the resale of the bonds and will continue to pay the
interest on the bonds annually each June.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Company anticipates generating sufficient
operating cash flow to pay the increased dividend and to fund all capital expenditures.
The Company plans to refinance existing long-term debt as it matures and may desire to
obtain additional long-term financing for other purposes or for strategic reasons. The
Company anticipates no difficulty in obtaining long-term financing in view of an excellent
credit rating and favorable experiences in the debt market in the recent past. After
consideration of callable debt discussed above, the Company has the ability to sell up to
$3.0 billion of debt in the public markets under a shelf registration statement previously
filed with the United States Securities and Exchange Commission.</p>
<u>

<p ALIGN="JUSTIFY">Market Risk</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; Market risks relating to the Company&#146;s
operations result primarily from changes in interest rates and changes in foreign exchange
rates. The Company&#146;s market risks at April 30, 2000 are similar to those disclosed in
the Company&#146;s Form 10-K for the year ended January 31, 2000, however, the Company has
increased the notional amount of cross currency swaps by $1 billion during the first
quarter of fiscal 2001. The information concerning market risk under the sub-caption
&quot;Market Risk&quot; of the caption &quot;Management&#146;s Discussion and
Analysis&quot; on pages 21 through 24 of the Annual Report to Shareholders for the year
ended January 31, 2000, is hereby incorporated by reference.</p>

<p ALIGN="center"><strong>Page 11 of 15 (Form 10-Q)</strong></p>

<p ALIGN="center">&nbsp;</p>
<u>

<p ALIGN="JUSTIFY">Accounting Pronouncements</p>
</u>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In June 1998, the Financial Accounting Standards
Board (FASB) issued Statement No. 133, &quot;Accounting for Derivative Instruments and
Hedging Activities.&quot; The Statement will be effective for the Company beginning
February 1, 2001. The new Statement requires all derivatives to be recorded on the balance
sheet at fair value and establishes accounting treatment for three types of hedges: hedges
of changes in the fair value of assets, liabilities, or firm commitments; hedges of the
variable cash flows of forecasted transactions; and hedges of foreign currency exposures
of net investments in foreign operations. The Company is analyzing the implementation
requirements and currently does not anticipate there will be a material impact on the
results of operations or financial position after the adoption of Statement No. 133.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; In March 2000, the Financial Accounting Standards
Board (&quot;FASB&quot;) issued FASB Interpretation No. 44 (&quot;FIN 44&quot;),
Accounting of Certain Transactions involving Stock Compensation an interpretation of APB
Opinion No. 25. FIN 44 clarifies the application of Opinion 25 for (a) the definition of
employee for purposes of applying Opinion 25, (b) the criteria for determining whether a
plan qualifies as a noncompensatory plan, (c) the accounting consequence of various
modifications to the terms of a previously fixed stock option or award, and (d) the
accounting for an exchange of stock compensation awards in a business combination.</p>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; FIN 44 is effective July 1, 2000, but certain
conclusions cover specific events that occur after either December 15, 1998, or January
12, 2000. Management believes that the impact of FIN 44 will not have a material effect on
the financial position or results of operations of the Company.</p>

<p ALIGN="JUSTIFY">&nbsp;</p>
<u>

<p ALIGN="JUSTIFY">Year 2000 Issue</p>
</u></font><font FACE="Courier">

<p ALIGN="JUSTIFY"></font><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company did not
experience any significant malfunctions or errors in its operating or business systems
when the date changed from 1999 to 2000. Based on operations since January 1, 2000, the
Company does not expect any significant impact on its ongoing business as a result of the
&quot;Year 2000 issue.&quot; However, it is possible that the full impact of the date
change, which was of concern due to computer programs that use two digits instead of four
digits to define years, has not been fully recognized. For example, it is possible that
Year 2000 or similar issues such as leap year-related problems may occur with billing,
payroll, or financial closings at month, quarter, or year end. The Company did not
experience any such problems with the financial closing for the first quarter of fiscal
2001 and believes that the possibility of any such problems occurring in the future is
unlikely and that should they occur, they would be minor and correctable. In addition, the
Company could still be negatively affected if its suppliers are adversely affected by the
Year 2000 or similar issues. The Company currently is not aware of any significant Year
2000 or similar problems that have arisen for its suppliers.</font></p>

