Esther Fung and Dean Seal of The Wall Street Journal report that UPS is lowering prices to gain inflation-weary customers. They write:
United Parcel Service UPS cut prices to reverse a prolonged slump in package volume and lowered its revenue outlook for the year, prompting a selloff of its shares.
UPS reported weaker profit and revenue for the second quarter, missing Wall Street estimates. Average revenue per domestic package fell 2.6% from a year earlier, the company’s second straight quarter of price cuts.
The company’s shares fell more than 12% in early trading Tuesday.
The parcel carrier’s customers are choosing cheaper and lengthier ground delivery options over pricier overnight options that use planes, executives said. […]
UPS added that it is restarting its share-repurchase program, planning to buy $1 billion annually and $500 million in shares in 2024.
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