Card delinquencies are occurring faster than Macy's expected.
Macy’s on Tuesday reported a difficult quarter, with comparable-store sales at owned stores sliding 8%, and its earnings per share when adjusted for a pension shift falling 74%.
“While we had expected delinquencies to rise as part of our normalizing credit environment, the speed at which the increase occurred for us and the broader credit card industry since our first quarter earnings call was faster than planned. This negatively impacted second quarter results and led to an increase in the portfolio’s bad debt outlook,” Mitchell said, according to a transcript from S&P Global Market Intelligence.
Mitchell suggested more bad news is in store. “The one metric we find quite interesting is the debt service ratio, which we leverage as a proxy for the consumer’s ability to pay debt using their disposable income — personal income,” he said.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Macy’s Is Downbeat on Spending as Credit-Card Delinquencies RiseThe retailer said it is continuing its 'cautious approach on the consumer,' citing continuing economic pressures, and reaffirmed its annual sales and...
Weiterlesen »
Can You Pay a Credit Card with a Credit Card?This isn’t in credit card companies best interest—or yours. But there is an alternative.
Weiterlesen »
Macy's second quarter adjusted profit tops estimates amid clearance markdowns By Investing.comMacy's second quarter adjusted profit tops estimates amid clearance markdowns
Weiterlesen »
Macy's quarterly profit drops on higher discountsMacy's posted a drop in quarterly profit on Tuesday, dragged down by heavy discounting and higher promotions to clear spring and early summer merchandise.
Weiterlesen »
Lowe's, Zoom, Microsoft rise premarket; Macy's, Dick's Sporting Goods fall By Investing.comLowe's, Zoom, Microsoft rise premarket; Macy's, Dick's Sporting Goods fall
Weiterlesen »
Stocks making the biggest moves premarket: Dick's Sporting Goods, Fabrinet, Macy's, AppLovin and moreThese are the stocks posting the largest moves in early trading.
Weiterlesen »