American Express Keeps Saying the Affluent Consumer Is Fine. Should Investors Trust It?
It seems suspiciously odd, given the apparent depth and breadth of current economic challenges. Just look at the rest of the data.
American Express Keeps Saying the Affluent Consumer Is Fine. Should Investors Trust It?
Overview
High-net-worth households are holding up in an inflation-riddled environment that's making life difficult for everyone else.
That's the big takeaway from American Express' (NYSE: AXP) most recent quarterly earnings conference call, anyway. Without outright saying it, during the call, CFO Christophe Le Caillec commented: "We expect card fee growth to pick up as the year progresses as we see the impact from the Platinum refresh, exiting the year in the high teens." He then added: "Importantly, about one‑fourth of the overall U.S. consumer Platinum portfolio has been billed for the higher annual fee, and we have seen no change to our very high retention rates relative to pre‑refresh."
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Originally published at www.fool.com.
