|Bid||136.80 x 800|
|Ask||136.82 x 800|
|Day's Range||135.40 - 137.15|
|52 Week Range||96.37 - 139.78|
|Beta (3Y Monthly)||0.71|
|PE Ratio (TTM)||22.40|
|Earnings Date||Aug 28, 2019 - Sep 3, 2019|
|Forward Dividend & Yield||1.28 (0.94%)|
|1y Target Est||139.64|
(Bloomberg) -- FedEx Corp. predicted a “transition year’’ for fiscal 2020, with an improving outlook for e-commerce profits tempered by concerns that international trade tensions will worsen.Revenue per package in the ground-delivery operation rose 2.2% in the quarter ending May 31 as volume growth accelerated to 8.8%, FedEx said in a statement late Tuesday. That signaled progress in the courier’s push to extract higher profits from the surge in home deliveries driven by online shopping.FedEx is stepping up efforts to become the low-cost provider of e-commerce deliveries, paring jobs and partnering with companies such as Dollar General Corp. to add pickup and drop-off sites. But FedEx is struggling to shore up its Express air-delivery division -- the unit most threatened by escalating trade tensions, especially between the U.S. and China.“The utilization of the ground network and the opportunity they feel that they have with e-commerce to significantly grow is the positive that people are taking out of this,” said Trip Miller, managing partner at Gullane Capital Partners, which owns FedEx shares. “But certainly, we didn’t hear anything positive about China. We didn’t hear anything positive about Europe.”The shares fell 1.1% to $154.21 at 9:45 a.m. Wednesday in New York. The shares had dropped 3.3% this year through Tuesday, while rival United Parcel Service Inc. was little changed and a Standard & Poor’s index of industrial companies advanced 19%.Weak ForecastFedEx has been struggling to keep up with Wall Street’s expectations as the company pours money into making deliveries more efficient and struggles with a cloudy trade outlook.Adjusted earnings for the current fiscal year will drop by “a mid-single-digit percentage” from $15.52 a share in the year just ended, FedEx said in the statement. Analysts were expecting $16.15 in fiscal 2020 -- an estimate that had already been whittled down from $20 about six months ago.“Our fiscal 2020 performance is being negatively affected by continued weakness in global trade and industrial production, especially at FedEx Express,” said Chief Financial Officer Alan Graf.That impact extended a longstanding sense of frustration at FedEx with President Donald Trump’s willingness to stoke trade tensions, said Chief Executive Officer Fred Smith.“Clearly, we’ve been very disappointed over the last few years with the assumptions that we made on the growth in international trade, particularly with the Trump administration,” Smith said on a conference call with analysts and investors. “We have become a protectionist country.”FedEx fired a new weapon in the simmering U.S.-China trade war this week, suing the Trump administration to block enforcement of trade restrictions that have placed the company in Beijing’s crosshairs.The federal lawsuit came after the White House barred U.S. companies from selling technology to Chinese telecommunications giant Huawei Technologies Co.While trying to comply, FedEx employees mistakenly flagged packages involving Huawei. Now China is considering adding the courier to a list of so-called unreliable entities.Understanding China’s ‘Unreliable Entities’ Blacklist: QuickTakeE-Commerce ChallengeCloser to home, the next 12 months will be pivotal for FedEx as it seeks to stem the decline in profit margins at the company’s ground unit. Recent moves include extending deliveries to seven days a week and reducing reliance on the U.S. Postal Service.FedEx’s Express business cut ties with Amazon.com Inc. as the largest online retailer muscles into the delivery business. FedEx said it would focus on more profitable customers.The challenge for FedEx -- and UPS -- is that deliveries to homes, where drivers often handle a single package at each stop, tend to be less profitable than business deliveries, where they might pick up or drop off several parcels.“Fiscal year 2020 is in many ways a transition year for FedEx as we continue to reinvigorate our business to capitalize on e-commerce growth and execute significant initiatives to reduce our cost to serve in the U.S.,” said Chief Operating Officer Rajesh Subramaniam.Those efforts are softening the blow from the weak profit forecast for fiscal 2020 -- but the pressure will remain on FedEx to show sustained gains from the rise of online shopping.“FedEx is not out of the woods,” Cowen analyst Helane Becker said in a note to investors, “but base expectations are lower and if there is any shift towards a more optimistic macro environment, we expect shares to move higher from current levels.”(Updates stock action in fifth paragraph.)