Serial Acquirers Market Update: Descartes Systems Group Tumbles 12% on Earnings and Two of Canada’s Oldest Companies Merge
Descartes Systems Group Reports Q1 2026 Earnings and Canadian Tire Secures Hudson’s Bay Brand Assets Amid Retail Shakeup
Descartes Systems Group: A Temporary Dip or a Sign of Slowing Momentum?
Last week, Descartes Systems Group, a serial acquirer in the logistics and supply chain software space, announced its fiscal 2026 first quarter results, causing the share price to tumble 12%. Although the results were mostly in-line with analyst expectations, with only a small revenue miss, investor sentiment appears to have been rattled by broader global trade uncertainty.
Despite headwinds from tariffs and a challenging macroeconomic backdrop, Descartes still posted solid growth with quarterly revenue and adjusted EBITDA growing 12% year-over-year. On the company’s earnings call, management emphasized that the current level of uncertainty is more severe than what they’ve encountered in past downturns. Nevertheless, Descartes is taking proactive steps to cut costs and consolidate market opportunities to strengthen its position amid unpredictable market conditions.
Following the quarterly results, analysts have maintained their ratings, although a few have lowered their price targets. Some cite the company’s growth strategy, active M&A pipeline, and diverse portfolio as reasons to be cautiously optimistic about the company.
Zooming out to the long-term, there’s no denying that Descartes has been a strong compounder. Over the past five years, revenue has increased by 102% while EBITDA has grown by 161%, causing share price to appreciate by 186%. For long-term investors who believe today’s trade-related challenges are just a temporary blip on the radar, this recent pullback may be a great price to buy some shares.
Hudson’s Bay Legacy Lives on Through Canadian Tire
A symbolic passing of the torch took place last week after courts approved Canadian Tire’s $30-million acquisition of Hudson’s Bay’s intellectual property. Hudson’s Bay—Canada’s older retailer—was established in 1670, and Canadian Tire was incorporated in 1927. This acquisition is a nostalgic moment for Canadians who remember the deep roots these companies hold.
Hudson’s Bay had initially sought a deal to keep a portion of its stores in operation. However, it ultimately pivoted after failing to find a buyer. This news comes after Hudson’s Bay filed for creditor protection and closed all of its 96 stores, highlighting the ongoing shift away from traditional department stores in Canada’s retail market.
For Canadians who hold fond memories of the brand, this acquisition offers a possibility for revival of beloved elements, as Canadian Tire now owns and can preserve Hudson’s Bay’s iconic names, trademarks, logos, slogans, and private-label brands. This creates the opportunity to repurpose those assets in future product lines and marketing campaigns while keeping them under Canadian ownership.
Core elements of Hudson’s Bay identity, including slogans such as “Bay Days,” “The Official Store of Christmas,” and “It’s hard not to think of The Bay” are now under the Canadian Tire umbrella. Also included are the rights to the historic point blanket design, dating back to the 18th-century fur trade—a product that saw renewed interest as a collector’s item following Hudson’s Bay’s creditor filing.
This sale followed a competitive sales process, where Reflect Advisors invited 407 individuals and firms to bid on Hudson’s Bay’s assets, resulting in 17 bids, 13 of which were for Hudson’s Bay’s IP alone. Ultimately, this acquisition was a necessary outcome that positions Hudson’s Bay to maintain its legacy through another iconic Canadian retailer.
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