Affirm CEO says 'the American consumer is unbelievably resilient'

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The American consumer is unbelievably resilient, says Affirm CEO

Mad Money with Jim Cramer

Affirm CEO Max Levchin told Jim Cramer the American consumer remains strong, even as concerns about the economy and spending continue to mount in the face of high gas prices.

“The American consumer is unbelievably resilient,” Levchin said on CNBC’s “Mad Money” on Friday.

Affirm reported better-than-expected quarterly results on Thursday, with gross merchandise volume rising 35% and revenue increasing 33%. The provider of buy now, pay later loans also raised its full-year forecast.

Levchin’s comments Friday come after the University of Michigan’s closely watched consumer sentiment survey for May touched a fresh record low. Inflation worries were a common factor cited by respondents.

“Every metric I could look at suggested U.S. consumers are resilient,” Levchin said. “They’re shopping. They’re paying their bills on time. They are, generally speaking, just as shopping-first as they were this time last year.”

Levchin said Affirm continues to see healthy spending trends across multiple categories, including travel, ticketing, and home goods. “We saw a huge rise in travel and ticketing this quarter,” he said, noting that consumers are increasingly financing expensive concert tickets and summer travel purchases.

Some observers may wonder whether increased use of buy now, pay later loans suggests consumers are actually feeling strained. However, Levchin said Affirm has not seen signs of deterioration in either spending activity or credit quality.

“Generally speaking, no, we’re not seeing any decline either in financial health or in interest in shopping,” he said.

Meanwhile, home-related spending also improved after lagging in prior quarters. “We saw a really nice rise in homewares,” Levchin said. “People decide, ‘Hey, it’s time to refresh my living room.’”

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Affirm CEO Max Levchin goes one-on-one with Jim Cramer

Mad Money with Jim Cramer

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