FedEx (NYSE:FDX) Corp tanked 15% in overnight trading as a warning that sales this year would undershoot expectations accompanied a miss on earnings in its latest quarter.
The delivery group now expects a low-single-digit percentage decline in revenue year over year, compared to a previous forecast of flat revenue growth.
“We expect revenue will continue to be pressured by volatile macroeconomic conditions negatively affecting customer demand for our services across our transportation companies," said the statement.
A drop in demand from the US Postal Service had hit the air-based Express division especially hard, said the group, though elsewhere it said it was confident in retaining parcel customers picked up from UPS during its rival's battle with unions.
FedEx’s warning also hit shares in UPS, which dipped 3%.
Ahead of the opening, FedEx shares were down US$43.27 at US$240 though are still up 36% since the start of 2023.