TGT - this sucker headed to our favorite number?
LT debt increasing every Q
$9,735,000,000 $8,943,000,000 $8,088,000,000 $8,711,000,000
sales are down
Consumer credit starting to rot.
money.cnn.com
Foley thinks Target's (TGT: Research, Estimates) relatively recent introduction of its Visa card program is troubling. The retailer, which garners about 17 percent of its operating income from credit-card operations, saw charge-offs (debt that's been written off) spike by 2.03 percentage points to 8.1 percent in September.
"Our delinquency rates and writeoffs are well within our expectations," said a Target spokeswoman. "We feel that we are very conservative and prudent."
Circuit City's credit-card operation saw delinquencies (payments past due) climb 0.3 percentage points to 8 percent and charge-offs increase 0.6 percentage points to 12.5 percent in September -- a signal that could "mark the beginning of worsening trends" at its finance arm, observed Prudential Securities analyst Mark Rowen. Circuit City (CC: Research, Estimates) did not comment for this article.
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