<p ALIGN="center"><font FACE="Courier New"><strong>Page 12 of 15 (Form 10-Q)</strong></font></p>

<p ALIGN="center">&nbsp;</p>
<b><font FACE="Courier New">

<p ALIGN="CENTER">PART II. OTHER INFORMATION</p>
</font><u><font FACE="Courier">

<p ALIGN="JUSTIFY"></font><font FACE="Courier New">ITEM 1.</u></b> <u><b>LEGAL PROCEEDINGS</font></p>
</b></u>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company is not a party
to any material pending legal proceedings. Neither the Company nor any of its properties
is subject to any material pending legal proceeding, other than routine litigation
incidental to the Company&#146;s business.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The Company recently opened
a Supercenter in Honesdale, Pennsylvania. In February of 1999, the Company settled claims
made by the Pennsylvania Department of Environmental Protection (PDEP) that a
subcontractor&#146;s acts and omissions relating to the construction of the Supercenter
led to excess erosion and sedimentation of a nearby creek. In the settlement, Wal-Mart
agreed to pay a fine of $25,000 and to perform a $75,000 community environmental project
in the Honesdale area. The Company is negotiating settlement of a claim by the United
States Army Corps of Engineers that the construction resulted in the filling of
approximately 0.76 acres in excess of the permitted fill area of waters and wetlands at
the site. The proposed settlement with the Corps will require Wal-Mart to pay $200,000 to
a non-profit corporation for the purchase of local wetlands conservation areas and
easements. The Company has been reimbursed for these amounts by the contractor on the
project.</font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; The United States
Environmental Protection Agency (EPA) is threatening to bring suit against the Company and
five of its contractors over alleged violations of a 1992 storm water permit issued with
respect to various Wal-Mart development sites in Texas, New Mexico and Oklahoma. The EPA
has presented the Company with penalty calculations of $5.6 million. </font></p>

<p ALIGN="JUSTIFY"><font FACE="Courier New">&nbsp;&nbsp;&nbsp; During the first quarter of
fiscal 2001, the State of Connecticut filed suit against the Company for various
violations of state environmental laws alleging the Company failed to adequately permit
and or maintain records relating to storm water management practices at 12 stores. The
Company will vigorously defend against these allegations</font><font SIZE="2"
face="Courier New">.</font><font SIZE="2"></p>
</font><b>

<p><font FACE="Courier New">Item 2. Changes in Securities and Use of Proceeds.</p>

<p ALIGN="JUSTIFY"></b>&nbsp;&nbsp;&nbsp; As noted in &quot;Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operation&#151;Liquidity and Capital
Resources&quot;, on April 19, 2000, the Company sold 10,810,837 shares of its Common
Stock. The shares were sold to two private offshore investors for cash and for an
aggregate price of $582,450,449. The shares were sold to those investors in reliance on
the exemption from the registration requirements of the Securities Act contained in
Section 4(2) of the Securities Act. The offer and sale of the shares was made in
negotiated transactions that did not involve any public solicitation or advertising of the
offer of the shares. The Company offered and sold the shares only to sophisticated
investors who could evaluate the merits and risks of an investment in shares of the Common
Stock. The Company put into place the usual restrictive legends on the share certificates
and those other precautions to prevent the resale or other disposition of the shares
except pursuant to an effective registration statement or an available exemption from the
registration requirements of the Securities Act. The offer and sale of those shares was
not underwritten, and no underwriting discounts or commissions were paid by the Company in
connection with the offer and sale of those shares.</p>
<b>

