FedEx (FEDEX) has just revealed that it is facing some major “headwinds” as it battles a “softer demand environment” in the industrial economy as consumers tighten their spending.
In FedEx’s first-quarter earnings report for 2024, the shipping carrier revealed that it earned a revenue of $21.6 billion during the quarter, which is a decline from the $21.7 billion it earned during the same time period in 2023.
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The company also reported a roughly 23% year-over-year decrease in its net income, while it earned an adjusted $3.60 per share during the quarter, which is almost a 21% decrease from the $4.55 per share it earned during the same period the year before.
In the report, FedEx revealed that its earnings were “negatively affected by a mix shift,” which includes a “reduced demand for priority services,” and a “increased demand for deferred services.”
During an earnings call on Sept. 19, which discussed the report, FedEx CEO Rajesh Subramaniam claimed that the U.S. domestic package market faced “weaker” demand than previously expected, as the company faced a “slightly lower” average daily package volume.
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