SME(svcdq) has it bottomed out yet? Or will it hit bottom? Message Board

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Non-Tech : SME(svcdq) has it bottomed out yet? Or will it hit bottom?

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To: christopher who wrote ()	2/3/1998 12:04:00 PM
From: leigh aulper	Read Replies (1) of 305

SERVICE MERCHANDISE DELIVERS ON CREDIT INITIATIVE; CREDIT CARD PROCESSING CONVERSION ACCOMPLISHED ON SCHEDULE; SHOULD ADD UP TO $12-15 MILLION IN PRE-TAX INCOME NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 3, 1998--Service Merchandise Company (NYSE: SME) today announced the successful conversion of its private label credit card processing functions to Alliance Data Systems, Inc. (ADS). Initially announced in January, 1997, the partnership is one of several key business initiatives undertaken by Service Merchandise in 1997 to revitalize the Company. The outsourcing is expected to result in additional profit opportunities for Service Merchandise while allowing ADS to expand its business in private label credit card processing. "Credit is an integral part of our business and growth profile," said Service Merchandise Chief Executive Officer Gary Witkin. "It has the capacity to positively impact our bottom line, and we look forward to seeing the Credit organization and ADS achieve our growth targets through creative and aggressive marketing." The Company expects the conversion to add $12-15 million in pre-tax income, based on the size and performance of the current portfolio. The Company also anticipates growth in incremental credit sales through marketing initiatives created by the new Credit Marketing Department.

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