Stock news for investors: Cineplex and Aritzia post strong results despite industry headwinds

Cineplex says box office revenue for the third quarter totalled $159.5 million, down from $174.9 million a year earlier.

Cineplex chief executive Ellis Jacob says outside a tough comparative last August, with the release of Deadpool & Wolverine, the third-quarter box office performed well compared with a year ago. He added that the success of Taylor Swift, The Official Release Party of A Showgirl last weekend marked a dynamic start to the fourth quarter.

Cineplex has 171 movie theatres and entertainment venues across Canada.

Aritzia’s Q2 profit surge driven by U.S. customer growth, operational changes: CEO

Aritzia Inc. said strength in its U.S. business and moves to avoid higher shipping fees boosted its latest quarterly results. “We’ve seen outstanding new customer growth in the United States, where our base of loyal clients expands quarter after quarter. We’re also super pleased with our second-quarter results in Canada,” Aritzia CEO Jennifer Wong told analysts on a call Thursday. 

The Vancouver-based clothing retailer reported $66.3 million in net income during its second quarter, up from $18.2 million during the same period last year. Its net revenue rose by almost a third to $812.1 million, from $615.7 million during the same period a year earlier. 

The company said its U.S. net revenue rose more than 40 per cent to $486.1 million, accounting for just under 60 per cent of its total revenue. Wong also noted the company launched a new international e-commerce platform in August, which she said was fuelling higher revenue growth. “Its performance in the first six weeks has meaningfully exceeded our expectations, and we’re confident we’ll hit our target to triple sales within two years or less,” she said. 

In August, the U.S. ended what’s known as the de minimis exemption, which had allowed packages worth $800 or less to ship south of the border without duties. “Previously, under the de minimis exemption, we utilized our existing supply chain network in Canada to fulfil a portion of U.S. e-commerce orders. However, the removal of the de-minimis exemption in August required an operational pivot,” Wong said. 

She said the company relocated all U.S. order fulfilment to its Ohio distribution centre, which was expanded last year to more than double its previous size. Wong said the company hired additional staff at the facility. 

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“Despite headwinds from the elimination of the de minimis and higher reciprocal tariff rates on Vietnam and Cambodia, our proactive mitigation strategies and strong revenue growth have positioned us very well,” she said. “As a result, our margin outlook for fiscal 2026 is unchanged at 15.5 to 16.5 per cent. We’re leveraging our agile global supply chain to minimize tariff exposure where possible.” 

Todd Ingledew, Aritzia’s chief financial officer, said that due to the retailer’s year-to-date performance and improved expectations for the second half of the year, it is raising its net revenue forecast for the full fiscal year to between $3.3 billion and $3.5 billion. In its first-quarter report in January, Aritizia had predicted net revenue of $3.1 billion to $3.25 billion. 

For the second quarter, Aritzia’s net income per diluted share came in at 56 cents compared to 16 cents per diluted share a year earlier. On an adjusted basis, Aritzia’s net income amounted to $69.8 million, rising from $24.5 million during the second quarter of last year.

U.S. government to take 10-per-cent stake in Canadian mining company Trilogy Metals

Vancouver-based Trilogy Metals Inc. (TSX:TMQ) says the U.S. government will take a 10% stake in the mineral exploration company, which has mining interests in Alaska that Washington wants to see developed. The U.S. government is spending US$35.6 million on the stake, and has options to increase it further in the future. The transaction remains subject to regulatory and other approvals.

The announcement comes as U.S. President Donald Trump signed an executive order that directs a road to be built in Alaska allowing access to the Ambler mining district, an area rich in copper where Trilogy Metals has an interest through a joint venture. The long-debated Ambler Road project was approved in the first Trump administration, but was later blocked by the Biden administration after an analysis determined the project would threaten caribou and other wildlife and harm Indigenous peoples that rely on hunting and fishing. 

“This proposed partnership with the U.S. Government represents a significant milestone for Trilogy Metals and for the development of a secure, domestic supply of critical minerals for America in Alaska,” Trilogy Metals CEO Tony Giardini said in a news release. The partnership interest underscores the strategic importance of Trilogy’s Upper Kobuk Mineral Projects in supporting U.S. energy, technology, and national security priorities, he said.

U.S. Secretary of the Interior Doug Burgum said the investment will help secure critical mineral supplies. 

“They’re (Trilogy Metals) one of the companies that has mining claims in this area that is a remote wilderness right now, and again making that investment so we can make sure that we’re securing these critical mineral supplies and that ownership in that company will benefit the American people,” he said. 

The U.S. government said last week it is taking a minority stake in Lithium Americas, another Canadian-headquartered company that is developing one of the world’s largest lithium mines in Nevada.

Barrick selling its stake in Tongon mine in deal worth up to US$305M

Barrick Mining Corp. (TSX:ABX) has signed a deal to sell its stake in the Tongon gold mine as well as certain exploration properties in Ivory Coast to the Atlantic Group in an agreement worth up to US$305 million. The miner, which holds an 89.7 per cent stake in Tongon, says proceeds from the sale will be used to strengthen its balance sheet and support returns to its shareholders.

