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FedEx Gains as it Forecasts a Bumper Holiday Season -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – FedEx stock (NYSE:) rose 2% Monday as the company predicted a bumper holiday season.

CNBC received information from a representative of the company that Monday is its busiest holiday day in 2021.

“We’ve seen a lot of people actually starting their Christmas shopping in the month of October, which is fundamentally different than we have seen traditionally in the past,” Ryan Kelly, vice president of global e-commerce at FedEx told CNBC.

FedEx claims it will ship 100 million more packages than in the pre-Covid 2019 season, and 10% more than its record-breaking 2020 pandemic.

Kelly told CNBC the “ship from store” trend, now being adopted with many retail chains like Target Now, (NYSE:), and Walmart (NYSE 🙂 have reduced the shipping network load.

FedEx previously stated that it will increase its holiday shipping rates. The company’s first-quarter revenue came in at $19.3 billion, around 12% lower than a year earlier, affected by supply chain issues and a labor crunch.

According to the company’s September forecast, it had lowered the EPS for the current year at approximately $18.87. That is a decrease from the $19.40 that was previously the guidance range.

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