Wal-Mart is continuing to realize that making what they have better at this point returns more that just throwing up stores everywhere.
Spending on new stores will decline for a second straight year to $13 billion to $14 billion for the 12 months through January, down from an October projection of $13.5 billion to $15.2 billion, Wal-Mart said today. The company spent $14.9 billion in the previous fiscal year.
Let’s not forget the original number for 2007 was $17 billion.
Plans are to add 170 U.S. supercenters this fiscal year and 140 in next 12-month period starting in February after opening 191 and 281 in the previous two fiscal years respectively.
Square footage of stores is expected to increase by 5% to 6% this fiscal year, slowing from 7.7% growth last year.
Wal-Mart is in the mist of a $15 billion share repurchase that, ought to be increases as this spending is decreased. The store remodels are excellent, the “Save More Live Better” campaign has been a success as predicted and customer are flocking to the stores as dollars are pinched.
The only thing really left to do to increase the rewards to shareholders in an increase in the share repurchase. The money is there, so is the financial flexibility. Why not?
As of 4/30 there was $7.1 billion left on the $15 billion plan announced in May 2007. It ought to be finished or real close to being finished this year based on results so far. Why not announce another $10 to $15 billion plan?
Disclosure (“none” means no position):Long WMT
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