Wal-Mart Shares Jump on Spending Plan

Updated from 11:25 a.m. EDT

Wal-Mart's(WMT Quote) struggling shares got a boost Friday as the world's largest retailer announced plans to cut capital spending and slow its store-opening pace.

The Bentonville, Ark., behemoth also said it would buy back $15 billion worth of stock with money freed up by the spending slowdown. Shares, which have been stuck in the mid-40s for much of the past year, were up $1.79, or 3.8%, to $49.39 in recent trading.

The steps come as Wal-Mart is facing stagnant growth amid tepid sales. The company also has also been embroiled in a very public legal battle with former marketing executive Julie Roehm, and it continues to face complaints about underpaid workers and overpaid corporate officers.

"We are committed to improving return on investment, while continuing to grow in the United States," CEO Lee Scott, who has been under fire for the stock's poor performance in recent years, said in statement. "Today's announcement of this strategy and the share repurchase program underscores Wal-Mart's commitment to returning value to our shareholders."

The company said it expects to add 190 to 200 new U.S. supercenters during this fiscal year and about 170 supercenters each year for the next three fiscal years. Wal-Mart had earlier targeted the opening of between 265 and 270 U.S. supercenters this year.

Some 80 of the supercenters originally scheduled to open in January 2008 now will open in early fiscal year 2009.

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