Bank Behind J.C. Penney, Gap Cards Hit by Spending Decline
- Synchrony ‘will navigate this crisis successfully,’ CEO says
- Results show how dramatically consumers have pulled back
A closed J.C. Penney Co. store in Mt. Juliet, Tennessee, U.S., on April 16.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
The company behind the credit cards for J.C. Penney Co., Gap Inc. and American Eagle Outfitters Inc. said that the nationwide shutdowns tied to the coronavirus pandemic have led to a sharp decline in spending on the firm’s cards.
Synchrony Financial, the largest U.S. provider of store cards, abandoned its full-year guidance for metrics including loan growth and net charge-offs following the spending decline in the last two weeks of March, when retailers across the country were forced to shutter their stores as part of the efforts to slow the spread of the deadly virus.