Fedex says home delivery growth is eroding margins

March 22, 2017

Fedex missed its earnings forecast for its most recently-reported quarter, explaining that the explosion of volume in e-commerce deliveries to home addresses is bringing overall margins down, since office deliveries usually involve multiple packages at each stop. The company, however, expressed optimism for the year ahead and dismissed concerns over growing competition from Amazon, which is expanding its own delivery capabilities.

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