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OAK BROOK, Ill. - Ace Hardware announced Wednesday a partnership with payment network Affirm (NASDAQ:AFRM) to provide customers with buy now, pay later options at participating stores across the United States. Affirm, which has shown impressive revenue growth of 38.8% over the last twelve months, continues to expand its retail partnerships.
The collaboration enables customers at Ace’s participating retail locations to access flexible payment plans for purchases starting at $50. Shoppers can use the service by scanning a QR code at checkout, which initiates a real-time eligibility check. With a strong current ratio of 11.52, InvestingPro data shows Affirm maintains robust liquidity to support its growing operations.
"Our partnership with Affirm builds on Ace’s Helpful promise, giving customers more flexibility to take on the projects that matter to them," said Andy Enright, Senior Vice President of Retail Strategy & Operations at Ace Hardware.
Ace Hardware, which operates over 5,200 locations, most independently owned and operated, joins Affirm’s network of more than 375,000 retail partners, including World Market, Williams Sonoma, and Pottery Barn.
Pat Suh, SVP of Revenue at Affirm, stated that the company underwrites each transaction in real time and does not charge late or hidden fees, ensuring transparent payment options for customers.
According to the press release statement, approved customers will see their payment terms upfront before completing their purchases.
Affirm (NASDAQ:AFRM), currently valued at $23.8 billion, provides payment services that allow consumers to pay for purchases over time. The payment options are subject to eligibility checks and are provided through Affirm’s lending partners. The company’s stock has shown significant momentum, delivering a 60.58% return over the past six months, though InvestingPro analysis indicates the stock may be trading above its Fair Value.
In other recent news, Affirm Holdings Inc. has been the subject of multiple analyst evaluations. Evercore ISI reiterated its Outperform rating with a $100 price target following Affirm’s expanded partnership with Apple Pay, allowing users to utilize buy-now-pay-later options in-store through their Apple Pay wallet. Citizens Financial’s JMP analyst also maintained a Market Outperform rating, citing Affirm’s growth potential due to its extensive range of retail partners. Meanwhile, RBC Capital kept its Sector Perform rating and $97 price target, noting that spending from Affirm’s user base remains strong. Additionally, Affirm announced the approval of annual equity awards for its executive officers under its Amended and Restated 2012 Stock Plan. These awards include restricted stock units and performance stock units that will vest into shares of Affirm’s Class A common stock. These developments come amid broader concerns in the consumer finance sector, as highlighted by recent selling pressure due to fears over consumer credit quality.
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