Service Performance Remains Stable Across All Mail Categories

The total invoiced value (or publishers' sales to accounts) of U.K. publisher sales rose to £6.3 billion in 2019, 4% higher than in 2018 and 20% higher than in 2015, making 2019 the biggest year ever for U.K. publishing. The Publishers Association’s new figures, released in its annual "Yearbook" report, shows growth in both print and digital sales. The significance of export sales is underlined by the report: exports accounted for 59% of total sales. Other headline facts include: print sales up 3% to £3.5 billion; digital sales up 4% to £2.8 billion; home sales up 4% to £2.4 billion; export sales up 3% to £3.7 billion; consumer audiobook downloads sales up 39% to £97 million, and nonfiction and reference sales up to 6% to £1 billion.

*Net sales increased 10.1% to $2.5 billion compared to $2.3 billion in the second quarter of fiscal 2022 primarily due to increased comparable sales, strong new store performance, and growth in other revenue. *Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 8.0% compared to an increase of 14.4% in the second quarter of fiscal 2022, driven by a 9.0% increase in transactions and a 1.0% decrease in average ticket. *Gross profit increased 7.1% to $993.6 million compared to $928.2 million in the second quarter of fiscal 2022. As a percentage of net sales, gross profit decreased to 39.3% compared to 40.4% in the second quarter of fiscal 2022, primarily due to lower merchandise margin, higher inventory shrink, and higher supply chain costs, partially offset by strong growth in other revenue and leverage of store fixed costs. *Operating income increased to $391.6 million, or 15.5% of net sales, compared to $391.4 million, or 17.0% of net sales. *Net income increased to $300.1 million compared to $295.7 million.

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.