U.S. markets close in 5 hours 17 minutes
  • S&P 500

    4,686.57
    +94.90 (+2.07%)
     
  • Dow 30

    35,750.48
    +523.45 (+1.49%)
     
  • Nasdaq

    15,670.31
    +445.16 (+2.92%)
     
  • Russell 2000

    2,262.83
    +59.35 (+2.69%)
     
  • Crude Oil

    72.15
    +2.66 (+3.83%)
     
  • Gold

    1,782.90
    +3.40 (+0.19%)
     
  • Silver

    22.43
    +0.17 (+0.75%)
     
  • EUR/USD

    1.1249
    -0.0038 (-0.34%)
     
  • 10-Yr Bond

    1.4500
    +0.0160 (+1.12%)
     
  • GBP/USD

    1.3234
    -0.0027 (-0.20%)
     
  • USD/JPY

    113.5710
    +0.0810 (+0.07%)
     
  • BTC-USD

    51,846.68
    +3,077.78 (+6.31%)
     
  • CMC Crypto 200

    1,336.77
    +15.49 (+1.17%)
     
  • FTSE 100

    7,331.84
    +99.56 (+1.38%)
     
  • Nikkei 225

    28,455.60
    +528.23 (+1.89%)
     

UPDATE 1-Affirm forecasts weaker sales volume, shares drop

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Adds results, shares, details)

Feb 11 (Reuters) - Affirm Holdings Inc on Thursdayforecast weaker sales volume for the current quarter, signalinga slowdown in the pandemic-induced boom in online shopping thathelped it narrow its loss in its first results as apublicly-traded company.

The company said it expects third-quarter gross merchandisevolume between $1.80 billion and $1.85 billion, lower than the$2.1 billion it reported for the previous three months, sendingits shares down 8.6% after the bell.

Affirm was founded in 2012 by PayPal Holdings Incco-founder Max Levchin to offer small loans to people withoutcredit histories or savings accounts for items ranging from anew mattress to an outfit for a job interview.

So-called buy now, pay later services - offered by providerssuch as Affirm, Klarna, Afterpay Ltd and PayPal HoldingInc’s "Pay In 4" - have blossomed across retailwebsites during the pandemic as people have turned more toshopping online.

Affirm's active customers rose by 52% to 4.5 million in thesecond quarter ended Dec. 31.

It reported a net loss attributable to common stockholdersof $31.6 million, or 45 cents per share, compared with a loss of$44.2 million, or 92 cents per share, a year earlier.

Affirm lets shoppers select its services at checkout, decidea payment schedule ranging from six weeks to four years and thenconfirm their loan. It shows customers how much a loan will costin dollar terms and does not charge late fees or compoundinterest.

For example, a purchase of $500 would eventually cost theshopper $512.82, under a three monthly payments plan based on a15% annual percentage rate.(Reporting by Noor Zainab Hussain in Bengaluru; Editing byAditya Soni)