<p align="center">Page 13 of 15 (Form 10-Q)</p>

<p align="center">&nbsp;</p>

<p>Item 5. Other Information</p>
</b>

<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp; The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements made by or on behalf of the Company.
Certain statements contained in Management&#146;s Discussion and Analysis and in other
Company filings are forward-looking statements. These statements discuss, among other
things, expected growth, future revenues, future cash flows and future performance. The
forward-looking statements are subject to risks and uncertainties including but not
limited to the cost of goods, competitive pressures, inflation, consumer debt levels,
currency exchange fluctuations, trade restrictions, changes in tariff and freight rates,
Year 2000 issues, interest rate fluctuations and other capital market conditions, and
other risks indicated in the Company&#146;s filings with the United States Securities and
Exchange Commission. Actual results may materially differ from anticipated results
described in these statements.</p>
<b>

<p>Item 6. Exhibits and Reports on Form 8-K</p>

<blockquote>
  <p></b>(a) The following document is filed as an exhibit to this<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 10-Q:<b></p>
  <blockquote>
    <blockquote>
      <p></b>Exhibit 12 &#150; Statement Re Computation of Fixed<br>
      Charges<b></p>
      </b>
    </blockquote>
  </blockquote>
</blockquote>

<blockquote>
  <blockquote>
    <blockquote>
      <p>Exhibit 27 - Financial Data Schedule</p>
    </blockquote>
  </blockquote>
</blockquote>

<blockquote>
  <p>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reports on Form 8-K. </p>
  <blockquote>
    <blockquote>
      <p ALIGN="JUSTIFY">Report on Form 8-K, dated February 3, 2000, with respect to the
      Company&#146;s February 3, 2000 press release announcing its approximate net sales for the
      fiscal year ended January 31, 2000 and the four-week period ended January 28, 2000. The
      press release also discussed a change in accounting principle made by the Company in the
      last fiscal year in response to the issuance of a new Securities and Exchange Commission
      Staff Accounting Bulletin regarding revenue recognition.</p>
      <blockquote>
        <p align="center"><strong>Page 14 of 15 (Form 10-Q)</strong></p>
        <p ALIGN="CENTER">&nbsp;</p>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<b>

<p ALIGN="CENTER">SIGNATURES</p>

<p ALIGN="CENTER">&nbsp;</p>
</b>

<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</p>

<p>&nbsp;</p>

<table border="0" width="100%">
  <tr>
    <td width="33%"></td>
    <td width="34%">WAL-MART STORES, INC.</td>
  </tr>
  <tr>
    <td width="67%" colspan="2">&nbsp;<p>&nbsp;</td>
  </tr>
  <tr>
    <td width="33%" valign="top">Date: May 7, 2000</td>
    <td width="34%"><u>/s/ H. Lee Scott
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <br>
    </u>&nbsp;&nbsp;&nbsp; H. Lee Scott<br>
    &nbsp;&nbsp;&nbsp; President and<br>
    &nbsp;&nbsp;&nbsp; Chief Executive Officer</td>
  </tr>
  <tr>
    <td width="67%" colspan="2">&nbsp;<p>&nbsp;</td>
  </tr>
  <tr>
    <td width="33%" valign="top">Date: May 7, 2000</td>
    <td width="34%"><u>/s/ Thomas M. Schoewe
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
    </u>&nbsp;&nbsp;&nbsp; Thomas M. Schoewe<br>
    &nbsp;&nbsp;&nbsp; Executive Vice President<br>
    &nbsp;&nbsp;&nbsp; and Chief Financial Officer</td>
  </tr>
</TABLE>
</font><font FACE="Courier">

<p>&nbsp;</p>
</font>

<p align="center"><strong><font FACE="Courier">Page 15 of 15 (Form 10-Q)</font></strong></p>
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<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>2
<FILENAME>0002.htm
<TEXT>

