Here are five things you need to know this morning
Canadian economy adds 18,000 jobs
Canada added 18,000 jobs in June, pushing the unemployment rate down to 6.5 per cent. However, the headline improvement masks some underlying weakness, as nearly all the gains came in part-time work. Additionally, goods-producing sectors shed 43,700 jobs, led by losses in the manufacturing sector.
Aritzia revenue and profit soar
Vancouver-based Aritzia’s revenue grew 43 per cent in its first quarter, beating analyst estimates. Its net income per diluted share jumped to 99 cents per share, compared to 36 cents per diluted share a year before. The clothing retailer lifted its full-year revenue outlook and expects expansion, despite tariff pressure. It says robust demand for its spring and summer products fuelled its performance. Sales at stores open jumped by 35 per cent year over year.
MTY Food closing locations
Restaurant franchisor and operator MTY Food Group’s second-quarter profit and revenue fell compared to the same quarter last year, as did same-store sales. The company says it plans to close 68 underperforming locations over the next nine months. CEO Eric Lefebvre says the results “reflect continued pressure on consumer spending and a challenging operating environment.” MTY put itself up for sale last November, and says that process is still “ongoing.” MTY owns Thai Express, Manchu Wok, and Mr. Sub, as well as other brands.
SK Hynix set for U.S. debut
Investors in North America will have a new way of buying into the boom in computer memory. SK Hynix, the second most valuable company in South Korea behind Samsung, is slated to begin trading on the Nasdaq today. The market debut, coinciding with the company’s hefty expansion plans for the U.S., comes after a more than seven-fold increase in its stock price over the past year, a rally that’s lifted SK Hynix’s market cap to about US$1 trillion. The company raised US$26.5 billion in the offering – the largest-ever foreign debut on U.S. markets.
Volkswagen cutting model lineup
Volkswagen plans to cut its model lineup by as much as half, as part of a savings push. The announcement followed a showdown at Thursday’s supervisory board meeting, where CEO Oliver Blume was expected to push to double job cuts to 100,000 and close four German plants. Volkswagen offers roughly 150 model lines across its brands like Porsche, Audi, Skoda and commercial vehicles. Analysts say the product announcement may be the first step as management and the workforce negotiate closures and layoffs.
