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Shopify weathering softening consumer spending with diversity of merchants: president

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Shopify Inc.’s president has heard retailers talking about softening consumer spending but feels his company is weathering the storm well because of the diversity of its merchants.

“Our merchants do seem to be outperforming and doing better than others,” Harley Finkelstein told analysts on a Wednesday earnings call.

“I think a big part of the reason that we are not seeing the same thing that others might is because we simply have merchants across a ton of verticals and across a ton of geographies.”

The Ottawa-based e-commerce software company caters to both small businesses and multi-national giants. It’s recently attracted the likes of burgeoning brands including jeweler Mejuri and apparel company Evereve, along with household names such as Toys “R” Us, Barnes & Noble and Casper.

The bevy of brands have helped Shopify cope with lower consumer spending caused by high inflation and elevated borrowing rates in many of its key markets.

Several brands have said they expect the softening to continue as the year progresses, but Shopify’s chief financial officer Jeff Hoffmeister said on the same call as Finkelstein that their company hasn’t seen “any significant deterioration or improvement” during its second quarter.

That quarter delivered a net income of US$171 million or 13 cents US per diluted share, Shopify said Wednesday.

The result for the company, which keeps its books in U.S. dollars, compared with a net loss of US$1.31 billion or US$1.02 per diluted share a year earlier when the company recorded a US$1.34-billion charge on the sale of its logistics business.

Revenue for the quarter ended June 30 totalled US$2.05 billion, up from US$1.69 billion in the same quarter last year.

The increase came as subscription solutions revenue reached US$563 million, up from US$444 million a year ago, while merchant solutions revenue amounted to US$1.48 billion, up from US$1.25 billion.

“We are at our strongest yet,” Finkelstein told analysts just after the results were released.

As he spoke, the company’s shares on the Toronto Stock Exchange soared almost 24 per cent, or $17.59, to $92.15.

Meanwhile, TD Securities analyst Daniel Chan saw the quarter as being a reflection of “Shopify’s e-commerce leadership and continued ability to gain market share,” especially because its results were strong “despite a mixed consumer spend environment,” he said in a note to clients.

He added that parts of the company’s guidance were “better than expected.”

In its outlook for its third quarter, Shopify said it expects revenue to grow at a low-to-mid-twenties percentage rate on a year-over-year basis.

During that quarter, Hoffmeister said the company plans to hire for some key roles in its sales and research and development divisions. He expects the year to end with “minimal” headcount growth. He said Shopify had 8,300 employees at the end of 2023.

Shopify laid off 20 per cent of its staff in May 2023 in a move meant to help it more intensely focus on its main operations. In July 2022, it also cut about 1,000 workers.

This report by The Canadian Press was first published Aug. 7, 2024.

Companies in this story: (TSX:SHOP)

The Canadian Press. All rights reserved.

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Fledgling Northern Super League adds four to front office ahead of April kickoff

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The Northern Super League has fleshed out its front office with four appointments.

Jose Maria Celestino da Costa was named vice-president and head of soccer operations while Marianne Brooks was appointed vice-president of partnerships, Kelly Shouldice as vice-president of brand and content and Joyce Sou as vice-president of finance and business operations.

The new six-team women’s pro league is set to kick off in April.

“Their unique expertise and leadership are crucial as we lay the foundation for not just a successful league in Canada, but one that stands among the top sports leagues in the world,” NSL president Christina Litz said in a statement. “By investing in top-tier talent and infrastructure, the Northern Super League is committed to creating a league that will elevate the game and set new standards for women’s professional soccer globally.”

Da Costa will oversee all on-field matters, including officiating. His resume includes stints with Estoril Praia, a men’s first-division team in Portugal, and the Portuguese Soccer Federation, where he helped develop the Portuguese women’s league.

Brooks spent a decade with Canucks Sports & Entertainment, working in “partnership sales and retention efforts” for the Vancouver Canucks, Vancouver Warriors, and Rogers Arena. Most recently, she served as senior director of account management at StellarAlgo, a software company that helps pro sports teams connect with their fans

Shouldice has worked for Corus Entertainment, the Canadian Football League, and most recently as vice-president of Content and Communications at True North Sports & Entertainment, where she managed original content as well as business and hockey communications.

Sou, who was involved in the league’s initial launch, will oversee financial planning, analysis and the league’s expansion strategy in her new role.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.



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RCMP warn of armed robbery suspects west of Edmonton

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MAYERTHORPE, Alta. – An emergency alert has been issued in an area west of Edmonton for two armed men.

RCMP say the men are on foot after a robbery.

They say people in the area of Mayerthorpe should not open their doors to strangers or pick up hitchhikers.

They say the suspects are dangerous and should not be approached.

One man is described as white, about 30 years-old, five feet 11 inches tall, 205 pounds with dark hair and dark eyes, who was last seen wearing a cowboy hat and black sweater.

The other man is six feet tall, about 220 pounds, with brown hair and blue eyes, wearing a black flat brim hat with red letters.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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The #1 Skill I Look For When Hiring

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File this column under “for what it’s worth.”

“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.

I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.

 

Why?

 

Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.

 

Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.

 

With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.

 

When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.

 

The way someone writes reveals how they think.

 

  • Clear writing = Clear thinking
  • Structured paragraphs = Structured mind
  • Impactful sentences = Impactful ideas

 

Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”

 

Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:

 

  • Emails that don’t get deleted immediately and are responded to
  • Simple, concise, and unambiguous instructions
  • Pitches that are likely to get read
  • Social media content that stops thumbs
  • Human-sounding website copy
  • Persuasively, while attuned to the reader’s possible sensitivities

 

Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.

 

It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.

 

Why?

 

Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.

 

Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.

So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.

Two rules guide my writing:

 

  • Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
  • Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.

 

Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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