Competitive LandscapeA much larger fall-off in credit sales at Bread compared to its peers raises concerns that its value proposition to retailers is being threatened the most by the secular rise in BNPL competition.
Earnings PerformanceBFH reported 1Q EPS of $2.70, below consensus due to higher-than-forecast credit provision expense.
Regulatory RiskThe biggest bear case is the impact of the CFPB Late Fee rule, which has a disproportionate impact on Bread's revenues versus other cards, implying significant earnings losses.