WAL-MART STORES, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2006

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended October 31, 2006.

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from __________ to __________.

Commission file number 1-6991

WAL-MART STORES, INC.

(Exact name of registrant as specified in its charter)

Delaware	71-0415188
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
702 S.W. 8th Street Bentonville, Arkansas	72716
(Address of principal executive offices)	(Zip Code)

(479) 273-4000

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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. Yesx No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (See definition of “accelerated filer and large accelerated filer” as defined in Rule 12b-2 of the Exchange Act). Check One:

Large Accelerated Filer x Accelerated Filer ¨ Non-Accelerated Filer ¨

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes¨ Nox

Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common Stock, $.10 Par Value - 4,168,025,494 shares as of November 24, 2006.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

WAL-MART STORES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Amounts in millions except per share data)

	Three Months Ended October 31,						Nine Months Ended October 31,
		2006			2005			2006			2005
Revenues:
Net sales	$	83,543		$	74,596		$	246,902		$	220,527
Other income, net		924			801			2,670			2,322
		84,467			75,397			249,572			222,849

Costs and expenses:
Cost of sales		63,765			57,325			188,587			169,267
Operating, selling, general and administrative expenses		16,237			13,974			46,920			40,762
Operating income		4,465			4,098			14,065			12,820

Interest:
Debt		434			347			1,188			847
Capital leases		55			60			192			173
Interest income		(65	)		(57	)		(196	)		(165	)
Interest, net		424			350			1,184			855

Income from continuing operations before income taxes and minority interest		4,041			3,748			12,881			11,965
Provision for income taxes		1,363			1,253			4,388			3,969
Income from continuing operations before minority interest		2,678			2,495			8,493			7,996
Minority interest		(84	)		(73	)		(254	)		(209	)
Income from continuing operations		2,594			2,422			8,239			7,787
Income (loss) from discontinued operations, net of tax		53			(48	)		(894	)		(147	)
Net income	$	2,647		$	2,374		$	7,345		$	7,640

Basic net income per common share:
Income per share from continuing operations	$	0.62		$	0.58		$	1.98		$	1.86
Income (loss) per share from discontinued operations		0.01			(0.01	)		(0.22	)		(0.04	)
Basic net income per common share	$	0.63		$	0.57		$	1.76		$	1.82
Diluted net income per common share:
Income per share from continuing operations	$	0.62		$	0.58		$	1.97		$	1.86
Income (loss) per share from discontinued operations		0.01			(0.01	)		(0.21	)		(0.04	)
Diluted net income per common share	$	0.63		$	0.57		$	1.76		$	1.82
Weighted-average number of common shares:
Basic		4,169			4,165