Affirm's Partnership With Stitch Fix is Crucial
Affirm's Partnership With Stitch Fix is Crucial
Affirm's Partnership With Stitch Fix is Crucial
Affirm Holdings, Inc. AFRM has recently partnered with Stitch Fix, Inc. SFIX, an online personal styling service provider, to offer flexible pay-over-time options for fashion purchases. This collaboration adds Stitch Fix to Affirm’s extensive global network, which includes more than 337,000 merchants as of Dec. 31, 2024.
The partnership comes amid rising demand for buy now, pay later (BNPL) solutions in the fashion industry. From October to December, fashion sales through Affirm grew 20% year over year, and over the past six months, more than 45 fashion merchants joined Affirm’s network. As consumers continue to seek financial flexibility, Affirm is expected to expand its partnerships with more fashion retailers.
For Stitch Fix, integrating Affirm's payment plans — known for their transparency and absence of hidden or late fees — could help drive higher sales and larger order values. Following an 18.6% year-over-year decline in active clients to 2.43 million in the last reported quarter, this move will likely help attract and retain more shoppers.
The partnership also benefits Affirm by increasing its Gross Merchandise Value (GMV). In the last quarter, Affirm’s GMV rose 34.7% year over year to $10.1 billion, fueled by strong sales in general merchandise, travel and ticketing categories, as well as a robust holiday season. For fiscal 2025, management expects GMV to range between $34.74 billion and $35.34 billion.
With inflation raising costs in recent years, more consumers have turned to BNPL solutions for greater purchasing power. As interest rates stabilize, lower borrowing costs could further boost transactions and drive greater adoption of Affirm’s services.
Affirm Holdings, Inc. AFRM has recently partnered with Stitch Fix, Inc. SFIX, an online personal styling service provider, to offer flexible pay-over-time options for fashion purchases. This collaboration adds Stitch Fix to Affirm’s extensive global network, which includes more than 337,000 merchants as of Dec. 31, 2024.
The partnership comes amid rising demand for buy now, pay later (BNPL) solutions in the fashion industry. From October to December, fashion sales through Affirm grew 20% year over year, and over the past six months, more than 45 fashion merchants joined Affirm’s network. As consumers continue to seek financial flexibility, Affirm is expected to expand its partnerships with more fashion retailers.
For Stitch Fix, integrating Affirm's payment plans — known for their transparency and absence of hidden or late fees — could help drive higher sales and larger order values. Following an 18.6% year-over-year decline in active clients to 2.43 million in the last reported quarter, this move will likely help attract and retain more shoppers.
The partnership also benefits Affirm by increasing its Gross Merchandise Value (GMV). In the last quarter, Affirm’s GMV rose 34.7% year over year to $10.1 billion, fueled by strong sales in general merchandise, travel and ticketing categories, as well as a robust holiday season. For fiscal 2025, management expects GMV to range between $34.74 billion and $35.34 billion.
With inflation raising costs in recent years, more consumers have turned to BNPL solutions for greater purchasing power. As interest rates stabilize, lower borrowing costs could further boost transactions and drive greater adoption of Affirm’s services.