Wal-Mart Stores Inc. (WMT) said it intends to reduce capital
expenditures in fiscal 2014, compared with the current fiscal year,
even as the retail giant continues its expansion plans.
The company also said it expects sales growth of 5% to 7% in
fiscal 2014, increasing net sales by $23 billion to $33
billion.
Wal-Mart projects capital expenditures ranging from $12 billion
to $13 billion for fiscal 2014, down from the current year's
projections of $12.6 billion to $13.5 billion in expenditures. The
capital expenditures will include growth for existing and new
stores, investments in order to reduce costs, and an expansion of
online sales.
"We will continue to expand our physical presence through a
variety of formats across our markets, while also investing in
initiatives to enhance our operational excellence and further new
e-commerce opportunities," said Chief Executive Mike Duke.
The company expects to add between 36 million and 40 million
square feet of retail space next year, roughly flat from the fiscal
2013 forecast of adding 36 million to 39 million retail square
feet.
The retail giant's U.S. operations intend to reduce capital
spending compared with fiscal 2013. The segment plans to add around
125 supercenters and accelerate the rollout of its smaller-format
stores, with a goal of adding 95 to 115 stores next year.
Sam's Club plans to add more locations and remodel next year
with the $1 billion it is allocated.
Wal-Mart International's capital plan will be roughly flat from
fiscal 2013, as it adds 20 million to 22 million square feet.
The company said it is on track to reduce operating expenses by
1% over five years, beginning this year.
Shares rose 1.2% in recent trading to $75.37. The stock is up
26% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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