Citing growth from new clients and improving chargeoff trends, Alliance Data Systems Corp. announced dramatic increases in third-quarter revenue and profitability for its private-label credit card unit.
The unit generated operating income of $133.3 million in the quarter, up 121% from a year earlier. Revenue grew 16.6%, to $350 million.
During a conference call Oct. 20 to discuss the results, company officials said a multiyear agreement to provide private-label credit card and marketing services to the nationwide retail chain David's Bridal Inc. had helped expand operations.
Some retailers canceled their private-label card programs this year because of poor performance or bankruptcy, but consumers in general have not cut spending dramatically, Ed Heffernan, Alliance Data's chief executive, said on the call.