The Retail Service business of
Alliance Data Systems Corporation
), inked a long-term renewal deal with Samuels Jewelers Inc. The
agreement entails it to continue supervising the private label
credit card program for the latter.
ALLIANCE DATA (ADS): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis
GORDMANS STORES (GMAN): Free Stock Analysis
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Samuels Jewelers is a leading retailer of diamonds and fine
The private label credit card program provides adjustable financing
and payment alternatives, special cardholder offers, reminders and
invitations to cardholder-only events, and savings offers for
special occasions. Additionally, Alliance Data will launch itself
into redesigning card marketing collateral and reissue card
plastics in the later part if this year. These encompass
re-branding efforts of Samuels Jewelers' for its Diamond Elite
Samuels Jewelers aims to be a dominant player in mall-based
jewelers' space in the US, banking on customized payment
promotions, multi-channel marketing strategy, and focused credit
To date in the third quarter, Alliance Data has inked a multiyear
Amended and Restated Private Label Credit Card Renewal Agreement
with Stage Stores Inc. (SSI), for private label credit card
services. Further, it inked a multi year agreement to create and
manage private label, co-brand, and commercial credit card programs
for True Value Company. It also entered into a new long-term
agreement with Ideal Image to provide a marketing-driven private
label credit card program and a multi-year renewal agreement with
Gordmans Stores Inc.
), to continue providing the private label credit card
The Private Label Services and Credit segment has continuously
delivered solid numbers. We believe cracking new deals along with
the renewal of existing ones will fuel its performance. The
segment's revenue in the second quarter improved 15% year over year
while operating income surged 30%.
The Zacks Consensus Estimate for 2012 is currently pegged at $8.08,
shy of the company guidance of $8.45. It also represents a
year-over-year improvement of 12%.
Alliance Data holds a Zacks# 3 (short term Hold rating), indicating
no clear directional pressure on the shares over the near term.
Discover Financial Services
), which closely competes with Alliance Data, currently holds a
Zacks # 2 (short term Buy rating) indicating slight upward boost on
the shares over the near term.