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Affirm's New Delinquency Rates

Affirm's New Delinquency Rates

Today is Friday, August 25, 2023.

The Early Bird Index today is 54.33.

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Affirm's New Delinquency Rates

Buy Now Pay Later provider Affirm Holdings (Nasdaq: AFRM) jumped 8.62% in after-hours trading on Thursday after reporting good financial results.

Financials: Affirm reported a loss of 69 cents per share in the past quarter and revenue of $446 million; both were better than expected.

Details: Gross merchandise volume jumped 25% as the company says it experienced “sequentially improved credit results and accelerated growth.”

Powering the Story: Affirm said that all key loan delinquency rates, excluding Pay in 4 and Peloton (Nasdaq: PTON) loans, sequentially improved during the quarter.

Outlook: Affirm is up 51% this year, but is down 21% in the last 30 days. The stock is also down 90% since November 2021.

Final Thoughts: Affirm said that it wants to be profitable on an adjusted operating income basis starting in 2024. However, some investors are still nervous about Affirm’s business model surviving in an age of slower consumer spending.

Notable

Notable Earnings Today: Hibbett (Nasdaq: HIBB).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Crazy Good Kitchen Miami (Mainvest), Kid Sister (Mainvest).

Notable Economic Events Today: Michigan Consumer Sentiment / Expectations (10:00 a.m. ET), Fed Chair Powell Speaks at the Jackson Hole Economic Symposium (10:05 a.m. ET).

Nordstrom's Improvement Falls Flat

Photo by Kelvin Tu / Unsplash

Shares of Nordstrom (NYSE: JWN) ticked down by 0.42% in after-hours trading on Thursday after the retail company posted mixed financial results.

Financials: Nordstrom reported earnings of 84 cents pare share in the past quarter and revenue of $3.77 billion; both were better than expected.

Details: The company said that it saw an improvement in sales at both Nordstrom and its off-price division of Nordstrom Rack.

Yes, But: Net sales decreased by 8.3% in the quarter, which actually represents an improvement from the first quarter.

Outlook: Nordstrom also reaffirmed its revenue and financial outlook for 2023.

Stock Price: The stock is up 6% this year, but is down 22% in the last 30 days.

Final Thoughts: Nordstrom made advancements in the quarter, including improved inventory levels, but the company still has room for growth.

Gap is “Prudently” Planning

Mixed financial results for Gap (NYSE: GPS) resulted in shares of the retail company ticking up by only 1.36% on Thursday during after-hours trading.

Financials: Gap reported earnings of 34 cents per share in the past quarter, which was better than expected. But revenue only reached $3.55 billion; which is below estimates.

Details: Comparable sales dropped 6% but the gross margin increased by 310 basis points.

Stock Price: Gap is down 15% this year, but is up 3% in the last 30 days.

Final Thoughts: After eliminating certain costs, Gap said that it wants to “continue to plan the business prudently.” But the company also warns about “the continued uncertain consumer and macro environment.”