Wal-Mart, the world's largest retailer, on Wednesday cut its sales forecast for its next fiscal year and projected a drop in capital spending.
Wal-Mart Stores said it now expected sales would grow between two and three percent in fiscal year 2015 that begins February 1, down from the previous forecast of three percent to five percent.
For fiscal 2016, the US retail giant projected sales growth of two-four percent.
The company also said it plans capital spending of $10.6-$11.6 billion in 2016, down from its projection of $11.3-$11.8 billion for 2015. One reason is a shift to greater emphasis on e-commerce.
"Our business and customers continue to evolve and so will the way we deploy capital," said chief financial officer Charles Holley.
"We will invest more heavily in e-commerce initiatives, while temporarily moderating our global physical growth, particularly larger stores."
In August, Wal-Mart cut its profit outlook for this year amid weak sales in its key US division.
The retail giant has said sales in the US have been hit by cautious consumer sentiment, cutbacks in public assistance programs and an uncertain labor market.
Shares in Dow member Wal-Mart closed 3.6 percent lower at $75.20 on the New York Stock Exchange.
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