Alliance Data Systems Corp. reported delinquencies and chargeoffs fell in June from a year earlier for the private-label cards it manages.
The company operates loyalty-program and private-label credit cards, as it oversees accounts for retailers such as Victoria's Secret, Ann Taylor and Pottery Barn. Chargeoffs fell to 4.7% in June, from 6.9% in the year-ago period. For the quarter ended in June, chargeoffs were 4.9%, compared with 7.2% last year.
The percentage of accounts more than 30 days delinquent was 3.9% for the period ended June 30, flat with last month but down from 4.5% last year.
Alliance Data has seen its earnings improve as credit quality and credit card sales have jumped. The company in April reported a 33% increase in first quarter earnings, as it watched revenue grow at double-digit rates across its business. The company had to set aside less money to cover bad loans.
In June, Alliance Data inked a deal to acquire Bon-Ton Stores card portfolio.