American Eagle stock swept higher Thursday after its Q2 beat and reporting that its recent ad campaigns with actress Sydney Sweeney and NFL star Travis Kelce have helped reset the brand and business.
"We were pleased to see an improvement in the business during the second quarter, driven by higher demand, lower promotions and well-managed expenses," CEO Jay Schottenstein said in the release.
American Eagle late Wednesday reported a 15% increase in earnings to 45 cents per share. Total revenue declined 1% to $1.28 billion.
FactSet expected earnings of 20 cents per share on $1.24 billion in revenue.
Comparable sales eased 1%, but still topped the 2.2% decline that analysts expected.
Total ending inventory rose 8%, driven by a 3% increase in the number of units. The higher inventory costs largely reflect the impact of tariffs, American Eagle said.
"The fall season is off to a positive start," Schottenstein continued. "Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales."
American Eagle expects comparable sales to grow in the low single digits for Q3 and Q4, but about flat for the year.
Sydney Sweeney And Travis Kelce Effect
American Eagle partnered with "Euphoria" and "Anyone But You" actress Sydney Sweeney for a jean ad campaign in July, which highlighted the company's and Sweeney's "great jeans."
Schottenstein during the earnings call said that following the ad launch, American Eagle saw "record-breaking new customer acquisition and brand awareness," across age, demographics and genders.
American Eagle during the call noted that the campaign generated
"The American Eagle Sydney Sweeney campaign was intended to be a brand and business reset, and it has," Craig Bommers, chief marketing officer, said on the call. "Sydney Sweeney sells great jeans. She is a winner. And in just six weeks, the campaign has generated unprecedented new customer acquisition."
Bommers said the momentum is "national" and "pervasive." American Eagle has seen denim sellouts of items featured in the campaign.
American Eagle in August also launched a collaboration with Travis Kelce's Tru Kolors brand. The tight end for the NFL's Kansas City Chiefs recently made headlines after announcing his engagement to superstar musician Taylor Swift.
Since the launch of the campaigns, American Eagle has added more than 700,000 new customers and the campaigns together have generated more than 40 billion impressions.
"Now is our opportunity to continue to convert this buzz into business and to convert these new customers into repeat customers," Bommers said.
American Eagle Stock
American Eagle stock soared about 38% Thursday, pushing shares to their highest level since December.
The move stands to increase AEO's market capitalization by $815 million and drive shares well beyond recent resistance around the stock's 40-week moving average.
Still, AEO stock has been on a broad, long-term downtrend stretching back to April 2024. Its Composite Rating from IBD is a very weak 37, along with a soft 45 Relative Strength Rating.
American Eagle has rebounded about 103% from its 2025 low from June. Shares are now up almost 13% this year.
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