Alliance Data-Blue Nile Ink Deal - Analyst Blog
14 Maggio 2012 - 5:30PM
Zacks
Alliance Data Systems Corporation (ADS) inked a
long-term agreement with Blue Nile (NILE) in order
to initiate and control a new private label credit card program for
the latter. Seattle-based Blue Nile is the leading online retailer
of diamonds and fine jewelry.
The card program will encompass customized financing options and
online account management without charging any annual card fee. The
program enables customers to choose from financial options
including 6 and 12 months which would ultimately be equivalent to
the cash payment that the customers had to pay. On the other hand,
customers have the ease to make payments over a period of 24 or 48
months.
Alliance Data will also partner Blue Nile in bringing added
incentives for cardholders and marketing initiatives through
advanced analytics capabilities, direct mail and email, web and
mobile channels.
In the first quarter of 2012, the Private Label Services and
Credit segment revenue registered a 7% growth. We expect this
transaction to help the company generate additional revenue as well
as help the segment to continue delivering robust growth going
forward.
Alliance Data posted strong first quarter results with operating
earnings substantially ahead of the Zacks Consensus Estimate and
year-ago earnings. The strong results came on the back of solid
performances across all segments.
The quantitative Zacks #2 Rank (short-term Hold rating) for the
company indicates no clear directional pressure on the stock over
the near term.
Headquartered in Dallas, Texas, Alliance Data Systems
Corporation, together with its subsidiaries, provides data-driven
and transaction-based marketing and customer loyalty solutions
primarily in the United States and Canada. It competes with
Discover Financial Services (DFS).
ALLIANCE DATA (ADS): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
BLUE NILE INC (NILE): Free Stock Analysis Report
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