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American Express Co. said it’s planning to increase spending on marketing even as billings growth on the company’s credit cards slowed in the second quarter.
Shares of the payments giant fell the most in nine months after the company said it now expects marketing expenses to be about $6 billion for the year, or about 15% higher than they were in 2023.
“As we look out there in the marketplace, we think the opportunity to acquire new cardholders that meet our requirements is still very, very strong,” Chief Executive Officer Steve Squeri said in an interview Friday. When it comes to consumers’ spending, “where you see a little bit of softness — just a little bit — is some of the discretionary spending around travel.”
Amex is leaning in to marketing with the hope of adding more customers even as a growing chorus of bank executives have warned that spending on credit cards has slowed in recent months and write-offs across the industry have increased. But the company is known for its tight underwriting and recently fared the best of its peers in the Federal Reserve’s annual stress tests, which mimic a hypothetical recession.
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