Wal-Mart Stores Inc. executives unveiled plans to spend $15 billion on share repurchases and vowed the company will keep the customers it has gained in the recession.
The giant retailer has been on a roll during the recession, outperforming peers such as Target Corp. as cash-strapped consumers trade down to discount stores. But Wal-Mart's stock has dropped roughly 9% in 2009 because some investors and analysts doubt that it can maintain its momentum once the economy bounces back.
"Our customers will stay with us when this economy turns around and they have more discretionary spending, I promise," Wal-Mart Chief Executive Mike Duke said Friday at the company's annual shareholder meeting.
New customers made up 17% of Wal-Mart's increased shopper visits in the first quarter of the year, and their purchases were 40% higher on average than its customary shoppers.
Chief Financial Officer Tom Schoewe said Wal-Mart approved a new $15 billion share repurchase plan to replace a $15 billion plan from 2007. That plan still had $3.4 billion left to spend; Wal-Mart postponed buybacks last year as the recession took hold, but resumed buying shares earlier this year.
Wal-Mart shares rose 20 cents to $51.07 at 4 p.m. on the New York Stock Exchange.
Friday's meeting was the first in the tenure of Mr. Duke, who took the helm earlier this year, becoming only the fifth CEO in company history. Mr. Duke succeeded H. Lee Scott Jr., who continues as an advisor.
Mr. Duke vowed to continue Wal-Mart's growth, but to do so in a more socially conscious way. After the meeting, he told reporters he wants to improve the company's promotion of women executives, particularly overseas.
As is traditional for Wal-Mart, the meeting was a Roman spectacle of sorts, where the company eschewed its skinflint practices to celebrate its financial performance and growing list of international conquests.
The Vegas-style festivities included an appearance by basketball legend Michael Jordan and musical performances by American Idol winner Kris Allen and teen phenomenon Miley Cyrus. Actor Ben Stiller hosted the lavish production.
