UPS earnings: Package volume hurts revenue

Delivery trucks parked outside a UPS hub in the Brooklyn borough of New York, US, on Friday, April 21. Photo: Paul Frangipane/Bloomberg via Getty Images

Slumping package volume triggered a decline in UPS revenue as the shipping service felt the effects of slowing retail spending.

Driving the news: UPS said Tuesday that its domestic package volume was down 5.4% in the first quarter, compared with a year earlier — worse than Goldman Sachs' estimate of a 3.3% decline.

What they're saying: "Volume was higher than we expected in January, close to our plan in February and then moved significantly lower than our plan in March, as retail sales contracted, and we saw a shift in consumer spending," CEO Carol Tome said on an earnings call.

The impact: UPS shares closed down 10.1% Tuesday.

What's next: UPS recently began contract renewal negotiations with the International Brotherhood of Teamsters, whose deal expires in July.