American Eagle rides celebrity hype as Sydney Sweeney, Travis Kelce spark viral sales

American Eagle Outfitters’ shares rose by 25% in after-hours trading following a positive earnings report. CEO Jay Schottenstein announced that the retailer’s second-quarter results exceeded expectations, attributing future growth to successful marketing campaigns featuring celebrities Sydney Sweeney and Travis Kelce. The company reported record-breaking customer acquisition and enhanced brand awareness during this period.

The marketing campaign for its denim collection, headed by Sydney Sweeney, sparked controversy due to its portrayal of beauty standards, yet it generated around 40 billion impressions and led to the immediate sell-out of Sweeney’s signature jeans. American Eagle’s brand president noted a substantial 700,000 increase in customer counts during the quarter. Chief Marketing Officer Craig Brommers emphasized the brand’s strategy to leverage this momentum throughout the year.

Additionally, American Eagle recently announced a partnership with athlete Travis Kelce, coinciding with his engagement to pop star Taylor Swift. Executives noted that this collaboration is driving significant interest in the men’s clothing line.

Despite a 1% decline in sales during the May-July period, executives predict a sales growth in the “low single digits” for the near future, attributing it to increasing interest across various product categories. They also expect tariffs to lead to additional costs of approximately $70 million in the second half of the financial year, though this figure is lower than initially projected due to adjustments in sourcing.