Here are five things you need to know this morning:
Sales increase at Sobeys owner Empire: Empire Company reported mixed results before the bell this morning, with sales inching up 0.3 per cent to $7.78 billion, slightly below expectations, but net earnings came in at 73 cents a share. That’s better than last year when the figure was 71 cents a share and better than the 67 cents that analysts were expecting. Same store sales grew by 1.8 per cent. That’s down from two per cent last year but better than the 1.2 per cent growth that analysts were expecting.
Let them freeze in the dark? The trade war of words between Canada and the U.S. continues to heat up, with Ontario Premier Doug Ford threatening yesterday to cut off electricity exports to New York, Michigan and Wisconsin if Donald Trump follows through on his pledge to slap 25 per cent tariffs on Canadian imports. Leaving aside the feasibility of the idea, it’s hard to imagine who would even come out ahead under such a scenario. But it shows just how unprecedented the normally steady and cordial relations between the two countries have gotten in the past few weeks.
Body Shop Canada assets sold to retail entrepreneur: The Body Shop Canada is set to be sold to a company led by the co-founder of frozen yogurt chain Yogen Fruz. The cosmetics and skincare retailer says in court filings that an agreement it signed earlier this month will see it sell its assets to Serruya Private Equity Inc. The firm is named after Michael Serruya, who also owns stakes in retail food chains like St Louis Bar and Grill, Second Cup Coffee, Swensen’s and Yogurty’s. A price tag for the assets has not been disclosed but Serruya is assuming all the liabilities too, including up to $12.5 million owed to various creditors. The Body Shop has been in business in Canada for 44 years and currently has 72 locations across the country.
Bausch & Lomb kicks tires on sale: We will be watching shares of Bausch & Lomb today. The Ontario-based maker of contact lenses and other eye-care products has confirmed that it’s exploring the potential sale of the company. The stock surged back in September on reports of a possible sale, but they fell back more than 14 per cent yesterday on a report that Blackstone was pulling out of a joint takeover bid for the company.
Profit at Transat takes off: Montreal leisure-travel company Transat A.T. posted an unexpected profit in its latest quarter, helped by a settlement in a dispute with aircraft engine maker Pratt & Whitney. Transat received more than $33 million to make up for the cost of the grounded planes. Transat’s results were also boosted by higher bookings and lower fuel costs.
