The Retail Service business of
Alliance Data Systems Corporation
) inked a long-term renewal agreement with Gander Mountain to
continue with the co-brand credit card program service.
Headquartered in St. Paul, MN, Gander Mountain Company offers
fishing, hunting, camping, marine and outdoor lifestyle and
active performance products. It operates119 stores in 24 states
besides an e-commerce site and Overton's catalog brand.
As per the agreement, under Alliance Data's co-branded credit
card program service, the customers of Gander Mountain will
continue to receive free-merchandise rewards depending on their
transaction amount. Under the program, customers can also enjoy
flexible financing options. Moreover, the Gander Mountain credit
card will be customized so that customers can have their
preferred pictures on the cards.
While this is the first long-term agreement in 2013 under
Alliance's Private Label Services and Credit segment, the company
has signed a few agreements under its LoyaltyOne segment.
The Private Label Services and Credit segment has continuously
delivered solid numbers. We believe that cracking new deals along
with the renewal of the existing ones will further enhance its
performance. The segment's revenue in the fourth quarter of 2012
improved 23% year over year, while operating income surged 21%.
Alliance Data expects core earnings per share to be at $9.65, up
12% year over year.The Zacks Consensus Estimate for 2013 is
currently pegged at $9.33, shy of the company's guidance. It also
represents a year-over-year improvement of 13.9%.
Alliance Data currently carries a Zacks Rank #3 (Hold). Among
other financial transaction service providers,
) carrying Zacks Rank #1 (Strong Buy) and
Global Payments Inc
) both carrying a Zacks Rank #2 (Buy) are worth noting.
ALLIANCE DATA (ADS): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
GLOBAL PAYMENTS (GPN): Free Stock Analysis
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