Alliance Data Unit Extends Ties With Restoration Hardware
Zacks Investment Research | Oct 13, 2016 10:44PM ET
Alliance Data Systems Corporation’s (NYSE:ADS) Columbus, OH-based card services unit recently entered into a long-term renewal agreement with Restoration Hardware (“RH”). According to the deal, RH will receive private label card services from the Alliance Data affiliate.
Based in San Francisco Bay Area, RH is one of the most creative and fastest growing luxury brands in the home furnishings marketplace. The company offers an unparalleled mix of inspiring design to its customers with unique perspective, superior quality and excellent value. The collections are available through the company’s retail galleries in the United States and Canada, online and through its Source Books.
This agreement is expected to benefit RH immensely in improving its growth strategies. This is because Alliance Data’s cards services unit has the required experience in catering to the credit needs of RH’s highly affluent customer base.
Also, the card services business will continue to offer an array of credit and marketing services for the RH card program. This program offers some unique benefits to those under the RH Membership Program alongside flexible financing and payment options.
Investors should note that the latest agreement is an extension of the 14-year long solid relationship between Alliance Data’s card services unit and RH. The deal is undoubtedly a boon for RH customers as they can now avail the broad range of innovative financing alternatives offered by the Alliance Data card services unit.
Alliance Data’s card services business is renowned for the customized marketing and loyalty solutions that it provides through branded credit programs. These solutions drive profitable relationships between its brand partners and card members.
Alliance Data expects to boost its sales growth over the next several years through such strategic partnerships. Also, the company boasts strong fundamentals that are supported by a stable credit environment, low funding costs and expense leverage. We anticipate the card services segment to continue improving with the help of such revenue enhancing moves.
Currently, Alliance Data carries a Zacks Rank #4 (Sell).
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