FedEx spending on distribution hubs weighs on its 2Q profit
NEW YORK — FedEx is spending heavily on distribution hubs and hiring more employees to meet heaving demand for its shipping services, expenses that weighed on its second-quarter profit.
The Memphis, Tennessee-based company on Tuesday reported adjusted earnings that missed Wall Street expectations. Its shares fell 3 percent in after-hours trading.
FedEx is in the midst of what it expects to be another record-breaking holiday shipping season. It said demand is higher than usual this year since Christmas Day falls on a Sunday.