FDX » Topics » FedEx Kinkos Segment Outlook

This excerpt taken from the FDX 10-K filed Jul 13, 2007.
FedEx Kinko’s Segment Outlook
We expect increased revenue at FedEx Kinko’s in 2008 primarily due to the new store openings associated with the multi-year network expansion, together with a sales force realignment and marketing and service initiatives. The network expansion program, combined with employee training and retention programs, is expected to negatively impact operating income and operating margin in 2008. These investments, however, are focused on long-term profit and margin growth. Initiatives in e-commerce technology such as Print Online and new service offerings, including our direct mail service, are expected to support additional growth opportunities for 2008 and beyond. Capital spending is expected to increase at FedEx Kinko’s in 2008 primarily due to the multi-year network expansion and technology investments. FedEx Kinko’s plans to open approximately 300 new centers in 2008, which will bring the total number of centers to approximately 2,000 by the end of the year.


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This excerpt taken from the FDX 10-K filed Jul 14, 2006.

FedEx Kinko’s Segment Outlook

FedEx Kinko’s has initiated a multi-year network expansion program to increase the retail locations for customer access to FedEx Kinko’s business services and the FedEx Express and FedEx Ground shipping network. In addition, FedEx Kinko’s will focus on key strategies related to improving customer service and employee training and development. The network expansion program, combined with employee training programs, is anticipated to result in modest revenue growth; however, profitability will be negatively impacted by costs associated with adding new locations and expenses associated with enhancing service levels.

This excerpt taken from the FDX 10-K filed Jul 14, 2005.

FedEx Kinko’s Segment Outlook

During 2006, we expect FedEx Kinko’s revenue growth, which will be led by the full year impact of the transition of FedEx World Service Centers to FedEx Kinko’s Ship Centers, the growth of current lines of business and the expansion of our retail network.

We expect the 2006 operating margin will be comparable to 2005, as the completion of rebranding and increased productivity efforts will be partially offset by costs related to growth initiatives. Decreased capital spending is expected during 2006 due primarily to the completion of rebranding and other integration initiatives. Capital spending in 2006 will be directed toward systems enhancements and new retail locations.


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