Walmart Culture

Wal-Mart’s Culture

The corporate culture of Wal-Mart is one of the biggest contributing factors that make it one of the world's most admired companies. When Sam Walton founded the company, he instilled in his people and his business a belief system that is still very much in place today.

From the three basic beliefs to the sundown rule, we respect our customers, Associates and suppliers and strive to treat them as we ourselves want to be treated. In building and nurturing these relationships, as well as serving the communities where we live, we've helped build a better business-one committed to excellence.

To our shareholders, associates and customers:

Last year, Wal-Mart Stores, Inc. delivered both record sales and earnings from continuing operations. We also stepped out and took on some of the toughest challenges facing the communities we serve. But we did not achieve these things while doing business as usual.We did them during a period of perhaps the most rapid and profound change in our Company’s history. With our transformation plan, we are committed to staying “Out in Front” of the changes around us.

This success is a tribute toWal-Mart associates around the world, and the culture they live and carry forward every day. At Wal-Mart, we save people money so they can live better. We are proud of that purpose, and I am proud of our associates, our Company, and the results we achieved together this past year.

Record Sales

When it comes to the fifi scal year’s fifi nancial results,Wal-Mart again delivered solid performance.We had record net sales of $345 billion, an increase of 11.7 percent over fifi scal year 2006. Our net income from continuing operations rose 6.7 percent over last year to a record $12.2 billion. Earnings per share from continuing operations were $2.92.

I am also very pleased with our results inWal-Mart’s International division, headed by Mike Duke. Led byMexico and increasing momentum at Asda in the United Kingdom, international sales increased more than 30 percent to $77 billion for the year. Doug McMillon and his Sam’s Club team also turned in a solid performance, with sales growing 4.5 percent for the year. For the sixth quarter in a row, Sam’s Club grew operating income faster than sales.

Of course, there were a couple of disappointments. In particular, total U.S. comparable store sales were 2.0 percent last year, which was below our plan. However, theWal-Mart Stores division, led by Eduardo Castro-Wright, continued its trend of improving labor productivity and inventory management. The U.S. team also delivered an increase in return on investment. Considering our goal was only to have flfl attened the downward trend by the end of the fifiscal year, an increase in ROI is a great accomplishment for Wal-Mart U.S.

Unlocking the Value

At Wal-Mart, our growth has been guided by a strategy of focusing our fifinancial and human resources in areas where we can unlock the most value. In our International division, we call this approach “major in the majors.”Our