FedEx still benefits from peak in online shopping

Parcel delivery company FedEx continued to do good business in the first quarter of its broken fiscal year. With more people shopping online worldwide, FedEx was able to deliver more parcels. Numbers increased both internationally and within the United States.

This also led to a significant increase in sales. In the period to the end of August, FedEx converted $19.3 billion, $2.3 billion more than in the same period a year earlier.

FedEx did incur more costs to cope with the increased demand. It also spent more money on variable pay and measures to protect employees from the coronavirus. Despite this, net profit was $1.3 billion, up from $745 million in the first quarter of the previous year.

FedEX does not yet give any expectations for the entire current financial year. The parcel delivery company does, however, expect to have to invest more money in expanding capacity than the company had previously anticipated.