Under the deal, Barrick will receive US$192 million in cash, including a $23 million shareholder loan repayment within six months of closing. The agreement also includes contingent cash payments totalling up to US$113 million payable based on the price of gold over 2.5 years and resource conversions over five years.

Tongon was originally scheduled for closure in 2020, but the life of the mine has been extended through a successful exploration program. The deal is expected to be completed later this year, subject to closing conditions, including approval by the Ivory Coast government.

Cenovus raises takeover offer for MEG Energy and ponies up more stock

Cenovus Energy Inc. (TSX:CVE) is raising its bid for MEG Energy Corp. (TSX:MEG) and ponying up more stock after investors in the target company pushed for a bigger ownership slice of the oilsands giant if the takeover succeeds. The amended offer announced Wednesday—the day before a MEG shareholder vote on the previous bid—values MEG at about $8.6 billion, including assumed debt, up from its earlier value of $7.9 billion. The earlier offer comprised 75 per cent cash and 25 per cent shares. Now, Cenovus is offering a 50-50 split. 

The deadline for MEG shareholders to submit their proxy votes for the previous offer passed on Tuesday morning. It needed two-thirds of shares to be voted in favour in order to be approved. 

“We received support from the majority of MEG’s shareholders for our transaction. However, many MEG shareholders indicated that they would prefer to receive greater Cenovus share consideration, so that they can more fully participate in the upside of the combined company,” Cenovus chief executive Jon McKenzie said in a statement. “We listened to these comments and have changed the consideration under our offer to a maximum of 50 per cent cash and 50 per cent Cenovus shares, while increasing the aggregate purchase price.”

Cole Smead, CEO and portfolio manager at Smead Capital Management, said it appears the initial Cenovus offer was not going to succeed, so it had to be sweetened to “have a chance.” “Who wins these battles is who sees the most value,” said Smead. “And whoever sees the value is always willing to pay the highest price.” 

The Cenovus offer faces a rival all-stock bid from Strathcona Resources Ltd. (TSX:SCR), which already holds a 14.2 per cent interest in MEG. Strathcona is offering 0.8 of a share for each MEG share it doesn’t already own. 

Based on Tuesday’s closing share prices, the Cenovus bid is worth about $29.80 per share on a fully pro-rated basis, while Strathcona’s is worth $29.67. 

The shareholder meeting on the Cenovus bid has been postponed until Oct. 22. The new proxy deadline is now Oct. 20, the same day the Strathcona offer expires. The MEG board urged shareholders to support the Cenovus offer. 

Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has operations in the region. “Since the initial Cenovus transaction was announced, there has been strong recognition of the industrial logic and the synergy potential between MEG and Cenovus,” said MEG chief executive Darlene Gates in a press release Wednesday. “The amending agreement enables MEG shareholders to benefit from greater upside through a significant increase to the proportion of share consideration, while also raising the initial transaction consideration.”

MEG was put in play after Strathcona approached its board with a takeover offer in April. Strathcona was rebuffed and took the offer directly to MEG shareholders weeks later. At the time, the Strathcona offer was made up of cash and stock and worth $28.02 per share. In June, MEG’s board called the bid “opportunistic” and urged shareholders to reject it as it launched a review to find a superior offer. 

Analysts pinpointed Cenovus as the most logical competing bidder. That prediction bore out in August, when MEG announced its board had accepted a friendly takeover offer from Cenovus. Last month, Strathcona amended its offer to be based entirely on stock. Analysts at Desjardins had previously said Cenovus had the financial room to top Strathcona. 

“Following the material sweetening of the acquisition proposal, which Cenovus explicitly stated represents its ‘best and final offer for MEG,’ we expect MEG shareholders to approve the transaction at the upcoming shareholder vote.” Smead said MEG is a “truly great” pure-play oilsands producer that has historically attracted investors optimistic about the future of oil. The most bullish ones were the most disappointed in Cenovus’ initial offer, he said. Smead owns 1.1 million shares in MEG, as well as positions in Cenovus and Strathcona. 

On Wednesday, Smead said it’s “pointless” to entertain the new Cenovus offer until shareholders see what Strathcona counters with. Smead said it’s not a question of whether Strathcona will increase its offer, but how many steps it will take to get it past the finish line. In one scenario, Strathcona could raise its bid, have it countered by Cenovus, and then sweeten it again. Another scenario would be what Smead calls a “bear hug,” which would see Strathcona putting forward “such a price that it kind of knocks people out of their chair … It would overwhelm you.”

Read more about investing:

• Stock news for investors: Spinoffs, acquisitions, and market moves
• What is the price of gold in Canada? And more about gold investing
• Hot stocks: Canada’s top performers in Q3 2025
• Why late-career savers need to be careful with RRSPs

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