Wal-Mart ends spending spree to delight of analysts
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Updated: April 17, 2007
The announcement sent its shares to their biggest gain in a year.
Analysts say Wal-Mart expanded too fast as sales growth slowed. Last month, sales at U.S. stores open at least a year grew 1.3 percent, compared with a 6.7 percent gain by Target Corp.
Chief Financial Officer Tom Schoewe, who called recent results "disappointing," said the company wants higher returns from its investments.
One analyst noted that slowing spending had been discussed and that this was the right move for the times.
Shares of Wal-Mart rose $1.77, or 3.6 percent, to $51.14 at 11:33 a.m. in New York Stock Exchange composite trading after rising as high as $52.15. They have risen 9.2 percent this year.
Wal-Mart had 6,689 stores worldwide as of Oct. 1, including 3,944 locations in the U.S.
(Copyright 2006 Newsroom Solutions, LLC)
