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Sep 30, 2020
Bread Financial Q3 2020 Earnings Report
Alliance Data reported strong sequential improvement across key financial metrics and made substantial progress executing on strategic initiatives.
Key Takeaways
Alliance Data reported a net income of $133 million, or $2.79 per diluted share, for the third quarter ended September 30, 2020. The company saw a modest recovery in Card Services credit sales and improved revenue from LoyaltyOne. Expense reductions from efficiency programs enabled additional investment in strategic areas.
Card Services credit sales increased 28% sequentially.
LoyaltyOne revenue improved from second quarter levels.
Company-wide expense reductions were driven from ongoing efficiency programs.
The acquisition of Bread is expected to close in the fourth quarter of 2020.
Bread Financial
Bread Financial
Forward Guidance
Alliance Data remains cautiously optimistic on consumer spending and payment trends, with brand partners seeing improved sales led by online retail acceleration. Consumer payment rates have been strong, and credit metrics remain better than expected.
Positive Outlook
- Brand partners are seeing improved sales.
- Online retail is accelerating.
- Consumer payment rates have been strong.
- Credit metrics remain better than expected.
- The company maintains its reserve for loan loss at over 13%.