Affirm adds Stitch Fix to its network of fashion merchants

Rhea-AI Summary

Affirm (NASDAQ: AFRM) has announced a new partnership with Stitch Fix (NASDAQ: SFIX), adding the online personal styling service to its merchant network. Through this integration, approved Stitch Fix shoppers can now access flexible monthly payment plans with no late or hidden fees.

The expansion comes as Affirm reported a 20% year-over-year increase in fashion sales during October through December, indicating growing consumer preference for flexible payment options in clothing purchases. Stitch Fix joins over 45 fashion merchants who have integrated Affirm in the past six months, including major retailers like Amazon, The RealReal, Canada Goose, Net-a-Porter, adidas, and David's Bridal.

Positive

• 20% YoY growth in fashion sales (Q4)
• Added 45+ fashion merchants in past 6 months
• Partnership with major retailer Stitch Fix
• Expansion of merchant network includes Amazon, Canada Goose, Net-a-Porter

Negative

• None.

Insights

Financial Analyst

Affirm's partnership with Stitch Fix represents a strategic expansion of its buy-now-pay-later (BNPL) services in the fashion vertical, where the company has seen 20% year-over-year growth in the October-December period. This growth rate outpaces overall e-commerce trends, suggesting Affirm is capturing market share in the competitive BNPL space.

The integration with Stitch Fix adds a differentiated merchant to Affirm's network, as Stitch Fix's personalized styling service model typically generates higher average order values than standard fashion retailers. For Affirm, higher-value transactions are particularly valuable as they can drive more substantial revenue per transaction while potentially attracting higher-quality borrowers.

This partnership continues Affirm's aggressive merchant acquisition strategy, with 45+ fashion merchants added in just six months. The fashion vertical is particularly strategic for BNPL providers due to its:

• Higher average order values compared to general merchandise
• Seasonal purchasing patterns that create cash flow challenges for consumers
• Emotional buying decisions that BNPL can help facilitate

For Stitch Fix, which has struggled with customer retention and growth, BNPL integration could help address affordability barriers, potentially increasing conversion rates by 20-30% based on industry benchmarks. This comes at a critical time as Stitch Fix attempts to revitalize its business model amid intense competition.

The timing suggests both companies are positioning for a potential rebound in discretionary spending, though Affirm will need to carefully manage credit quality if economic conditions deteriorate. This partnership further entrenches Affirm in the embedded finance ecosystem, creating more competitive pressure on traditional credit providers while strengthening its position against BNPL rivals like Klarna and PayPal.

Stitch Fix shoppers can now pay over time with Affirm’s customized monthly payment plans

SAN FRANCISCO--(BUSINESS WIRE)-- Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced that it has added Stitch Fix (NASDAQ: SFIX), the leading online personal styling service, to its rapidly expanding merchant network. Approved Stitch Fix shoppers can now pay over time for the styles they love, while maintaining increased control over their budget.

“In October through December, fashion sales through Affirm were up 20% year-over-year, demonstrating a shift toward smarter, more responsible ways to pay for clothing and accessories. To meet this increased consumer demand, we’re growing our network to include even more fashion merchants,” said Pat Suh, SVP of Revenue at Affirm. “Stitch Fix’s personal styling service has long been known for helping its clients discover the styles they love, and we’re excited to work with Stitch Fix to offer those clients more flexibility and control over how they pay for their purchases.”

Stitch Fix clients interested in using this payment method will simply select Affirm at checkout and go through a quick, real-time eligibility check. If approved, Stitch Fix clients can choose the customized payment plan that best suits their needs, splitting the total cost of their purchase across monthly payments, with no late or hidden fees.

With this launch, Stitch Fix joins over 45 fashion merchants who have integrated Affirm in the past six months, underscoring the growing demand for flexible, transparent payment options in the fashion industry. Leading retailers, including Amazon, The RealReal, Canada Goose, Net-a-Porter, adidas, David’s Bridal, and more are also offering Affirm’s payment solutions to their customers.

Shoppers can visit Stitch Fix’s website or app to select Affirm as a payment option today.

About Affirm

Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust, transparency, and putting people first — we empower millions of consumers to spend and save responsibly and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

Payment options through Affirm are subject to eligibility, and are provided by these lending partners: affirm.com/lenders. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to California Finance Lender license 60DBO-111681.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250227660471/en/

Affirm: press@affirm.com

Source: Affirm

FAQ

What was Affirm's (AFRM) fashion sales growth in Q4 2023?

Affirm reported a 20% year-over-year increase in fashion sales during October through December.

How many fashion merchants have integrated with Affirm (AFRM) in the past 6 months?

Over 45 fashion merchants have integrated Affirm's payment solutions in the past six months.

What payment options does Affirm (AFRM) offer Stitch Fix customers?

Affirm offers Stitch Fix customers customizable monthly payment plans with no late or hidden fees after a quick eligibility check.

Which major retailers are using Affirm's (AFRM) payment solutions?

Major retailers using Affirm include Amazon, The RealReal, Canada Goose, Net-a-Porter, adidas, and David's Bridal.