American Eagle Outfitters’ shares climbed sharply on Wednesday after the retailer credited high-profile campaigns with actress Sydney Sweeney and NFL star Travis Kelce for lifting its brand profile and boosting sales momentum.
The stock surged 25% in after-hours trading after chief executive Jay Schottenstein said second-quarter results had “exceeded expectations.” While sales slipped 1% in the May–July period — following a 5% decline the previous quarter — the company forecast a return to growth, helped by a stronger product lineup and recent marketing successes.
Viral Campaigns Drive Buzz
The biggest shift came from a denim advert featuring Euphoria star Sydney Sweeney. The “Great Jeans” spot, which played on the word “genes,” sparked both intrigue and criticism. Some saw echoes of outdated ideas about genetics; American Eagle dismissed the claim, saying it was simply a play on words.
Controversial or not, the advert worked. It generated an estimated 40 billion views across social media and billboards, and the jeans Sweeney promoted sold out within a week.
The company also rolled out a partnership with Kansas City Chiefs tight end Travis Kelce, announced soon after his engagement to singer Taylor Swift. Executives said both campaigns had raised awareness and helped bring new energy to the brand.
Resetting the Brand
Chief marketing officer Craig Brommers told analysts the Sweeney campaign was intended as a “reset” for American Eagle, a long-time teen fashion staple that has struggled with slowing sales. “We needed to break through,” he said.
Schottenstein added that autumn trading had started positively, with sales across categories such as denim and underwear showing improvement. The company now expects sales to rise in the “low single digits” over the rest of the year.
Political Spotlight
The campaign even drew comment from former US president Donald Trump, who praised Sweeney’s ad on Truth Social, calling it “the HOTTEST ad out there.” The endorsement underscored how the campaign had spilled beyond fashion into politics and pop culture.
Tariff Pressures
American Eagle also flagged tariffs as a headwind, estimating about $70m in additional costs in the second half of its financial year. That figure is less than half earlier projections, thanks to renegotiated supplier contracts and shifts in sourcing. Executives said modest price increases would help, but stressed that cost-cutting measures remain the main offset.
What’s Next
The retailer plans more campaigns featuring both Sweeney and Kelce as it heads into the crucial holiday season. For investors, this week’s stock rally was an early sign that American Eagle may have found a formula to connect with shoppers again — blending viral marketing with cultural relevance at a time when sales had been faltering.
