HEADLINES

GDP Edged Up After Sharp Contraction in October

Canada's economy is on track to shrink slightly in the final quarter of 2025, with the steepest contraction in almost three years notched in October and early signs pointing to only a modest recovery last month.

Gross domestic product decreased 0.3% in October from the month before, Statistics Canada said. That reverses the 0.2% advance in September and marks the biggest step down for the economy since the end of 2022.

The national data agency's advance estimate for November indicates growth of 0.1%.

GDP Points to Flat Activity So Far for 4Q Economy Is Looking Precarious

Bank of Canada Officials Unsure on Future Direction of Rates, Minutes Say

Senior Bank of Canada policymakers were reluctant to predict whether the next change in interest rates would be up or down, citing volatile data and elevated trade-policy uncertainty, according to minutes.

Central bank officials kept their main interest rate unchanged at 2.25% on Dec. 10, saying it was at the right level to keep inflation near 2% and offer support to growth. The minutes, which summarize deliberations ahead of the policy announcement, indicate officials were somewhat leery of data showing improvements in economic activity, and cognizant of the elevated risk posed by trade-policy uncertainty on business investment and hiring.

After agreeing to hold the policy rate steady, senior officials "discussed whether it was more likely that their next move would be to raise or lower the policy interest rate," according to the minutes. Given a high level of uncertainty, "it was difficult to predict when and in which direction the next change in the policy rate would be," the minutes said.

Dye & Durham Delays Filings for Fiscal 2025, First Quarter

Dye & Durham will need more time to file its financial statements for both fiscal year 2025 and the first quarter, and will seek to push back its annual general meeting.

Shares dropped 10.1% to settle at C$4.17.

The embattled Canadian legal--technology and software company said Tuesday its auditor needs extra time to review certain past accounting practices related to how revenue was recorded under previous management.

The company said its current management believes any corrections from earlier years would be minor, but the auditor has to complete its review before providing an opinion on the annual results.

Earlier on Tuesday, Canada's Commissioner of Competition discontinued its inquiry into alleged conduct at the company, and confirmed that no further investigatory steps are contemplated at this time.

Strathcona Shares Fall on C$10 Special Distribution, Debt-Facility Expansion

Strathcona Resources says it paid out its special distribution to shareholders, increased its debt facility and sold off all its publicly traded investments.

Shares sank 25.9%, settling at C$29.00.

The Canadian oil-and-gas producer said late Monday that it completed its special distribution of C$10 a share by way of a plan of arrangement and expects shareholders to receive their distribution after Dec. 22.

The company has also redeemed all of its outstanding US$500 million bonds holding a rate of 6.875% due next year and has expanded its credit facility to C$3.49 billion from C$3.255 billion.

Wholesale Sales Estimated to Have Edged Up 0.1% in November

Canadian wholesale sales look to have risen modestly in November, building on gains over the previous two months.

Statistics Canada said an early tally of wholesale receipts points to a 0.1% increase in sales from the month before.

The increase reflected a lift in sales of machinery, equipment and supplies, the data agency said.

Goodman, CPPIB Launch A$14 Billion European Data Center Partnership

Goodman Group said it will join with Canada Pension Plan Investment Board to develop data centers in Europe, broadening an alliance that has seen the pair invest in real estate world-wide.

Goodman said the new partnership's value would be 14 billion Australian dollars, equivalent to $9.26 billion. It said the partnership would involve an initial capital commitment of A$3.9 billion to develop a portfolio of data-center projects in Frankfurt, Amsterdam and Paris.

The partnership's portfolio comprises four projects totalling 435 megawatts of primary power and 282 MW of IT load. Two of the projects will be in Paris, with construction due to begin by June 30.

TALKING POINT

What Does Lululemon Need: Discipline or Inspiration?

By Jinjoo Lee

What kind of leader does it take to turn around an ailing brand? Lululemon is about to become the next case study.

Activist Elliott Investment Management is betting that it takes a leader with managerial chops. It recently has taken a roughly $1 billion stake in Lululemon and is pushing for Jane Nielsen, a former Ralph Lauren chief financial and operating officer, to take the top job at the athletic apparel company. Lululemon announced two weeks ago that its chief executive officer, Calvin McDonald, would step down.

It is a good entry point for the activist investor. Lululemon's shares look cheap at about 17 times forward earnings, about half its 10-year average. That is quite a bargain for a brand that, for much of the past decade, commanded a multiple higher than sportswear giant Nike and luxury conglomerate LVMH. Even though its operating margins have compressed lately below 20%, the company remains highly profitable with margins that look more like luxury stocks than apparel brands.

Nielsen certainly has a good track record. Retail analysts praise her discipline at Ralph Lauren, where she oversaw a strategy of cutting down the number of products to restore brand focus and prestige. "She was willing to make hard decisions to get smaller to get better," notes Simeon Siegel, equity analyst at Guggenheim Partners. Laurent Vasilescu of BNP Paribas said in a note that the research team used to refer to her as "The Sheriff" during Ralph Lauren's turnaround for her operational discipline. During Nielsen's tenure at Ralph Lauren, the company's shares more than doubled.

Will the same approach work at Lululemon? In some ways, its problems appear similar. Over the past several years, the company has reached beyond its core yoga audience to keep top-line growth going. This inevitably has led to flops, including at-home fitness gadget company Mirror, which has been discontinued, a foray into footwear, an assortment of loungewear that even its own CEO called "stale" and most recently, a head-scratching decision to add Mickey Mouse and NFL logos onto its apparel. A dose of discipline wouldn't hurt.

But perhaps what Lululemon really needs is a fresh pair of creative eyes. The brand has hit the right notes before, even when it seemed like the new products were a reach. The so-called "ABC pants," stretchy work trousers for men, were a hit. So were the line of belt bags that went viral among young consumers.

Sometimes it takes a creative type to revive a brand. Gap is the most recent example: Since its new CEO started two years ago with a focus on reviving the company's design and creative culture, comparable sales quickly returned to growth and its shares have gained 190%. Abercrombie & Fitch is another example, with shares up 10-fold since CEO Fran Horowitz started in 2017. Both leaders have product and design-focused backgrounds.

Of course, a good CEO could still cultivate the right creative culture, whatever his or her background. Even though Lululemon refreshed its creative leadership two years ago, the first products designed by the new creative leader will only hit shelves next spring, making it difficult to assess where the company's design strategy stands. The company has said that it is working to cut the design-to-market timeline.

Business discipline is all well and good. But fashion brands also need a certain intangible pull. Whoever the new CEO is, Lululemon needs a fresh creative strategy.

Write to Jinjoo Lee at [jinjoo.lee@wsj.com]

Expected Major Events for Wednesday

05:00/JPN: Oct Indexes of Business Conditions - Revision

12:00/US: 12/19 MBA Weekly Mortgage Applications Survey

13:30/US: 12/20 Unemployment Insurance Weekly Claims Report - Initial Claims

23:50/JPN: Dec Provisional Trade Statistics for 1st 10 days of Month

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Expected Earnings for Wednesday

Office Properties Income Trust $(OPITS)$ is expected to report for 3Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

December 23, 2025 16:31 ET (21:31 GMT)

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