Alliance Data Unit To Offer Card Services To Lands' End
Zacks Investment Research | Oct 08, 2019 11:27PM ET
Alliance Data Systems Corporation’s (NYSE:ADS) card services business has inked a long- term deal with Lands’ End to provide co-brand and private label credit card services. This deal with Alliance Data will enable Lands’ End to meet the expectations of its customers and boost customer loyalty.
Lands’ End is a leading uni-channel retailer of casual clothing, accessories and footwear for women, men and children, along with home products.
The multi-year agreement will enable Lands’ End to leverage Alliance Data's simple online acquisition capabilities, including real-time prescreen and instant credit. This, in turn, will allow card members to use their card instantly upon approval.
The new Lands' End Visa (NYSE:V) co-brand and private label credit cards will help card members to earn rewards quickly and enhance brand loyalty.
Alliance Data's Card Services segment credit programs help in creating profitable relationships between partners and card members, driving loyalty. Continuous agreements with new and existing clients boost the private label card portfolio. Recently, Alliance Data’s card services business inked a deal with Sally Beauty Holdings (NYSE:SBH) , the largest beauty supply distributor in the United States, to provide private label credit card services.
The Card Service segment provides branded private label, co-brand and commercial card programs and contributes majorly to Alliance Data’s total revenues.
The company’s solid revenue growth indicates the strength of its strategies. The trend of consumer-based businesses shifting their marketing spend to data-driven marketing strategies should help the company retain the revenue momentum. The company estimates 2019 revenues to grow 4% year over year to $5.8 billion.
Shares of this Zacks Rank #3 (Hold) private label credit card processing firm have lost 20.9% year to date against the Zacks Investment Research
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