Shares of Synchrony Financial SYF, +0.82% fell 0.7% in premarket trading Tuesday, after the consumer financial services company disclosed that it will not renew its financing partnership with apparel retailer Gap Inc. GPS, +0.99% when it expires in April 2022. Gap’s stock was still inactive ahead of the open. Synchrony said the partnership with Gap represented about 5% of its loan receivables. “Synchrony was unable to reach contractual and economic terms with Gap that made sense for our company and our shareholders,” Synchrony stated in an 8-K filing with the Securities and Exchange Commission. The company expects to recognize a gain from the sale of the portfolio in the second quarter of 2022, and plans to use about $1 billion of capital to buy back stock and to invest in higher growth programs. Synchrony’s stock has rallied 24.3% year to date through Monday, while Gap shares have soared 62.3% and the S&P 500 SPX, -0.02% has advanced 9.9%.
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