Posted 4/1/2014 09:58 am
Updated 9 months ago
Dillard's Inc. of Little Rock said Tuesday that Wells Fargo & Co. will handle the publicly traded department store chain's credit cards.
Wells Fargo of San Francisco will fund, issue and service Dillard's-branded private label and co-brand credit cards, according to a joint news release.
The 10-year agreement is expected to begin in the fourth quarter, after Dillard's agreement with GE Consumer Finance ends. Dillard's received about $113 million in revenue from the GE agreement in the fiscal year that ended Feb. 1. In fiscal 2012, Dillard's received $107 million in revenue from GE; in fiscal 2011, it took in $96 million.
Financial terms of the Wells Fargo agreement weren't disclosed.
"We look forward to bringing Wells Fargo's proven marketing and underwriting capabilities as well as new rewards strategies to Dillard's so together we can deliver great value to customers," Tom Wolfe, head of Wells Fargo's Consumer Credit Solutions, said in the news release.
Dillard's also was happy with the agreement.
"We are pleased with this new partnership on many levels, from the financial arrangements to our shared vision for future program growth," Dillard's President Alex Dillard said in the news release.
For the fiscal year that ended Feb. 1, Dillard's reported sales of $6.5 billion and a net income of $323.7 million. For the previous year, Dillard's had $6.6 billion in sales and a net income of $336 million.