FedEx (FDX) shares fell over 1% in early trading on Wednesday after the shipping giant posted its third consecutive d🌠rop in quarterly s𒀰ales and gave tepid guidance as the boom in shipping demand during the pandemic slowed.

FedEx reported fiscal 2023 fourth quarter revenue declined 10.2% to $21.9 billion, short of forecasts. Earnings per share (EPS) sank 28% to $4.94, although that was better than expected. 

The company struggled as the surge in shipping demand during pandemic lockdowns eased. In response, FedEx said it has begun a transformatio𝓰nal procꦿess targeting savings of $4 billion over the next two years by merging its Ground and Express networks. It explained that as part of its transformational process, all FedEx Ground operations and personnel in Canada will transition to Federal Express Canada beginning next April.

CEO Raj Subramaniam said the “solid close” of the 2023 fiscal year demonstrates the “significant progress” the company has made𝕴 in advancing its plan,꧃ “while adapting to the dynamic demand environment.”

Still, FedEx predicted fiscal year 2024 sales to be flat to low-single-digit-percent growth. It expe༒cts EPS of $16.50 to $18.50, while analysts had been looking for $18.30. 

The company also announced that CFO Mike Lenz will retire next month, and that an external search for a replacement is underway.

Despite Wednesday morning's decline, shares of FedEx were still up more than 30% year-to-date.