Source: FedEx Corp.
The season includes one more day than last year and is expected to be bolstered by three volume spikes, including Cyber Monday and the first two Mondays in December, in which the company expects to move more than double its average daily volume. The company has included peak projections in its earnings guidance for fiscal year 2016.
Rival United Parcel Service Inc. (NYSE: UPS) reports third-quarter earnings on Tuesday and may have something to say about its holiday outlook then. The company’s pilots union last week authorized a strike vote in a contract negotiation that has been simmering for five years. Worse news for UPS is that the Teamsters union, which represents about 250,000 of the company’s employees, has said its members will not cross picket lines. At the same time, FedEx struck a six-year deal with its pilots last week.
FedEx plans to hire more than 55,000 seasonal employees to help with the holiday rush and also has invested more in new aircraft and in FedEx Ground growth.
The National Retail Federation expects sales in November and December to grow 3.7% to $630.5 billion. The group also predicts e-commerce sales will continue to grow at a faster rate than brick-and-mortar sales, rising between 6% and 8% to as much as $105 billion.
Shares of FedEx traded down about 0.3% Monday morning, at $158.99 in a 52-week range of $130.13 to $185.19.
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