Operator: The next question is from Bruce Chan with Stifel.
Bruce Chan: I don’t know if you’ve really talked about it, but we’ve been hearing that you’ve had some pretty material service improvements, especially at Ground over the last, call it, a year or so and that’s despite the cost savings push. Can you maybe just talk about that a little bit, where are the service levels today, what are the levers that you’re pulling? And then what kind of opportunity do you have to drive core pricing as a result of that?
Brie Carere: John Smith and Scott Ray are crushing it. When we went back and looked at our Q4 the toughest quarter to — I should say, Q4 calendar year, the toughest quarter to deliver awesome service, not only are we faster, I am quite confident, we — on those higher standards, from a delivery service perspective, we also had better reliability. How are they doing this? It’s discipline. It’s day in and day out execution. We look at our service metrics every single morning. We talk about Net Promoter Score every week at our Revenue Management Committee. And to Raj’s coverage, on the integrated leadership team now with the service organization, we absolutely expect to extend that across the entire network, and I just could not be more appreciative of our operators and how well they’re doing.
Raj Subramaniam: Yes, I wanted Brie to answer that question because she holds their feet to the fire every single day. So I’m glad that you heard that answer directly from Brie.
Operator: The next question is from Conor Cunningham with Melius Research.
Conor Cunningham: I was hoping you could talk about the opportunity you see just with the e-commerce return business. You’ve obviously been a big player there. But there’s been a lot of changes in the network. Is that now a larger focus? The reason why I asked, and obviously, there’s been a press report about you reengaging with Amazon. Just any thoughts there would be helpful.
Brie Carere: I think we’ve got the best returns portfolio in the market. When you look at our retail coverage as well as our transportation solution, it is best-in-class. And when we looked at our January numbers, the FedEx Ground returns portfolio did see some healthy growth. You layer that on with the new announcement of our FDX platform, we are going to be the only provider that has not only the physical capabilities but a very comprehensive digital capability. And what do I mean by that? We are going to be able to help all retailers, brands and merchants process their returns on their Web site, manage their exchanges, manage the inventory, integrate their branded tracking and communications to customers. It’s a really powerful offering.
As I mentioned earlier, we started to preview this with some customers. We’ve got some pretty big names in what we’re calling our private preview. And I look forward to sharing more results once we do the full launch later in the fall. I think I’ll stop there. I’m enthusiastic about this…
Raj Subramaniam: I’ll just say this much, when we integrated of these customers, even I can program and there’s no cohort environment I can set up the returns policy. So if I can do that, anyone can do it.
Operator: The next question is from Scott Schneeberger with Oppenheimer.
Scott Schneeberger: It’s basically two questions, one is a follow-up to Bruce’s. Brie, I was hoping if you could kind of give an overview of peak season, kind of takeaways learnings. And then I think we have five less calendar days for the 2024 calendar peak. So just things that you’re going to learn and manage ahead of time as it’s a much more condensed season? And then the second question is for any of you, but just in Ground cost per package, it was down 2% in the fiscal second quarter. And you cited improved first and last mile productivity, flat here in this quarter and offset was higher first and last mile cost. Just curious if there’s anything we should read into there.
