Target Provides Update on Holiday Sales

FY23 fourth quarter service performance scores covering July 1 through August 18, included: *First-Class Mail: 91.4 percent of First-Class Mail delivered on time against the USPS service standard, a decrease of 1.2 percentage points from the fiscal third quarter. *Marketing Mail: 95.2 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.1 percent of Periodicals delivered on time against the USPS service standard, a decrease of 2.8 percentage points from the fiscal third quarter.

Overall, the Commission’s report provides an in-depth analysis and several recommendations regarding each of the Postal Service’s four performance goals: *The Postal Service partially met the High-Quality Service performance goal because it met seven of the eight targets for the High-Quality Service performance indicators. In FY 2022, the Postal Service failed to meet its target for Single-Piece First-Class Mail, 3-5-Day. *The Postal Service partially met the Excellent Customer Experience performance goal because it exceeded targets for three performance indicators (Business Service Network, Customer Care Center, and usps.com) but missed targets for five other performance indicators. *The Postal Service partially met the Safe Workplace and Engaged Workforce performance goal because it exceeded the FY 2022 Total Accident Rate target but missed the FY 2022 Grand Mean Engagement Score target. *The Postal Service met the Financial Health performance goal because the FY 2022 Controllable Income (Loss) result was better than the target.

In a Form 8-K filed with the Securities and Exchange Commission on April 1, 2024, FedEx Corporation announced the agreement between FedEx Express and the United States Postal Service (“USPS”) for domestic transportation services will expire by its terms on September 29, 2024. This decision was made on March 29, 2024, following extensive discussions. FedEx and the United States Postal Service have had a long and productive relationship for more than 20 years. Over time, our respective strategies have shifted as we transform our networks and operations for the future. We have long said we would extend the contract with the USPS if we could agree to commercial terms in the best interests of FedEx shareholders. Although we were unable to reach mutually agreeable terms, we remain committed to delivering outstanding service through the completion of our contract in September.