Wal-Mart lowers capital spending outlook

US: Wal-Mart lowers capital spending outlook

By just-style.com | 18 June 2008

Retail giant Wal-Mart has lowered its capital spending outlook for the current fiscal year as the company continues its strategy of targeting more efficient growth.

For the year to 31 January 2009, the US company now expects to spend US$13-14bn, a reduction on its earlier forecasts.

"This range, based on our latest projections, is lower than the $13.5-15.2bn range we provided last October, and it reflects Wal-Mart's ability to grow more efficiently with reduced capital expenditures," Wal-Mart CFO Tom Schoewe told the William Blair Growth Stock Conference in Chicago.

"We first announced our capital efficiency model and reduction in capital expenditures in June 2007. We continue to be focused in the United States on moderating supercenter growth."

The company is set to report US comparable store sales for June, also updating its earnings per share guidance for the second quarter, on 10 July.

Sectors: Finance, Retail

Companies: Wal-Mart