American Eagle Outfitters (AEO) shares jumped 26% in premarket trading Thursday after its bold marketing moves paid off with a surge in new customers. The apparel retailer credited its controversial \u201cGreat Jeans\u201d campaign featuring actor Sydney Sweeney and a collaboration with NFL star Travis Kelce\u2019s Tru Kolors brand for fueling unprecedented engagement.<\/p>\n\n\n\n
The Sweeney-led ads sparked backlash on social media over perceived racial undertones, but Chief Marketing Officer Craig Brommers said the results spoke for themselves: more than 700,000 new customers and 40 billion impressions since the campaigns began. \u201cSydney Sweeney Has Great Jeans is not going anywhere,\u201d Brommers said, noting the actress will remain central to the company\u2019s strategy through the year.<\/p>\n\n\n\n
Partnerships with celebrities like Sweeney and Kelce are part of American Eagle\u2019s push to resonate with Gen Z shoppers, many of whom are tightening budgets in a challenging economy. By aligning with cultural figures who dominate fashion and sports conversations, the company is betting it can keep demand strong despite consumer headwinds.<\/p>\n\n\n\n
Analysts are taking notice. eToro\u2019s Lale Akoner said the company\u2019s second-quarter results \u201cproved marketing momentum is translating into sales,\u201d easing concerns about execution. Barclays analyst Adrienne Yih called the collaborations \u201cgenius,\u201d predicting they will drive meaningful traffic during the holiday season, especially with the NFL calendar in play.<\/p>\n\n\n\n
American Eagle forecast flat annual comparable sales, slightly better than analysts\u2019 expectations of a decline. Shares traded at $17.09 in premarket Thursday, with short interest standing at 16.6% of public float, according to LSEG data.<\/p>\n\n\n\n
With celebrity-backed campaigns firmly in motion and a competitive forward price-to-earnings multiple of 13.05, American Eagle appears poised to keep outperforming rivals Abercrombie & Fitch and Urban Outfitters as it heads into the crucial holiday quarter.<\/p>\n\n\n\n