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SAN FRANCISCO - In a move to enhance customer purchasing power, Affirm (NASDAQ: AFRM), the $20.34 billion market cap fintech company, has partnered with Stitch Fix (NASDAQ: NASDAQ:SFIX), the renowned online personal styling service, to offer flexible payment options. According to InvestingPro data, Affirm has demonstrated remarkable growth with revenue surging 46.27% over the last twelve months. The collaboration allows approved Stitch Fix customers to spread the cost of their purchases over time with Affirm’s customized monthly payment plans, aiming to provide greater budget control without hidden fees.
Affirm’s addition of Stitch Fix to its merchant network comes after a notable 20% year-over-year increase in fashion sales through Affirm from October to December, signaling a consumer trend towards more prudent payment methods for clothing. This expansion aligns with the company’s strong market performance, as InvestingPro analysis shows a remarkable 98.52% price return over the past six months. Subscribers to InvestingPro can access 10+ additional exclusive ProTips and comprehensive financial metrics for deeper insight into Affirm’s growth trajectory. Pat Suh, Affirm’s Senior Vice President of Revenue, expressed enthusiasm for the partnership, highlighting the added value of payment flexibility for Stitch Fix’s clientele.
To use the service, Stitch Fix shoppers will select Affirm at checkout and undergo a swift eligibility check. Successful applicants can then choose a payment plan that aligns with their financial needs, dividing the total purchase cost across monthly installments.
This initiative places Stitch Fix among more than 45 fashion merchants that have integrated Affirm’s payment solutions in the past six months, reflecting a rising consumer preference for transparent and adaptable payment alternatives in the fashion sector. Affirm is also utilized by prominent retailers such as Amazon (NASDAQ:AMZN), The RealReal (NASDAQ:REAL), Canada Goose, Net-a-Porter, adidas, and David’s Bridal.
The new payment option is available immediately on the Stitch Fix website or app, where shoppers can opt for Affirm at the point of sale.
Affirm’s mission revolves around providing honest financial products that prioritize trust, transparency, and consumer well-being, distinguishing itself from traditional credit options by eschewing late and concealed fees. The company’s payment solutions are subject to eligibility and are offered by various lending partners listed at affirm.com/lenders.
This partnership is based on a press release statement and reflects the continuous evolution of payment options in the retail industry, catering to a customer base seeking more control over their spending habits. While Affirm maintains strong liquidity with a current ratio of 12.29, InvestingPro’s detailed analysis suggests the stock is trading above its Fair Value. Investors can access the comprehensive Pro Research Report, available for Affirm and 1,400+ other US stocks, for in-depth analysis and actionable insights.
In other recent news, Affirm Holdings (NASDAQ:AFRM) Inc. has announced a significant expansion of its partnership with Shopify (NYSE:SHOP), reinforcing its role as the exclusive provider of Shop Pay Installments in the United States and extending this exclusivity to Canada, with plans to enter the UK market. This development is part of Affirm’s strategy to grow its international presence, with Canadian Shopify merchants expected to offer installment payment options in the coming months. In addition, Affirm has partnered with FIS to integrate its pay-over-time solutions into FIS’s debit card offerings, allowing bank clients to offer flexible payment plans and merchant-funded financing options.
Affirm’s recent earnings report exceeded expectations, leading to increased forecasts for fiscal year 2025. RBC Capital Markets raised its price target for Affirm from $67 to $81, citing improvements in operational efficiency and transaction costs. Mizuho (NYSE:MFG) Securities also increased its price target from $78 to $84, highlighting Affirm’s robust second-quarter performance, with Revenue Less Transaction (JO:TCPJ) Costs reaching $419 million, surpassing the guidance range. Both firms maintain positive outlooks on Affirm’s profitability trajectory and growth potential, particularly with its expansion into the UK market.
Affirm’s strategic initiatives and partnerships are seen as key drivers of its financial performance, with analysts noting the potential for continued growth in flexible payment solutions. The company’s focus on enhancing consumer access and merchant growth opportunities aligns with its mission to build a transparent and responsible payment network.
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