FedEx continues to thrive thanks to everyone who buys things online

Shares of FedEx (FDX) rose more than 6% on Friday after the shipping giant reported its revenue and revenue for its latest quarter which easily exceeded forecasts and offered a healthy outlook for 2021.

Sales rose more than 20% to $ 21.5 billion in the quarter, while net revenue more than doubled to $ 890 million.

A large part of the growth is due to the rising demand for products that people buy on their phones and computers – a trend that will not go away any time soon.

FedEx’s results are even more impressive, given the sloppy break with the company Amazon (AMZN) in 2019. But FedEx found many willing retailers to work with and more than replaced the lost revenue from Amazon.

“We remain excited about the diversification and evolution of the e-commerce market,” Brie Carere, Chief Marketing and Communications Officer at FedEx, said during a conference call with analysts on Thursday night. “Some of our largest retail customers have reported the growth rates of e-commerce in the high double and even triple digits until 2020,”

Carere added that in the fourth quarter of last year, e-commerce accounted for 20% of all U.S. retail sales, significantly higher than pre-pandemic levels.

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The outbreak of Covid-19 and the consequent increase in digital shopping was a boom for both FedEx and the best competitor UPS (UPS). Shares in FedEx have risen 150% over the past 12 months, while UPS shares have risen 70%.

Carere rejected his concern that FedEx would lose momentum because more people are going to buy and buy again in the physical world after vaccinations with Covid-19 increase.

She conceded that there is ‘the potential for a short-term delay in e-commerce stores’, but that digital commerce will continue to grow as a percentage of the overall retail market.

FedEx – and UPS, for that matter – also benefit from contracts to ship Covid-19 vaccines and related supplies around the world. This includes an agreement in the US to Modern (MRNA) and Pfizer (PFE)/BioNTech (BNTX) shots as well as the newly approved single dose Johnson & Johnson (JNJ) vaccine.

FredEx CEO Fred Smith said during the analysis call that the company transports vaccines to more than 220 countries and territories around the world.

The delivery of vaccines has so far been ‘almost flawless’, he added, pointing out that ‘you can count on the number of problems you have caused in millions’.

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