FedEx reported a sharp decline in profits for its first quarter, driven by weakened demand for premium delivery services. This led the company to lower its annual revenue forecast and see a significant drop in share price. The decline is attributed to a shift in consumer preferences towards cheaper delivery options, impacting both FedEx and its competitor, UPS. Despite the challenges, FedEx remains optimistic about its long-term restructuring plans, aiming to improve efficiency and cut costs.