Wal-Mart (NYSE: WMT) on Tuesday reiterated its earnings outlook for the current fiscal year and announced plans to add 1,000 online grocery pickup locations at its U.S. stores in fiscal 2019.
Wal-Mart also unveiled a $20-billion share repurchase program to replace its existing plan. The company says the new authorization will be used over a two-year period.
The big-box retailer explained it will continue to focus on remodeling existing stores and incorporating “digital experiences” in place of building new locations.
Ahead of its annual investor day in Bentonville, Arkansas, Wal-Mart said it expects its U.S. e-commerce business to grow sales by roughly 40% in fiscal 2019. Online transactions surged 60% during the second quarter of this year, the retailer declared in August.
The company still expects adjusted earnings per share for the fiscal year 2018 to fall between $4.30 and $4.40.
For fiscal 2019, Wal-Mart said it expects earnings to increase about 5% year over year. Net sales for fiscal 2019 are expected to grow close to 3%, driven by same-store and e-commerce sales growth, the company added.
In fiscal 2019, across the U.S., Walmart will open fewer than 15 Supercenters and fewer than 10 of its Neighborhood Markets.
For fiscal years 2018 and 2019 combined, Wal-Mart is calling for capital expenditures to be about $11 billion, with e-commerce investments going toward enhancing the retailer’s supply chain. Wal-Mart’s international business will also invest more in fulfillment capabilities.
Shares in Wal-Mart galloped $3.53, or 4.4%, to $84.06