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Noah Zivitz

Managing Editor, BNN Bloomberg


Tilray has served up another reminder that profit isn’t always a priority in the cannabis sector – and investor patience is starting to wear thin. The Nanaimo, B.C.-based pot producer’s stock is down ~10 per cent in pre-market trading after the company’s second-quarter loss ballooned, even as revenue surged 371 per cent. And CEO Brendan Kennedy is giving no indication he’s about to change course, telling our Bloomberg partners that dwelling on profitability can be “constraining”.


Lots to choose from today. Most notably, new warning signs in the bond market as the U.S. 10-year yield fell below the two-year one. Meanwhile, overnight data from China show that country’s industrial production and retail sales slowed far more sharply than expected in July. Meanwhile, a reminder that Europe’s core is vulnerable as Germany’s GDP contracted in the second quarter. Add it all up, and U.S. futures are pointing to a sharp drop at 930, while all the major European indices are under pressure.


Lots to sift through. Among the names with compelling stories this morning:

-Canada Goose’s expansion beyond parkas is lighting up sales. Fiscal first-quarter revenue jumped 59.1 per cent (including significant gains in the home market and Asia), with CEO Dani Reiss pointing to the success of “relevant lightweight offerings”. Nevertheless, the company’s quarterly losses widened. Watch for Amanda Lang’s interview with Reiss this afternoon.

-If we needed another reminder that Indigo Books & Music is bearing the brunt of Amazonification, check out the retailer’s latest results. Same-store sales down 7.6 per cent alongside a swelling quarterly loss. Indigo pinned its sales erosion to a “strategic shift” away from promotions, while “softer discretionary spending” hit the company’s general merchandise offerings.

-Freshii’s same-store sales fell four per cent in the second quarter. That said, unlike some of the other names on our radar this morning, the fast-food chain managed to post a profit (albeit meager).

-Stelco Holdings’ second-quarter revenue plunged 39 per cent, but the CEO is striking an upbeat tone, saying past headwinds are shifting to tailwinds as demand strengthens and America’s 232 tariffs fall by the wayside.

-Metro’s fiscal third-quarter sales jumped 12.8 per cent, largely thanks to the Jean Coutu takeover; meanwhile, profit fell short of estimates at $0.90/share.


-WeWork’s initial public offering paperwork has been released. The office space provider’s revenue more than doubled to US$1.8 billion last year, while its net loss widened to US$1.9 billion. The company isn’t planning to pay a dividend and proceeds from the IPO are being earmarked for general corporate purposes.

-Onex and WestJet cleared another hurdle yesterday after the Competition Bureau approved their takeover arrangement without any conditions.

-Air Canada says it will launch A220 (ie, the former CSeries) service in the spring on its Montreal-Seattle and Toronto-San Jose routes.


-Notable earnings: Canopy Growth, Canada Goose, Aimia, Metro, Freshii, CAE, Macy's, Cisco Systems

-Notable data: China retail sales and industrial production

-Foreign Affairs Minister Chrystia Freeland addresses Toronto Board of Trade alongside German Foreign Minister Heiko Maas (8:00 a.m. ET; avail at 9:30 a.m. ET)

-13F filing deadline in U.S.

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to