Walmart claims to be on track to achieve its five-year commitment of reducing operating expenses as a percentage of sales by 100 basis points from fiscal years 2013 through 2017. The retailer plans to lower its fiscal 2014 capital plan from fiscal 2013 while growing a a balance of its smaller format stores with supercenters. Walmart reaffirmed its most recent cap-ex guidance of $12.6 to $13.5 billion for the current year and $12.0 to $13.0 billion next year.
Walmart International’s capital plan is relatively flat at $4.5 to $5.0 billion, delivering growth of 20 to 22 million square feet next fiscal year.
The company provided guidance of 5% to 7% percent sales growth or by $23.0 to $33.0 billion next year (again fiscal 2014) with 3% to 4% retail square footage growth for next fiscal year, but it sees operating expense growth less than the rate of sales growth. Walmart is expected to post revenues of $471.9 billion for the current year, so that implies sales in a range of $501 billion to $511 billion. Thomson Reuters has estimates of $495.4 billion.
Walmart shares are up almost 2% at $75.50 but the stock hit a new 52-week high of $76.81 today. The prior 52-week trading range was $54.48 to $75.55 and Thomson Reuters has a consensus price target of $77.53 for one year out.
JON C. OGG
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