Here are five things you need to know this morning:
Sobeys owner Empire beats: Revenues at grocer Empire Company grew by more than expected last quarter as more cost-conscious shoppers flocked to its discount banner FreshCo. The company, which owns Sobeys, Farm Boy, Foodland, Longo’s and other brands, said revenue in the first three months of its fiscal year came in at $8.14 billion. That’s up from $8.08 billion the previous quarter and far better than the slight decline that analysts were expecting. Same-store sales inched higher, but only barely at 0.5 per cent. Despite the sales surge, profit came in at just over $207 million, down from $261 million a year ago.
Transat misses: Travel company Transat AT reported results before the bell this morning; numbers which missed analyst expectations on most metrics. Revenue came in at $736.2 million, below expectations and down by 1.4 per cent from the same period last year. The company burned through cash during the quarter, with negative free cash flow jumping from $52 million to $168 million. The company says demand for its core product of leisure travel is healthy, but consumers are getting increasingly cost conscious which is squeezing profits.
Insurance bill for Calgary hailstorm comes in at $2.8B: The hailstorm that clobbered the Calgary area last month was the second costliest disaster in Canadian history in terms of insured losses, according to the Insurance Bureau of Canada. While the 2016 Fort McMurray wildfire remains in the top slot, preliminary estimates suggest $2.8 billion worth of insured losses were incurred by the severe thunderstorm system that moved over the area on Aug. 5 that led to flooding and egg-sized hail. More than 130,000 insurance claims have been processed related to the storm.
TD fined US$28M for sharing incorrect customer data: U.S. consumer watchdog the Consumer Financial Protection Bureau has ordered TD Bank to pay US$28 million for sharing “inaccurate, negative information about its customers to consumer reporting companies.” The bank was ordered to pay $7.65 million in redress for sharing inaccurate customer date with credit monitoring firms. Sometimes the data shared contained incorrect errors about personal bankruptcies and credit card delinquencies.
Couche-Tard considering higher 7-Eleven offer price: The will-they-or-won’t-they courtship of Alimentation Couche-Tard and 7-Eleven owner Seven & i Holdings continues, with Bloomberg reporting that TSX-listed Couche-Tard is considering sweetening its takeover offer in a bid to open talks. Couche-Tard offered US$39 billion for the company initially, a number the Japanese firm rejected as too low. The billion-dollar question is how much higher would they be willing to go, and investors seem to think the answer is “at least a little” since Seven & i shares are up seven per cent on the Nikkei today.
