By Shivansh Tiwary and Lisa Baertlein (Reuters) -Shares of FedEx slumped almost 16% on Friday, the worst in two years, after a dismal first-quarter profit drop due to anemic economic conditions and an ongoing customer shift toward slower,

FedEx said a weaker industrial economy produced a “challenging” quarter that caused it to trim its outlook for later this year, a sign of possible cooling in the wider economy.

FedEx reported a lower first-quarter profit on Thursday as demand in the package industry remained muted, especially for priority services.

The package-delivery giant said reduced demand for priority services and higher operating costs weighed on its results.

FedEx’s results were dragged down by weaker-than-expected demand, particularly in the U.S. domestic package market.

(Reuters) - FedEx Corp shares slumped on Friday after the parcel giant cut its annual revenue forecast and reported a sharp fall in profits, owing to weak demand for high-margin speedy delivery services. Shares of the company were down nearly 13% in premarket trading, with rival UPS down 2.4%.

FedEx came up short on top and bottom lines, and guidance revisions suggest there is more bad news to come in fiscal 2025.