Dec. 24, 2014, 1:49 AM
- UPS (NYSE:UPS) and FedEx (NYSE:FDX) have started limiting their air express deliveries after a last-minute increase in shipped packages caused some retailers to exceed agreed-upon limits.
- The move is aimed at avoiding a repeat of last year’s disaster, when an estimated 2M express packages didn’t arrive in time before Christmas due to a combination of a limited air fleet, bad weather and a surge in last-minute deliveries.
- Both UPS and FedEx previously announced that if unplanned package volumes threatened to overload their systems, they could refuse to take them.
Dec. 19, 2014, 9:29 AM
- The Pacific Maritime Association and International Longshore & Warehouse Union are far apart in their negotiations on a new labor contract, according to reports.
- The ports of Long Beach and Los Angeles have seen a loss of productivity due to worker slowdown actions as the stalemate continues.
- FedEx (NYSE:FDX) warned yesterday that deliveries to retailers have been delayed more than expected. Both FedEx and UPS (NYSE:UPS) face extra logistical costs due to the shipping delays and could see a slight dip in total volume.
- Lululemon (NASDAQ:LULU) is one of the few retailers to put a number to the shipment backup, saying Q4 revenue would be impacted by $10M.
- Other companies viewed as having some risk associated with the slowdown include Wal-Mart (NYSE:WMT), Ann (NYSE:ANN), Macy's (NYSE:M), Kohl's (NYSE:KSS), Ralph Lauren (NYSE:RL), and Carter's (NYSE:CRI).
Dec. 18, 2014, 11:00 AM
- Goldman Sach makes a giant call on FedEx (FDX +2.1%) following the company's FQ2 earnings miss.
- Shares are taken to a Buy rating and lopped onto the Conviction List maintained at the investment firm.
- FedEx is one of the most compelling names in the transportation sector due to the potential for margin expansion, says GS.
- The impact of e-commerce is seen as a positive long-term factor with the the higher-margin Ground segment set to be a bigger contributor the the mix.
Dec. 17, 2014, 7:42 AM
- FedEx (NYSE:FDX) reports a 3% revenue gain in its Express segment during FQ2.
- U.S. package volume was up 7% during the period.
- Revenue in the Ground segment rose 8% to $3.06B, although higher network expansion costs clipped the bottom line.
- The Freight segment saw an 11% increase in revenue to $1.59B and 35% pop in operating income to $112M.
- Company-wide operating margin +120 bps to 8.5% on gains from higher volume.
- Share repurchases made by the company during FQ2 added $0.16 to EPS.
- Guidance: FedEx backs its previous outlook for FY15 EPS of $8.50-$9.00. A "modest" benefit from fuel prices is anticipated.
- FDX -2.7% premarket.
Dec. 17, 2014, 7:31 AM
Dec. 16, 2014, 5:30 PM
Dec. 16, 2014, 4:08 PM| 2 Comments
Dec. 15, 2014, 6:22 PM
- FedEX (NYSE:FDX) agrees to acquire closely held logistics firm Genco, a specialist in handling product returns as FDX seeks to beef up its e-commerce operations.
- Financial terms for the transaction are not provided, but FDX says Genco has annual sales of $1.6B and handles more than 600M returned items per year.
- Retail e-commerce is overtaking the traditional business-to-business deliveries that once drove sales at shipping companies.
Dec. 10, 2014, 8:21 AM
- Best Buy (NYSE:BBY) is advertising free two-day shipping on thousands of items, reports RetailDive.
- The move by the company is a reaction to the aggressive shipping promotions from Target and Amazon this holiday season.
- Analysts see a marginal mix benefit for FedEX (NYSE:FDX) and UPS (NYSE:UPS) from the increase in retailers pushing their free two-day shipping services.
Dec. 2, 2014, 7:12 AM| 2 Comments
Dec. 1, 2014, 7:50 AM
- Comscore estimates e-commerce spending rose 32% on Thanksgiving Day to $1.01B and 26% on Black Friday to $1.51B.
- Most retail analysts are sticking with their forecast for 4.0%-4.5% growth for holiday sales this year, with early shopping and e-commerce making up for a dip in store traffic on Black Friday.
- Apparel sellers in particular came out with a stronger online push this year.
- Related stocks: OTCPK:AMZZ, EBAY, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS, FDX, UPS, DKS, BBY, LULU, KATE, VRA, SPLS.
Nov. 28, 2014, 10:11 AM
Nov. 21, 2014, 9:08 AM
Nov. 19, 2014, 2:27 PM
- comScore expects online retail spending to rise 16% to $61B during the holiday months of November and December.
- Desktop spending is forecast to increase 14% to $53.2B, while mobile spending is seen growing 25% to $7.9B.
- Expectations are high for the retail giants: Last year, Q4 revenue growth at Amazon (NASDAQ:AMZN) easily outpaced the overall level of holiday e-commerce sales. Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) are coming off quarters with +20% growth in e-commerce, while Staples (NASDAQ:SPLS) came in at 9%.
- Shippers: FedEx (NYSE:FDX) expects an increase of holiday packages of 8.8% this year, while UPS is prepping for a 11% rise.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, RCD, UGE, SZK
Nov. 9, 2014, 8:26 PM
- This latest round, reports the WSJ, could total up to $2B, and is likely to value Uber at more than $30B. The company hardly needs the money - having raised $1.2B at an $18.2B valuation just five months ago - but stacking the balance sheet even higher is probably a good idea given strong investor demand for shares combining with the race against Lyft to add drivers and passengers around the globe.
- Uber CEO Travis Kalanick has said revenue is at least doubling every six months and the company is profitable in several of its largest markets. Next steps? In August, the company launched UberEssentials in parts of D.C. allowing customers to order for delivery more than 60 common household items such as deodorant, batteries, and chips, and on Friday Uber hired Tom Fallows, the head of Google's same-day delivery business.
- Longer-term, Uber could pose a challenge to logistics providers like FedEx (NYSE:FDX) and UPS, and the company has tested deliveries of items including ice cream, flu shots, and fresh meals.
Nov. 8, 2014, 9:25 AM
- Energy companies finally are starting to halt a few new U.S. drilling projects as oil prices fall, which Barclays believes may put the U.S. oil boom at risk but "on balance, we believe lower oil prices are good.”
- If strong U.S. energy growth is interrupted, spending in the sector could be cut by $40B, but consumers could save $70B next year as the price at the pump falls for gasoline and diesel, according to Barclays head of U.S. equity strategy Jonathan Glionna.
- The most likely beneficiaries would be discretionary areas such as restaurants, entertainment, apparel, electronics and furniture, he says.
- Glionna lists 27 stocks that could benefit from lower oil prices: AAL, AGCO, AXL, BERY, BLMN, BWLD, CHH, CLX, DE, DPZ, FDX, GM, HD, KMB, KR, KSS, MHK, MMM, PENN, PPG, SAVE, SHW, TGT, UPS, VAL, WMS, WMT.
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