NEW YORK (TheStreet) -- Shares of United Parcel Service (UPS) closed down 0.34% to $106.47 after CEO David Abney said that closer collaboration with major retailers should bring a smooth holiday season, but added that UPS would charge customers more or even refuse packages if last-minute sales by a major customer threaten the company's system, Reuters reports.
"With the changes we've made, I feel very comfortable about peak (season) this year," Abney told Reuters.
Abney said the company's brick-and-mortar and e-commerce retail customers are holding "Black Friday" sales earlier than normal this year and that UPS believes it is part of an effort by retailers to find ways to smooth out the pre-Christmas online ordering bulge, Reuters added.
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"If we see going on into future years that there's going to be additional peak cost because of this last-minute surge, we would certainly look to address that through revenue management," Abney said.
Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."