affirm CEO Max Levchin told Jim Cramer that U.S. consumers remain strong even as concerns about the economy and spending continue to grow in the face of rising gas prices.
“American consumers have been incredibly resilient,” Levchin told CNBC’s “Mad Money” on Friday.
Affirm on Thursday reported better-than-expected quarterly results with total distribution volume up 35% and revenue up 33%. The company, which offers buy now, pay later loans, also raised its full-year forecast.
Levchin’s comments Friday came after the closely watched University of Michigan Consumer Sentiment Survey for May hit a record low. A common factor cited by respondents was fear of inflation.
“Every indicator I looked at suggested that U.S. consumers were resilient,” Levchin said. “They’re shopping, they’re paying their bills on time. Generally speaking, they’re putting shopping first, just like they did this time last year.”
Levchin said Affirm continues to see healthy spending trends across multiple categories, including travel, ticketing and household goods. “Travel and ticket sales increased significantly this quarter,” he said, noting that consumers are increasingly financing big-ticket concert tickets and summer travel purchases.
One might wonder if the increased use of “buy now, pay later” loans suggests that consumers are actually feeling nervous. But Levchin said Affirm is not seeing any signs of deterioration in either spending activity or credit quality.
“Generally speaking, no, we are not seeing a decline in financial health or interest in shopping,” he said.
Meanwhile, housing-related spending also improved, although it had lagged in the previous quarter. “There was a very significant increase in household goods,” Levchin said. “People decide, ‘Okay, it’s time to refresh the living room.'”
