American Eagle Outfitters (AEO) is suddenly in the spotlight after a massive surge in its stock price. The U.S.-based fashion retailer saw its shares rise more than 25% in after-hours trading, attracting the attention of both Wall Street and retail investors.
Much of the buzz is coming from the brand’s high-profile celebrity campaigns, particularly those featuring actress Sydney Sweeney and NFL star Travis Kelce. Their collaborations have gone viral on social media, garnering millions of views and making American Eagle a hot topic again among young shoppers.
Company CEO Jay Schottenstein described the retailer’s second-quarter results as better than expected, citing an improved product range, new marketing and new consumer demand. For a brand that has struggled with sluggish sales in recent quarters, the surge could signal a meaningful turnaround.Analysts say the combination of smart celebrity partnerships and a greater focus on trends has re-established American Eagle as a relevant player in the highly competitive apparel market.
Investors are now watching this closely, and the coming months will test whether this rally represents a long-term boost or is just a temporary spike driven by hype.
American Eagle Outfitters (AEO), the popular U.S. fashion retailer, has found itself back in the spotlight after a surprising stock rally. Shares jumped more than 25% in after-hours trading, driven largely by viral celebrity campaigns featuring actress Sydney Sweeney and NFL star Travis Kelce
The company’s CEO, Jay Schottenstein, said American Eagle’s second-quarter performance “exceeded expectations,” crediting stronger product offerings and the success of recent marketing campaigns for reviving consumer demand. After several sluggish quarters, this marks a potential turning point for the brand.
👖 Sydney Sweeney’s ‘Great Jeans’ Ad Goes Viral
One of the biggest drivers of the company’s resurgence has been the controversial yet attention-grabbing “Great Jeans” advertisement starring Emmy-nominated actress Sydney Sweeney.
In the ad, Sweeney appears in a denim outfit and delivers a line that instantly sparked debate online:
- > “Genes are passed down from parents to offspring, often determining traits like hair color, personality, and even eye color. My jeans are blue.”
The play on the word “genes/jeans” struck a chord, drawing both intrigue and backlash. Some critics argued that the ad unintentionally echoed ideas linked to eugenics, a discredited theory about selective breeding. However, American Eagle clarified that the message was strictly about fashion and denim, not genetics.
Despite the controversy, the ad proved to be a commercial success. It generated over 40 billion impressions across social media, billboards, and storefronts. Within a week, Sweeney’s featured jeans sold out completely, signaling a major win for the brand.
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Travis Kelce Collaboration Brings Extra Buzz
Adding to the momentum, American Eagle recently announced a partnership with Travis Kelce, the Kansas City Chiefs tight end, who has been making headlines of his own after his engagement to pop superstar Taylor Swift.
The timing of this collaboration couldn’t have been better. The buzz around Kelce’s personal life only amplified the visibility of American Eagle’s brand. Combined with the Sweeney campaign, the company believes these partnerships will push sales growth into the “low single digits” over the coming months, reversing recent declines.
Sales Dip But Outlook Improves
Despite the upbeat stock reaction, American Eagle’s recent financials show the company still faces challenges. Between May and July, sales slipped by 1%, though this was a marked improvement compared to the 5% decline in the previous quarter.
Executives had previously pulled back the company’s annual sales forecast due to economic uncertainty, but they now expect moderate growth as consumer interest rebounds.
However, the retailer warned of additional costs—approximately $70 million—from U.S. tariffs in the second half of the financial year. Thanks to negotiations with suppliers and shifting production sources,
those costs were cut nearly in half. The company also hinted at slight price increases, but emphasized that pricing alone is not their main strategy for offsetting tariff pressures.
The White House Weighs In
The Sweeney campaign even reached the political stage. Former U.S. President Donald Trump weighed in on the controversy, praising the actress and the ad in a post on his social media platform Truth Social.
- > “Sydney Sweeney, a registered Republican, has the HOTTEST ad out there. Go get ’em Sydney!”
His comments further fueled public interest in the campaign, bringing even more visibility to the brand.
🔮 What’s Next for American Eagle?
Looking ahead, American Eagle executives confirmed that both Sydney Sweeney and Travis Kelce will play larger roles in future marketing campaigns.
The company views these partnerships as critical in strengthening its brand identity, especially among younger demographics who are increasingly influenced by celebrity-driven content.
The viral campaigns have also positioned American Eagle as a more culturally relevant brand in a highly competitive retail space, where teen fashion staples like Hollister and Abercrombie are fighting to reclaim relevance.
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✅ Final Thoughts
American Eagle’s latest surge highlights the power of celebrity marketing in today’s retail landscape. While financial pressures from tariffs and broader economic uncertainty remain, the brand has managed to turn consumer attention back in its favor.
With Sydney Sweeney’s viral denim campaign and Travis Kelce’s timely collaboration, American Eagle has proven that a bold, well-timed marketing strategy can drive both sales and stock prices—even when traditional performance metrics are lagging.
If the company can continue building on this momentum while managing costs, it may be on the verge of a lasting turnaround.