Alliance Data Systems Corporation (ADS) has inked a long-term agreement to provide private label credit card services to J.Jill, a leading multichannel fashion retailer of women’s apparel, accessories, and footwear headquartered in Quincy, Massachusetts.

Per the agreement, Alliance Data will provide private label credit card services for the J.Jill credit card. Services will  include account acquisition and activation, receivables funding, card authorization, private label credit card issuance, statement generation, remittance processing, customer service functions and marketing services.

Also, Alliance Data acquired J.Jill’s existing file of private label credit card accounts. It is a portfolio in the $50 million range with moderate level of delinquencies.

In 2010, the Private Label Services and Credit segment recorded the highest growth in revenue. Revenue from the segment increased a whopping 96% from 2009. We expect this transaction will help the company generate additional revenue and help the segment to continue delivering robust growth going forward.

Alliance Data reported adjusted earnings of $1.56 per share for fourth-quarter 2010, beating the Zacks Consensus estimate by 25 cents.

During the fourth quarter conference call, Alliance Data projected single-digit growth in revenues and guided core earnings to $1.65 per share in first quarter 2011. The Zacks Consensus Estimate for first-quarter 2011 is $1.52 per share.

For fiscal 2011, Alliance Data expects revenues of $3 billion and adjusted earnings of $6.75 per share. The Zacks Consensus Estimate for first-quarter 2011 is $6.25 per share.

The company remains poised to fare well in the upcoming quarters based on continued strong performance across the segment, solid financial position and focus on boosting shareholder value.

The quantitative Zacks #3 Rank (short-term Hold rating) for Alliance Data 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
 
Zacks Investment Research