FedEx Kinko’s sees revenue slide



21 September 2006 — Memphis (TN): FedEx Kinko’s has reported a 3 percent fall in Q1 revenue to $504 million from $517 million a year earlier.


The company attributes the fall to lower copy product revenues caused by decreased demand and a continued competitive pricing environment for the services.


Operating income for the quarter was down 38 percent to $10 million compared to $16 million a year ago.


The company also posted Q1 operating margin of 2 percent, lower than the 3.1 percent margin recorded in the same quarter last year.


The operating margin decline was primarily due to revenue decline, services enhancement costs and network expansion initiatives.


During the quarter, Kinko’s opened 31 of its planned 200 new smaller format stores that will double the company’s OP offering.