Alliance posts 4Q gains in revenue, net income

Dallas - Alliance Data, a provider of a variety of financial products and services including private-label credit cards to retailers, had a good fourth quarter with gains of 17% in revenue and 41% in net income.
     Ed Heffernan, president and CEO, said the company performed well on several fronts, including its LoyaltyOne air miles reward card.
"The highlight for the fourth quarter occurred in our Private Label segment," Heffernan said.
     "While the overall U.S. holiday period showed a solid 4% increase in spend, it required heavy promotions by retailers to get there. At Private Label, our retail partners' results were mixed, with the majority posting results at or below the overall U.S. average increase. Our loyalty card programs were a bright spot, in some cases the bright spot, and really helped our retail partners drive incremental sales.
"Our focus was on new cardholder acquisition - building a larger, stronger customer base - as well as keeping existing cardholders highly engaged through our targeted, data-driven marketing," he said.
     Alliance Data's fourth-quarter revenue was $1.14 billion, up from $972 million in the same quarter a year earlier. Earnings of $118 million or $1.79 per share were up from $84 million or $1.27 per share.
     Results for the year also were positive. Revenue of $4.3 billion was up 19% from 2012, and net income of $496 million or $7.42 per share was up 18% from $422 million or $6.58 per share the previous year.
     Revenue for the Private Label segment increased 13% in the fourth quarter to $526 million, driven by a 14% increase in average credit card receivables, the company said.

Furniture Today Staff | Staff Editors

Furniture Today covers all the news concerning manufacturers, retailers and suppliers in the home furnishings sector.

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