Dive Brief:
- Stitch Fix is integrating Affirm’s buy now, pay later services as a payment option, according to a Thursday press release.
- At checkout, Stitch Fix shoppers will go through a real-time eligibility check. If approved, shoppers can stretch their purchases across monthly payments without late fees, the company said.
- The service is now available on Stitch Fix’s website and mobile app, per the press release.
Dive Insight:
Stitch Fix’s new Affirm integration follows the company’s efforts to add new features and bolster its business.
“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,” Pat Suh, senior vice president of revenue at Affirm, said in a statement.
In addition to adding a new payment option for customers, Stitch Fix has been highlighting its stylist talent. Last year, the company began testing stylist profiles with information about their interests, work portfolios and expertise. Then it introduced the feature incrementally with more details about their stylists, such as fun facts, client testimonials and specialties.
As the company introduces new payment and stylist features for customers, it has been orchestrating a turnaround. Last September, Stitch Fix CEO Matt Baer said the company will begin growing again by the end of fiscal year 2026. Over the past few years the company has laid off some of its employees, closed its U.K. business and shuttered some distribution centers.
In its Q1 earnings released in December, the company reported a 12.6% decline in net revenue year over year to $318.8 million. Stitch Fix also said its number of active clients dropped 18.6% from the previous year. However, its net losses narrowed from $35.5 million in the year-ago period to $6.2 million.
“Our clients are responding to the newness we have brought to our assortment as well as the improvements we’ve made to our client experience,” Baer said in a statement at the time. “This progress is a testament to the Stitch Fix team’s ongoing execution of our transformation strategy, and we continue to expect to return to revenue growth by the end of FY26.”
