:max_bytes(150000):strip_icc()/GettyImages-2228080229-7afda84fe7e84d189875e0b94d36fbd4.jpg "Sydney Sweeney and Travis Kelce Ads Boost Results for American Eagle. Its Stock Is Soaring")
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Key Takeaways
- American Eagle Outfitters shares popped Wednesday after the retailer posted better-than-expected earnings and boosted its outlook.
- The retailer said it benefited from the success of ad campaigns with actress Sydney Sweeney and NFL star Travis Kelce.
American Eagle Outfitters stock is getting a big lift from celebrity buzz.
Shares of the clothing retailer were up about 15% in recent trading, after the company posted stronger-than-expected earnings, with a bit of help from ads featuring actress Sydney Sweeney and NFL star and Taylor Swift fiance Travis Kelce.
American Eagle (AEO) posted earnings per share of $0.53 on revenue that jumped 5.7% year-over-year to $1.36 billion in the third quarter. Both figures topped analysts’ estimates compiled by Visible Alpha.
CEO Jay Schottenstein told investors on the company’s earnings call that its results benefited “from the success of our recent marketing campaigns, which have driven engagement, attracting new customers.” American Eagle was “encouraged by the impact of the campaigns and collaborations with Sydney Sweeney and Travis Kelce, and now holiday gifting with Martha Stewart,” Schottenstein said, according to a transcript provided by AlphaSense.
Why This Is Significant
After spending most of the year in negative territory, enthusiasm for American Eagle’s celebrity campaigns have helped inject some enthusiasm back into the stock, bringing it back into positive territory for the year, though some on Wall Street have raised concerns about whether the company can sustain that momentum.
American Eagle had a record-setting Thanksgiving weekend, Schottenstein said, and “the fourth quarter is off to an excellent start.” The company now sees full-year adjusted operating income of $303 million to $308 million, up from the previous outlook of $255 million to $265 million, and comparable store sales growth in the low-single digits, compared to a flat forecast earlier.
With Wednesday’s gains, shares of American Eagle are up nearly 45% for 2025.
