COLUMBUS, Ohio - Bread Financial (NYSE: BFH), a leader in digital payment solutions, has secured a multi-year agreement with luxury retailer Saks Fifth Avenue to offer co-branded and private label credit cards, the company announced today. Beginning in August 2024, the Saks World Elite Mastercard (NYSE:MA)® and Saks Credit Card will be issued by Comenity Capital Bank, a subsidiary of Bread Financial.
The deal also includes the transition of Saks Fifth Avenue's existing credit card portfolio to Bread Financial, expected to be completed in the third quarter of 2024, pending customary closing conditions. Cardmembers will earn points redeemable for SaksFirst Gift Cards on purchases at Saks Fifth Avenue, Saks OFF 5TH, and elsewhere where Mastercard is accepted.
Bread Financial aims to enhance the customer experience by leveraging its Enhanced Digital Suite for personalized engagement and simplified account management across Saks's digital platforms and physical stores. Customers will have the option to pre-qualify for credit cards online, through mobile apps, or in-store.
Furthermore, Bread Financial plans to assist Saks Fifth Avenue with targeted marketing initiatives using data insights to foster customer loyalty throughout the shopping journey. Val Greer, EVP and Chief Commercial Officer at Bread Financial, expressed enthusiasm about providing an "elevated and personalized payment experience" for Saks customers.
Emily Essner, Chief Marketing Officer at Saks, echoed the sentiment, highlighting the importance of an "elevated payment experience" for their luxury consumer base and the value of the program in rewarding customer loyalty.
This strategic partnership is expected to offer Saks Fifth Avenue customers enhanced benefits and rewards while expanding Bread Financial's portfolio in the luxury retail segment.
The information in this article is based on a press release statement.
InvestingPro Insights
Bread Financial (NYSE: BFH), in the spotlight for its recent partnership with Saks Fifth Avenue, presents an intriguing financial profile according to the latest data from InvestingPro. With a market capitalization of $1.91 billion and an attractive price-to-earnings (P/E) ratio standing at 4.89, the company is trading at a low earnings multiple. This could indicate that Bread Financial's stock is potentially undervalued relative to its earnings, making it a noteworthy consideration for value investors.
InvestingPro Tips highlight that Bread Financial has maintained dividend payments for nine consecutive years, showcasing a commitment to returning value to shareholders. This consistency in dividend payments, coupled with a dividend yield of 2.18%, may appeal to income-focused investors. Additionally, despite analysts revising earnings downwards for the upcoming period, they predict the company will remain profitable this year, which is reinforced by the company's profitability over the last twelve months. Investors interested in further insights can find additional tips on InvestingPro, including an analysis of the company's shareholder yield and its implications for investment strategy.
For those considering an investment in Bread Financial, it's worth noting that the company has demonstrated resilience with a 28.8% one-year price total return, significantly outstripping many peers in the financial sector. While the stock price has experienced volatility, the long-term growth potential, especially in light of the new Saks Fifth Avenue partnership, could be promising. To access a comprehensive list of InvestingPro Tips for Bread Financial, visit https://www.investing.com/pro/BFH and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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