Back to top

Analyst Blog

The Retail Service business of Alliance Data Systems Corporation (ADS - Analyst Report), 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.

Samuels Jewelers is a leading retailer of diamonds and fine jewelry.

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 Card.

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 solutions.

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. (GMAN - Snapshot Report), to continue providing the private label credit card program.   

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 (DFS - Analyst Report), 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.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%