American Eagle Stock Jumps 20% on Sydney Sweeney Campaign, Quarterly Profit Tops Estimates

New York — Shares of American Eagle Outfitters jumped over 20% in after-market trading Wednesday after the retailer said quarterly results topped Wall Street estimates and attributed its Sydney Sweeney campaign as its "best" ever.

The denim company indicated that its collaboration with the Euphoria star, rolled out in late July, spurred a dramatic increase in traffic, customer acquisition, and denim sellouts. The company also noted a recent collaboration with NFL player Travis Kelce, which helped boost sales considerably, added to the momentum ahead of the back-to-school season.

The back-to-school season is off to a strong start," CEO Jay Schottenstein said. "Improved product offerings and the performance of more recent marketing campaigns featuring Sydney Sweeney and Travis Kelce have improved awareness, engagement, and comparable sales. We remain committed to driving profitability, long-term growth, and shareholder value.

For the second quarter, American Eagle reported a profit of $0.45 a share, more than twice the analyst estimate of $0.21, on revenue of $1.28 billion. Net income was $77.6 million, flat with the same period last year.

The firm confirmed its fiscal-year sales guidance, estimating flat comparable sales, while lowering its operating income forecast to $255–$265 million because of tariffs headwinds, down from its previous range of $360–$375 million. Gross margins will continue to be pressured throughout the year.

American Eagle reported that it added 700,000 new customers in August alone, with traffic through stores and digital channels increasing by double digits. Products associated with the Sweeney and Kelce campaigns, such as "The Sydney Jean" and athlete-inspired wear, sold out in days.

Despite recent merchandising missteps and ongoing tariff challenges, the retailer said its marketing push is helping it stay competitive against rivals Abercrombie & Fitch, Gap, and Levi’s, which are also investing heavily in denim-focused campaigns.