Company Reports

High revenue concentration in Bread’s retail credit card business means the bank faces the persistent risk of losing major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread, as the firm lacks a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

High revenue concentration in Bread’s retail credit card business means the bank faces the persistent risk of losing major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Bread Financial reported second-quarter diluted earnings per share of $3.55 as revenue increased 7% year over year and adjusted pretax preprovision earnings grew 11%. The company's return on equity remained strong at 17.1%.

High revenue concentration in Bread’s retail credit card business means the bank faces the persistent risk of losing major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Bread reported a strong start to 2026 with higher net interest income and lower credit costs. Net revenue rose 5% from last year to $1.02 billion. Thanks to operating leverage and lower share count, diluted earnings per share rose 50% to $4.15, which translates to a 21.2% return on equity.

High revenue concentration in Bread’s retail credit card business means the bank faces the persistent risk of losing major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

High revenue concentration in Bread’s retail credit card business means the bank faces the persistent risk of losing major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Bread reported decent fourth-quarter 2025 earnings with diluted earnings per share coming in at $1.16, up from a depressed $0.16 the previous year. That said, these results translate into a return on tangible equity of 8%, well below the firm's historical average.

On Jan. 9 President Donald Trump called for a temporary 10% cap on credit card interest rates, effective Jan. 20. Consumer finance shares are trading sharply lower in response.

After the sale of Epsilon in 2019 and spinoff of LoyaltyOne in 2021, Bread Financial is solely a consumer credit company; its private-label credit card and buy now/pay later businesses are its only two product lines. However, Bread’s retail credit card business is under pressure as it continues to lose major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Bread reported good third-quarter results thanks to lower credit costs and a strong net interest margin. Net revenue declined 1.2% from last year but rose 4.5% from last quarter. Adjusted earnings per share rose to $4.02 from $1.84 last year, translating to a return on equity of 24.8%.

Bread reported solid second-quarter results thanks to lower credit losses. Net revenue fell 1% from last year to $929 million, while diluted EPS rose 11% to $2.94, inclusive of $0.21 worth of debt repurchase costs. These results translate to a return on tangible common equity of 22.7%.

After the sale of Epsilon in 2019 and spinoff of LoyaltyOne in 2021, Bread Financial is solely a consumer credit company; its private-label credit card and buy now/pay later businesses are its only two product lines. However, Bread’s retail credit card business is under pressure as it continues to lose major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Bread reported decent first-quarter earnings, despite net revenue declining 2% year over year to $970 million. Lower net charge-offs and noninterest expenses lifted diluted earnings per share to $2.86 from $2.73 last year. The firm's results translated to a return on average equity of 17.7%.

After the sale of Epsilon in 2019 and spinoff of LoyaltyOne in 2021, Bread Financial is solely a consumer credit company; its private-label credit card and buy now/pay later businesses are its only two product lines. However, Bread’s retail credit card business is under pressure as it continues to lose major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

After the sale of Epsilon in 2019 and spinoff of LoyaltyOne in 2021, Bread Financial is solely a consumer credit company; its private-label credit card and buy now/pay later businesses are its only two product lines. However, Bread’s retail credit card business is under pressure as it continues to lose major partners, with Wayfair and Meijer going to Citi in 2020 and BJ's Wholesale Club to Capital One in 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.

Declining loan balances and net interest margin compression drove Bread's revenue down 9% from last year to $926 million. Earnings per share also declined to $0.14, or $0.40 when adjusted for debt repurchase costs, from $0.87.

No-moat-rated Bread Financial reported third-quarter results that were in line with our expectations once adjusted for one-time expenses. Net revenue decreased 5% to $983 million. GAAP diluted earnings per share decreased to $0.05 from $3.42 last year, but that includes a $91 million expense from the repurchase of convertible debt; adjusted earnings per share came in at $1.83. As we incorporate these results, we do not plan to materially alter our $48 fair value estimate. We see the shares as roughly fairly valued.

Net charge-offs for the credit card issuers have risen significantly so far in 2024, continuing an ongoing trend from 2023. Questions about credit conditions have become a repeated feature of conversations with management teams, and many have focused on the topic as a lens into the financial health of the United States consumer.

After the sale of Epsilon in 2019 and spinoff of LoyaltyOne in 2021, Bread Financial is now solely a consumer credit company, with its private-label credit cards and buy now/pay later businesses its only two product lines. However, Bread’s retail credit card business is under pressure as it continues to lose major partners, losing Wayfair and Meijer to Citi in 2020 and BJ's Wholesale Club to Capital One at the start of 2022. We see retail partner loss as an ongoing threat to Bread as the firm does not have a competitive advantage that would give it an edge in retaining partnerships during contract renewal negotiations.