American Eagle's share price surged nearly 40% on September 4 following management’s confirmation of strong sales momentum tied to recent celebrity campaigns. The stock opened at $13.62 on the New York Stock Exchange and closed at $18.79, marking one of its sharpest single-day rallies in years.
The move followed comments from CEO Jay L. Schottenstein, who said that second-quarter sales linked to campaigns with actress Sydney Sweeney and football player Travis Kelce had “exceeded expectations.”
Although American Eagle released its fiscal Q2 results on September 3, which beat profit estimates, shares had risen only about 1% that day. The surge came a day later as investors reacted to new details about campaign performance, which fell outside the reporting period.
Market capitalization now stands near $3.26 billion and may climb further, as pre-market trading on September 5 suggested continued buying interest.
The denim campaign fronted by “Euphoria” star Sydney Sweeney attracted widespread attention both for its commercial results and public criticism. Progressive commentators and academics condemned the tagline “great genes/jeans,” calling it insensitive and linking it to eugenics-era language. Some branded the campaign a misstep, citing a lack of diversity in its presentation.
Despite criticism, American Eagle reported rapid sell-outs of Sweeney’s curated “Syd’s Picks” collection, with some items disappearing within a day. Management confirmed that the campaign is ongoing and will expand with new elements. Chief Marketing Officer Craig Brommers highlighted its effectiveness, noting significant new customer acquisitions and brand engagement.
Adding to the debate, reports also resurfaced about Sweeney’s Republican voter registration in Florida, though the actress herself has not addressed it publicly. Critics predicted the controversy would weigh on sales, yet the market reaction indicates otherwise.
Alongside Sweeney, American Eagle introduced a campaign in August with Kansas City Chiefs tight end Travis Kelce, whose engagement with Taylor Swift further amplified public interest. According to company disclosures, the two campaigns combined generated over 40 billion impressions and added more than 700,000 customers within six weeks.
Quarterly revenue was $1.28 billion, down 1% from a year earlier but $40 million above consensus estimates. Gross margin rose slightly to 38.9%, while diluted earnings per share increased 15% to $0.45. The company now expects comparable sales growth in the low single-digit range through year-end, supported by continued marketing momentum.
Analysts, however, remain cautious. Running Point Capital’s Michael Ashley Schulman noted that American Eagle trades at nearly 17x forward earnings, compared to peers Abercrombie & Fitch at 8x and Urban Outfitters at 12x. Short interest above 18% also suggests ongoing bearish sentiment. Bank of America reiterated its “Underperform” rating, citing potential margin pressures from tariffs despite near-term strength.
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