The news: FedEx’s fiscal 2023 got off to a bleak start. The company’s profits fell 15% year-over-year (YoY) due to “global volume softness” that worsened toward the end of the quarter, causing CEO Raj Subramaniam to warn that a worldwide recession appears imminent.
Falling short: Revenues for FedEx Express, the company’s time-definite shipping service, fell $500 million short of expectations—while revenues for FedEx Ground, which handles most ecommerce deliveries, were $300 million less than expected.
Crying wolf? Although FedEx cited “macroeconomic weakness in Asia and service challenges in Europe” as the primary reasons for its revenue miss, it’s unclear whether these conditions have disproportionately affected FedEx or are actually symptomatic of a global downturn.
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