Alliance Data Systems Corporation ADS announced that its Retail Service business has signed a long-term renewal agreement with FULLBEAUTY Brands. With this deal the company intends to keep providing private label credit card services to FULLBEAUTY, which is one of its top ten clients.
New York-based FULLBEAUTY Brands is a leader in plus-sized women and men’s clothing. The company, through its seven brands, provides customized fashion and lifestyle products.
FULLBEAUTY Brands has been Alliance Data’s client for decades. With this renewed agreement, Alliance Data will now introduce new branded credit card programs designed exclusively for FULLBEAUTY Brands. This will help in boosting FULLBEAUTY Brands’ long-term loyalty efforts with the help of a new integrated rewards program. Per the program, customers will be able to earn points whenever they spend a dollar or more. The points collected can then be redeemed in the form of rewards certificates. Additionally, they will benefit from offers like free shipping and special birthday rewards.
This deal renewal will benefit Alliance Data, as it will be able to explore additional marketing strategies for FULLBEAUTY Brands card programs. In 2014, private label credit card services contributed 45.2% of the company's consolidated revenues. Of late, the company’s Retail Service business has been signing renewal agreements with its clients, thereby retaining its decades-long solid customer relationships. This in turn is expected to result in improvement in the top line going forward.
In Jan 2015, Alliance Data’s Canadian coalition loyalty business – LoyaltyOne – renewed a multi-year contract with Metro Ontario Inc. – a subsidiary of Metro Inc. In 2014, the company made 4 multi-year renewal programs.
Currently, Alliance Data carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the finance sector include Blackhawk Network Holdings, Inc. HAWKB, Global Cash Access Holdings, Inc. GCA and General Finance Corporation GFN. While Blackhawk Network and Global Cash sport a Zacks Rank #1 (Strong Buy), General Finance holds a Zacks Rank #2 (Buy).
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