Wal-Mart Stores Inc. (NYSE: WMT) rose over 4 percent on Tuesday after the retailers expected 40 percent increase in its e-commerce sales in fiscal year January 2019 and announced a $20 billion share repurchase program.
Wal-Mart continues to invest heavily in its e-commerce business. The company plans to add 1,000 online-grocery pick up location in the U.S. in fiscal 2019, aiming to attract more customers to buy food on Walmart.com. The company expects e-commerce sales to surge by roughly 40 percent in fiscal 2019. The company in August reported online sales in its U.S jumped 60 percent in the second quarter. The move will help it better compete with Amazon.com, Inc. (NASDAQ: AMZN), who bought Whole Food Market this year.
"We have good momentum in the business, we're executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money," CEO Doug McMillon said in prepared remarks. "We're combining the accessibility of our stores with e-commerce to provide new and exciting ways for customers to shop,"
Wal-Mart also announced a $20 billion share repurchase program. The new plan replaced its existing program announced in October 2015.
Wal-Mart shares jump 4.4 percent to $84.10 in the early trading in New York. The stock gained 21.7 percent this year.