<HTML>

<head>
</head>

<body>

<table CELLSPACING="0" BORDER="0" CELLPADDING="4">
  <tr>
    <td VALIGN="TOP" COLSPAN="8"><font FACE="Courier New" SIZE="2"><b><p ALIGN="CENTER">Exhibit
    12<br>
    Statement re computation of ratios</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"></td>
    <td WIDTH="19%" VALIGN="TOP" COLSPAN="2"><font FACE="Courier New" SIZE="2"><p
    ALIGN="CENTER">Three Months<br>
    Ended<br>
    April 30,</font></td>
    <td WIDTH="47%" VALIGN="bottom" COLSPAN="5"><font FACE="Courier New" SIZE="2"><p
    ALIGN="CENTER">Fiscal Years Ended</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td WIDTH="10%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
    <td WIDTH="10%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1998</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1997</u></font></td>
    <td WIDTH="9%" VALIGN="TOP" align="center"><font FACE="Courier New" SIZE="2"><u>1996</u></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Income before income taxes</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">2,134</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,809**</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">9,083</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">7,323</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,719</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,877</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,359</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capitalized interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(14)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(10)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(57)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(41)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(33)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(44)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(50)</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Minority interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(23)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(33)</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(170)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(153)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(78)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(27)</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">(13)</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Adjusted profit before tax*</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">2,097</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,766</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">8,856</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">7,129</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,608</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,806</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">4,296</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Fixed charges</font></td>
    <td WIDTH="65%" VALIGN="TOP" align="right" colspan="7"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Debt interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">263</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">127</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">756</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">529</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">555</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">629</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">692</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capital lease interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">67</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">64</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">266</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">268</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">229</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">216</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">196</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Capitalized interest</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">14</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">10</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">57</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">41</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">33</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">44</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">50</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Interest component of rent</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">125</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">143</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">458</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">523</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">477</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">449</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">425</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Total fixed expense</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">469</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">344</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,537</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,361</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,294</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,338</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">1,363</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP"><font FACE="Courier New" SIZE="2">Profit before taxes and
    fixed expenses</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">2,566</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">2,110</font></td>
    <td WIDTH="10%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">10,393</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">8,490</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">6,902</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">6,144</font></td>
    <td WIDTH="9%" VALIGN="TOP" align="right"><font FACE="Courier New" SIZE="2">5,659</font></td>
  </tr>
  <tr>
    <td WIDTH="98%" VALIGN="TOP" colspan="8"></td>
  </tr>
  <tr>
    <td WIDTH="33%" VALIGN="TOP" HEIGHT="19"><font FACE="Courier New" SIZE="2"><b>Fixed charge
    coverage</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>5.47</b></font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.13</b></font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.76</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>6.24</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>5.33</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>4.59</b></font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="19" align="right"><font FACE="Courier New" SIZE="2"><b>4.15</b></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p>*&nbsp; Does not include the cumulative effect of accounting change recorded by the<br>
&nbsp;&nbsp; company in Fiscal 2000</p>

<p>** Restated to reflect the first quarter 2000 impact of the accounting change<br>
&nbsp;&nbsp; recorded by the Company in fiscal 2000.</p>
</font>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>3
<FILENAME>0003.txt
<TEXT>

<TABLE> <S> <C>

<ARTICLE> 5

<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JAN-31-2001
<PERIOD-END>                               APR-30-2000
<CASH>                                           1,360
<SECURITIES>                                         0
<RECEIVABLES>                                    1,265
<ALLOWANCES>                                         0
<INVENTORY>                                     20,971
<CURRENT-ASSETS>                                25,101
<PP&E>                                          42,464
<DEPRECIATION>                                   8,563
<TOTAL-ASSETS>                                  72,363
<CURRENT-LIABILITIES>                           27,624
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           446
<OTHER-SE>                                      26,695
<TOTAL-LIABILITY-AND-EQUITY>                    72,363
<SALES>                                         42,985
<TOTAL-REVENUES>                                43,447
<CGS>                                           33,665
<TOTAL-COSTS>                                   41,313
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 330
<INCOME-PRETAX>                                  2,134
<INCOME-TAX>                                       785
<INCOME-CONTINUING>                              1,326
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,326
<EPS-BASIC>                                        .30
<EPS-DILUTED>                                      .30


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