\--With assistance from Karen Lin.To contact the reporter on this story: Thomas Black in Dallas at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Tony Robinson, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Kroger Co. fell the most in more than three months after posting an uneven quarterly performance, fueling investor concerns that Walmart Inc. and other rivals are taking sales and shoppers away from the grocer.Same-store sales excluding fuel rose 1.5% last quarter, short of projections, and while earnings narrowly beat analysts’ estimates, profit margins decreased again because of investments the company’s making to keep pace with the competition.Kroger, America’s biggest traditional supermarket chain, has found life more difficult amid the rock-bottom prices and improved quality offered by discounters like Walmart and Germany’s Aldi. It doesn’t help that Dollar General Corp. is beefing up its grocery section, adding more fresh and frozen food while entering more urban markets with stores that cater to millennials. Even drugstores sell plenty of food nowadays, which has prompted Kroger to partner with Walgreens to sell groceries in some locations.“While the results generally met expectations, the other large retailers of food that we cover performed a little better,” Joe Feldman, an analyst at Telsey Advisory Group, said in a note.Digital SalesIn response, Kroger is pushing hard to bolster online sales, which grew 42% last quarter. The company has also tested autonomous deliveries in Texas and Arizona. About 35 million more Americans are now buying food online compared with a year ago, according to Coresight Research, but penetration is still below markets like the U.K. Kroger generated about $5 billion in digital sales last year, and by the end of this year it plans to offer pickup or delivery service for all of its U.S. shoppers, up from about 90% last year.The shares sank as much as 5.1% to $22.43 in New York Thursday. They had already lost 14% this year through Wednesday’s close, compared with double-digit increases for both Walmart and the benchmark S&P 500.Kroger’s e-commerce investments, as well as a partnership with Microsoft Corp. to roll out digital shelf labels and explore other next-generation technology, have dented profitability in the short term, sending investors elsewhere.Profit excluding some items amounted to 72 cents a share in the period that ended May 25, exceeding the average analyst estimate by a penny. Kroger reiterated its full-year sales and profit guidance.To contact the reporter on this story: Matthew Boyle in New York at email@example.comTo contact the editors responsible for this story: Crayton Harrison at firstname.lastname@example.org, Lisa Wolfson, Anne Riley MoffatFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Fossil's (FOSL) wearables unit and e-commerce sales channel are expanding steadily. However, weak traditional watches, leathers and jewelry sales are a concern.
Burlington Stores (BURL) is gaining from strong comps performance, store expansion plans and other long-term strategies. However, higher freight costs and SG&A expenses pose concerns.
Dollar General's (DG) commitment toward better pricing, effective inventory management and merchandise initiatives have aided it in carving out a niche in the retail space.
Discount retailers have succeeded in creating a niche despite the rising popularity of online retailers that has compelled many traditional operators to exit.
With e-commerce on the rise, FedEx is continuing to expand its OnSite network to reach more of the U.S. population.
This type of retail would be important, as the central business district's current lineup doesn’t have the services needed to cater to new demands.
FedEx (NYSE: FDX) and Dollar General (NYSE: DG) announced they will partner up to offer a drop off and pickup at thousands of Dollar General stores. The businesses plan to begin rolling out the service in more than 1,500 Dollar General stores in late summer, building to a total of more than 8,000 stores by the end of 2020. “Dollar General is the perfect retailer to help us meet the growing need for convenient, secure drop-off and pickup options in a variety of rural communities,” said Scott Harkins, senior vice president, customer channel marketing at FedEx Services in a press statement.
FedEx will expand its drop-off and pickup services thanks to a new partnership with Dollar General. Monday, June 17 the Memphis-based shipping and logistics giant and the Goodlettsville, Tennessee, based retailer announced a strategic alliance. As part of that alliance, thousands of Dollar General stores will begin to offer FedEx drop-off and pickup services as part of FedEx's OnSite program.
Online retail has changed the way consumers shop. These discount retailers have reinvented themselves to thrive in the digital era.
FedEx Corp. (FDX) and Dollar General (DG) announced today a strategic alliance that will offer new, convenient access to FedEx drop-off and pickup services at thousands of Dollar General stores. The effort is designed to increase access for all customers, particularly those living in rural communities. FedEx and Dollar General plan to begin rolling out the service in more than 1,500 Dollar General stores in late summer 2019, building to a total of more than 8,000 stores by the end of 2020.
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Retail has become the microcosm for both the stock market and for society as a whole. That's the only conclusion you can reach when you sort through the now completed earnings season for the company's linked to the consumer.
Todd Vasos has been the CEO of Dollar General Corporation (NYSE:DG) since 2015. First, this article will compare CEO...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Dollar General Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.