Wal-Mart unveiled a $20 billion share buyback plan and forecast U.S. online sales will increase about 40 percent in the fiscal year ending January 2019. Fred Katayama reports.
Wal-Mart plans to buy back $20 billion of its shares over the next few years. And it sees its U.S. online sales soaring 40 percent by January 2019. And it targets overall net sales rising by at least three percent. Investors must have liked what they heard at Wal-Mart's annual meeting in Bentonville, Arkansas. Its stock jumped on Tuesday. Gullane Capital Partners managing partner Trip Miller: (SOUNDBITE) TRIP MILLER, MANAGING PARTNER, GULLANE CAPITAL PARTNERS (ENGLISH) SAYING: "It's obviously in a retail space that has been bombarded with many different challenges, you know, specifically coming from Amazon. A lot of margin compression there. I think it's a signal, on top of what they have done historically with their buybacks that they still feel that their business is very heavily undervalued and the stock is trading at a very compelling price." Wal-Mart is locked in a battle for market share with ecommerce giant Amazon. In August, Wal-Mart said its online sales in the U.S. were up 60 percent in the latest quarter. But it warned that current-quarter profit could miss Wall Street estimates because of price-cutting and heavy spending on e-commerce.