American Eagle Shares Soar 25% as Sydney Sweeney and Travis Kelce Campaigns Drive Sales Surge
American Eagle Shares Soar 25% as Sydney Sweeney and Travis Kelce Campaigns Drive Sales Surge
American Eagle Outfitters (AEO) saw its shares jump by a remarkable 25% in after-hours trading on Wednesday, following an announcement that its strategic celebrity tie-ups with actress Sydney Sweeney and athlete Travis Kelce are significantly boosting sales and exceeding financial expectations.
Despite an initial sales dip of 1% over the May-July period, following a 5% slide in the previous quarter, the fashion retailer’s second-quarter performance has instilled confidence. CEO Jay Schottenstein confirmed that performance ‘exceeded expectations’ and projected low single-digit sales growth in the coming months, signaling a positive turnaround fueled by increased purchases across denim and underwear categories.
The company attributes this resurgence to stronger product offerings and the viral success of its recent marketing campaigns. The Emmy-nominated actress Sydney Sweeney’s ‘Great Jeans’ ad, which sparked widespread debate and garnered 40 billion impressions, saw her signature jeans sell out within a week. The campaign, intended as a ‘reset’ for the brand, even drew comments from President Donald Trump, who praised Sweeney’s ad on Truth Social in August.
Further momentum is expected from the collaboration with Travis Kelce, whose clothing range launched just days after news of his engagement to pop superstar Taylor Swift broke. Executives confirmed that more initiatives with both Sweeney and Kelce are planned to sustain this positive trajectory.
However, the company also cautioned analysts about an estimated $70 million in tariff costs for the latter half of the financial year. American Eagle has managed to halve initial tariff estimates through supplier negotiations and sourcing shifts, with some price adjustments also contributing to mitigating the impact.
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