Walmart Announces $11.8 To $12.8 Billion FY2015 Global Capital Expenditure Plan; Company Remains Focused On Comp Sales Growth, International Returns, Leverage Initiatives And Capital Discipline
“We are delivering value to Walmart through revenue growth and engaging millions more customers,” said Ashe. “We made significant progress globally during the past year by driving relevant offers and experiences, building a broader assortment and innovating through Big Data, social and mobile capabilities. Looking ahead, we will continue to invest significantly in our global technology platform, next generation fulfillment network and the best talent.”
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better -- anytime and anywhere -- in retail stores, online, and through their mobile devices. Each week, more than 245 million customers and members visit our more than 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.
Forward-looking statementThis release contains statements that Walmart believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. Except as noted below, these forward-looking statements are identified by use of the words or phrases “accelerates,” “are projected,” “capital plan,” “decreased,” “expect,” “expects,” “forecast,” “forecasts,” “guidance,” “increased,” “increases,” “is projected,” “is projecting,” “is slated,” “maintains,” “plan,” “plans,” “priorities,” “projected,” “reduces,” “reduction,” “will accelerate,” “will add,” “will build,” “will continue,” “will expand,” “will generate,” “will grow,” “will increase,” “will occur,” and “will open” or a variation of the foregoing words or phrases in these statements, in the descriptions of certain assumptions on which expectations, forecasts or projections discussed in this release are based. The forward-looking statements discuss, among other things: management’s revised expectations for the capital expenditures (also referred to as “capital investments,” “capital spending,” the “capital plan” and the “capital budget”) in fiscal year 2014 (which are revised from the company’s previously announced projections for capital expenditures for fiscal year 2014) and fiscal year 2015 for the total company, for each of its operating segments (including projected differences from previously announced projections for the company and the company’s Walmart U.S. and Walmart International operating segments) and for corporate and other purposes; management’s projections for the growth in and addition of retail square footage for the total company and each of the company’s operating segments (including projected differences from previously announced projections for the company and the company’s Walmart U.S., Walmart International and Sam’s Club operating segments) in fiscal year 2014 (which are revised from the company’s previously announced projections for square footage growth for fiscal year 2014) and fiscal year 2015; management’s projections for unit growth in the company’s Walmart U.S. and Sam’s Club operating segments in the United States in fiscal year 2014 (which are revised from the company’s previously announced projections for unit growth in the United States for fiscal year 2014) and fiscal year 2015, including for larger and smaller formats within the Walmart U.S. operating segment; management’s projections for the company’s net sales in fiscal year 2014 and fiscal year 2015, including the percentage and amount of growth in net sales compared to fiscal year 2014; management’s expectations that the company’s operating income will grow at the same rate, or faster than, the company’s sales; management’s expectation that the fiscal year 2014 and 2015 capital plans will include increased investments in technology and e-commerce; projected increases in the company’s technology spend from fiscal year 2009 through fiscal year 2014; management’s expectations that the company will grow through new stores and e-commerce, while expanding its logistics and fulfillment network in critical markets; management’s expectation that the number of supercenters operated by the Walmart U.S. operating segment will continue to increase and the number of discount stores operated by the Walmart U.S. operating segment will decline; the number of new small format stores to be opened by the Walmart U.S. operating segment in fiscal year 2015; management’s expectation that the Walmart U.S. operating segment will accelerate growth of the Neighborhood Market format and will continue to build and leverage its supercenter format; management’s expectation for the number of new supercenters, including relocations and expansions, that the Walmart U.S. operating segment will open in fiscal year 2015; management’s expectation for the company’s Sam’s Club operating segment to open a certain number of new clubs and to continue to increase the openings of new clubs; the number of clubs, including relocations and expansions, the company’s Sam’s Club operating segment will open in fiscal year 2015; the number of remodels the company’s Sam’s Club operating segment will complete in fiscal year 2015; management’s expectations that the company’s Walmart International operating segment will close a certain number of underperforming stores in Brazil and China and that a certain number of those closures will occur in the fourth quarter of fiscal year 2014; management’s expectation that the company’s operating segments will continue to invest significantly in the company’s global technology platform, next generation fulfillment network and the best talent in the e-commerce area; and the various factors and circumstances that will drive or influence certain of such expectations, forecasts and projections. Also included in the forward-looking statements in this release are certain statements regarding the company’s priorities and focus on certain matters, including its priorities of growth, including comparable store and club sales growth, leverage, including leverage initiatives, and returns, including returns at the company’s Walmart International operating segment and free cash flow. The forward-looking statements in this release also include the information contained in the charts entitled “Capital Expenditure Detail,” “Net Retail Square Footage,” and “Total U.S. Unit Growth,” which information relates to capital expenditures to be made, square footage growth and units to be added in the United States during each of fiscal year 2014 (which information is revised from previously announced projections in regard to such measures for fiscal year 2014) and fiscal year 2015. These forward-looking statements and the information in the charts described above are subject to risks, uncertainties and other factors, domestically and internationally, including general economic conditions, including the effects of the current economic situation, competitive pressures, geopolitical conditions and events, inflation, deflation, consumer confidence, credit availability, spending patterns and debt levels, currency exchange fluctuations, unemployment and partial employment rates, personal income and other tax rates, trade restrictions, availability of attractive investment opportunities in non-United States markets, availability of appropriate locations for new or relocated units, local real estate and other laws, ordinances, legal restrictions and initiatives that may prevent the company from building or relocating, or that impose limitations on the company’s ability to build or relocate, stores in certain locations or to close underperforming stores in certain countries, availability of persons with the necessary skills and abilities necessary to meet the company’s needs for managing and staffing its new stores and conducting its operations, including in the e-commerce area, availability of necessary utilities, weather conditions, availability of skilled labor, labor, material and other construction costs, insurance costs, operating expenses, fluctuations in market rates of interest and other capital market conditions, and other factors and risks. The company discusses certain of these matters more fully in its Annual Report on Form 10-K for its fiscal year ended January 31, 2013, and this release should be read in conjunction with that Annual Report on Form 10-K and together with all of the company’s other filings, including its Quarterly Reports on Form 10-Q and Current Reports on Form 8- K, made with the SEC through the date of this release. You are urged to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, the actual implementation of the company’s operating and other plans by one or more of its operating segments, its actual capital expenditures, unit growth, and square footage growth in one or more of its operating segments, the formats of the units built, the conversion of discount stores to supercenters by the Walmart U.S. segment, the focus of the company’s expansion and sales and operating income growth may differ materially from the expected results and the plans described in these forward-looking statements. The forward-looking statements included in this release are made only as of the date of this release, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
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