Competitive PressuresA much larger fall-off in credit sales at Bread compared to its peers, combined with rising BNPL competition, threatens the company's value proposition to retailers.
Consumer SentimentManagement continues to communicate the most bearish consumer sentiment outlook in the coverage universe, with a negative outlook and stress from persistent inflation and high interest rates.
Regulatory RisksBFH expects an October 2024 late fee rule implementation to reduce 4Q24 total revenue by approximately 20%, net of mitigation.