NEW YORK: US retail behemoth Walmart yesterday announced a $15bn share repurchase programme, citing the continued benefits of the company’s strong cash flow.
Wal-Mart Stores said the new share repurchase plan replaces a previous $15bn share repurchase plan announced in 2011.
Walmart said the 2011 share repurchase authorisation has approximately $712m remaining. A company news release did not say whether Walmart would complete 2011 programme before moving to the new programme.
“Our strong cash flow enabled the company to invest in growth and repurchase over $14bn of our stock during the last two years,” said Charles Holley, Walmart executive vice president and chief financial officer.
“We’re pleased to continue our share repurchase programme with this new $15bn authorisation.”
Walmart announced the share repurchase plan at a lively annual meeting near its Arkansas headquarters that featured appearances by celebrities like Kelly Clarkson and John Legend.
The announcement comes on the heels of a disappointing quarterly earnings report in May. The company’s US comparable store sales declined due to a delay in income tax refund checks, tying up consumer spending, while international operations were strained by high expenses.
Walmart has 2.2 million employees and 10,800 stores in 27 countries. The company reported more than $466bn in revenues in 2011, a sum that is greater than the gross domestic product of most countries.
AFP
