Sent Items #215: The Final Countdown

Welcome to the week before Christmas edition of Sent Items. I might fire off one more before the end of the year, but no promises.

Happy 8th night of Hanukkah/Chanukkah/however you spell it. Here was our house last night for the 7th night:

Also Happy Birthday to Henry who turned 5 on Thursday.

We are in the absolute final stretch of Peak 2025. But while you were busy playing Tetris with outgoing pallets, the industry dropped some massive news. FedEx posted earnings that actually made investors smile (a holiday miracle?), Costco is fighting tariffs with pumpkin pie, and one Saks stylist allegedly decided to give himself a $400,000 "bonus" via the returns counter.

Before we get into the news, one final unboxing for the year:

Random fun fact before we move onto the headlines: Barnes & Noble has opened over 50 stores in 2025. Let that sink in.

— Matt

Now onto the top headlines…

FedEx Q2 Earnings Beat: Revenue Hits $23.5B FedEx delivered an early holiday gift to investors this week, reporting Q2 2026 earnings that handily beat Wall Street expectations. Revenue climbed 6.8% YoY to $23.5 billion, while adjusted EPS hit $4.82 (crushing the $4.11 forecast). CEO Raj Subramaniam cited the success of their "Network 2.0" transformation for the efficiency gains. The company is so confident in its momentum that it raised its full-year earnings guidance, signaling that their cost-cutting measures are finally paying real dividends. Source: Investing.com

UPS Deploys AI to Fight the "$76B Returns Problem" UPS-owned reverse logistics firm Happy Returns is officially testing a new AI tool called "Return Vision" to spot fraudulent returns before they are processed. With nearly 1 in 10 returns now considered fraudulent (think: sending back an old item or an empty box), this tech uses computer vision to flag suspicious items at the point of induction. Major brands are piloting the system to combat what has become a $76.5 billion industry-wide headache. Source: Reuters

Brad Jacobs Steps Down: The End of an Era at XPO & GXO Logistics titan Brad Jacobs announced he is stepping down as chairman of both XPO and GXO to focus entirely on his new building products venture, QXO. Jacobs, who built both companies into multi-billion dollar juggernauts through aggressive M&A, leaves behind a legacy that defined modern contract logistics. He stated, "XPO and GXO are in excellent shape," as he hands the reins to new leadership to chase his next "$50 billion revenue leader" dream. Source: Transport Topics

In light of Brad Jacobs stepping down from XPO and GXO, this interview is a great look back at his playbook for building massive logistics companies and what he values in leadership. Brad Jacobs on building billion dollar companies ...

Chinese Exports "Flood" Europe as US Tariffs Hit A new "China Shock" is hitting European ports. As the US tightens tariffs and closes "de minimis" loopholes, Chinese exporters are aggressively redirecting goods to the EU. Reports from Statista and Daily Sabah confirm a surge in cheap Chinese imports from EVs to small parcels flooding European markets, prompting EU leaders to consider their own protective measures. The trade war isn't disappearing; it's just moving geographies. Source: Statista

Costco CFO: "Fewer SKUs, More Pies" Costco is taking a pragmatic approach to the 2025 tariff landscape. CFO Gary Millerchip told analysts that Costco has slightly reduced its holiday product assortment (fewer types of toys and home decor) to avoid tariff-heavy categories. However, they are offsetting this by leaning into domestic goods and high-velocity items they control, specifically setting a record by selling 4.5 million pies in the three days before Thanksgiving. That’s more than 7,000 per store (or warehouse, as they call them). Costco's U.S. food courts set a daily record on Halloween, selling 358,000 whole pizzas, a 31% jump from last year. In addition, Black Friday was a record-breaking day for Costco's U.S. e-commerce business, generating over $250 million in non-food orders. Tariffs may take our variety, but they will never take our pumpkin pie. Source: MarketWatch

The $400,000 Return Scam at Saks In a story that sounds like the plot of a Netflix drama, a prominent Saks Fifth Avenue stylist in Boston has been accused of running a massive $400,000 returns scam. Suhail Kwatra allegedly processed fraudulent returns for luxury items that were never actually brought back, funneling the refunds onto gift cards for his own use. It’s a stark reminder of why retailers (and UPS with their new AI tool) are cracking down so hard on reverse logistics fraud this year. Source: WSJ

USPS to Open "Last Mile" Network to All Shippers In a massive strategic shift announced Wednesday, the USPS plans to open its "last-mile" delivery network to all shippers, not just Amazon and UPS, via a new bidding process starting in early 2026. This move allows 3PLs and retailers to bypass upstream sorting and inject packages directly into local Delivery Destination Units (DDUs) for same-day or next-day delivery. It’s a bold play to fill the volume gap left by Amazon's gradual exit. Source: Transport Topics

Have a great Christmas week and holiday!

- Matt

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