FedEx (NYSE:FDX), a package delivery company, said it expects to see a record number of shipments during this year's busy holiday season, buoyed by rising retail sales and a jump in ecommerce.
The Memphis, Tennessee-based company said it anticipates to handle 317mln shipments between Black Friday, the day after Thanksgiving and traditionally the busiest U.S. shopping day of the year, and Christmas Eve, an increase of 12.4% over the previous year.
The past two years have proven difficult to predict for both FedEx and its competitor, United Parcel Service, as volumes came in higher than expected in 2013 and spiked unexpectedly in 2014.
UPS and FedEx have profited from the continuing shift in shopping from stores to online.
FedEx has spent heavily on its ground network over the past few years to keep up with consumer demand, including $1.6bn this year.
The company said it plans to hire more than 55,000 seasonal workers this year to help with the volume, up from 50,000 last year.
The first big test for the delivery companies will come on Monday, Nov. 30, so-called Cyber Monday, when FedEx expects to handle at least 20 million packages or double the daily average during the holiday season.
Shares slid 0.6% to $158.58, erasing an earlier gain, at 2:55 p.m. in New York. The stock is down 8.8%.