This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said.
Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio.
“I think the credit card revenue is an indication of some of the pressures that we’re actually seeing on the consumer,” Mitchell said.
Consumer credit card debt topped $1 trillion during the second quarter for the first time on record, according to the New York Federal Reserve.
More concerningly, new credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to Moody’s Investors Service.
Persons:
New York CNN —, ” Adrian Mitchell, Macy’s, ” Mitchell, ” Macy’s, Locker
Organizations:
New, New York CNN, Citibank, Consumer, New York Federal Reserve, Moody’s Investors Service, Credit
Locations:
New York, Wells