Wal-Mart board approves new $15 billion stock buyback program

Wal-Mart approves new share repurchase program

FAYETTEVILLE, Ark. — Wal-Mart Stores Inc. says its board has approved a new $15 billion stock buyback.

Tom Schoewe, Wal-Mart’s chief financial officer, says that the program replaces the previous $15 billion program, announced at last year’s shareholders’ meeting. That program had about $4.7 billion of remaining authorization.

Wal-Mart also says it will pay shareholders more than $4.5 billion in dividends during the current fiscal year. Wal-Mart has increased its dividend every year since 1974.

The company made the announcement at its annual shareholders’ meeting in Fayetteville, Ark., 30 miles from its headquarters in Bentonville, Ark.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

FAYETTEVILLE, Arkansas (AP) — Wal-Mart Stores Inc. executives pledged Friday at the company’s annual shareholders extravaganza to continue to change the company’s merchandise mix and to rebuild sales.

The world’s largest retailer reached $100 billion in sales in its international division for the first time and its Sam’s Club warehouse stores built membership to 47 million.

But its Walmart grocery and general merchandise stores saw traffic decline after the company changed its merchandise, reducing the number of products on its shelves as part of a campaign to declutter stores.

Wal-Mart Vice Chairman Eduardo Castro-Wright said high fuel prices, competition and unemployment have also pressured sales.

“These external headwinds are real and they have contributed to slower traffic in our stores over the last couple of quarters,” Castro-Wright said. Those factors also led to four consecutive quarters of a decline in revenue at stores open at least a year, a key indicator of how a retailer is faring.

Castro-Wright also alluded to Wal-Mart’s removal of some name-brand items from its shelves and replacing them with goods under Wal-Mart’s own label.

“We have been fine-tuning our merchandise strategy,” he said.

Castro-Wright said the company is doing more to call attention to its price rollbacks to help build customer loyalty.

“In any economy, in any competition, your Walmart will always be the price leader,” he said.

Sam’s Club President and CEO Brian Cornell said the warehouse store division closed underperforming stores, increased membership income and said traffic was up in all four quarters last fiscal year.

“In this challenging economy, making saving simple is more important to our members than ever before,” he said.

While Sam’s Club carries prepared foods, Cornell noted that Sam’s Club is known for its fresh foods “that make our members say ‘wow.’”

The meeting, held in a packed basketball arena on the University of Arkansas campus, had its usual celebrity appearances. Jamie Foxx performed hip hop and sang in his Ray Charles persona. He also acted as master of ceremonies.