Saks Incorporated Consumates Strategic Alliance with Household International.Business Editors
BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 15, 2003
Retailer Saks Incorporated (NYSE NYSE
See: New York Stock Exchange :SKS SKS Szkolny Klub Sportowy (Polish: School Sports Club)
SKS Some Kind Soul
SKS Samozariadnyia Karabina Simonova (Russian military carbine)
SKS Vojens Lufthavn, Denmark - Jojens ) ("Saks" or the "Company") today announced it has consummated the strategic alliance with the retail services business of Household International ("Household"), a wholly-owned subsidiary of HSBC HSBC Hongkong and Shanghai Banking Corporation
HSBC Humane Society of Broward County (Florida)
HSBC Humane Society of Bay County (Bay County, Michigan) Holdings plc (NYSE:HBC HBC
a definition for medical records to denote 'hit by car'. ), to operate Saks' private label credit card business.
Household has purchased the private label credit card accounts owned by the Company's wholly owned credit card bank as well as the outstanding balances associated with those accounts. The total purchase price of approximately $1.3 billion includes approximately $300 million in net cash proceeds and the assumption or repayment of the Company's approximately $1.0 billion of securitization liabilities.
The impact of the transaction on the Company's ongoing financial results will reflect, among other things, the timing and specific use of the net cash proceeds from this transaction, which will be used for general corporate purposes, including common stock repurchases, debt reduction, and strategic investments.
Household will own the new accounts and balances generated during the term of the alliance, which initially will be ten years. Saks will continue to provide key customer service functions including new account opening, transaction authorization, billing adjustments, and customer inquiries. Saks will receive ongoing program compensation from Household.
Saks operates Saks Fifth Avenue Saks Fifth Avenue is a chain of upscale American department stores that is owned and operated by Saks Fifth Avenue Enterprises (SFAE), a subsidiary of Saks Incorporated. It competes in the elite luxury department store market with Neiman Marcus, Bergdorf Goodman and Barneys New Enterprises (SFAE SFAE San Francisco Art Exchange
SFAE Staff For Acquisition Executive ), which consists of 60 Saks Fifth Avenue stores and 53 Saks Off 5th stores. The Company also operates its Saks Department Store Group (SDSG SDSG Space Division Switching Group
SDSG Spinal Deformity Study Group
SDSG Software Development Support Group (Nintendo) ) with 241 department stores under the names of Parisian, Proffitt's, McRae's, Younkers Younkers is a department store chain in the Midwestern United States. The chain concentrates on the middle and upper-class segments of the market. History
Beginnings , Herberger's, Carson Pirie Scott Carson Pirie Scott & Co., known informally as Carson's, is a chain of traditional department stores that have been in business for over 150 years. Their product price points are targeted to the moderate-to-upscale shopper. , Bergner's, and Boston Store.
Household International is a wholly-owned subsidiary of HSBC Holdings plc, one of the largest banking and financial services organizations in the world. Through its businesses, Household is a leading provider of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household operates under the two oldest and most recognized names in consumer finance, HFC 1. (networking) HFC - Hybrid Fiber Coax.
2. (hardware) HFC - hydrofluorocarbon. and Beneficial. Additionally, Household is one of the nation's largest issuers of private label and general-purpose credit cards, including The GM Card(R) and the AFL-CIO's Union Plus(R) card.
The information contained in this press release that addresses future results or expectations is considered "forward-looking" information within the definition of the Federal securities laws. Forward-looking information in this document can be identified through the use of words such as "may," "will," "intend," "plan," "project," "expect," "anticipate," "should," "would," "believe," "estimate," "contemplate," "possible," and "point." The forward-looking information is premised on many factors, some of which are outlined below. Actual consolidated results might differ materially from projected forward-looking information if there are any material changes in management's assumptions.
The forward-looking information and statements are based on a series of projections and estimates and involve risks and uncertainties. These risks and uncertainties include such factors as: the level of consumer spending for apparel and other merchandise carried by the Company and its ability to respond quickly to consumer trends; adequate and stable sources of merchandise; the competitive pricing environment within the department and specialty store industries as well as other retail channels; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to increased relationship marketing efforts of proprietary credit card loyalty programs; effective expense control; and changes in interest rates. For additional information regarding these and other risk factors, please refer to Exhibit 99.1 to the Company's Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the fiscal year ended February 2, 2002 filed with the Securities and Exchange Commission ("SEC"), which may be accessed via EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. through the Internet at www.sec.gov.
Management undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons are advised, however, to consult any further disclosures management makes on related subjects in its reports filed with the SEC and in its press releases.