Item 1 of 2 An electronic billboard displays an American Eagle ad campaign featuring Sydney Sweeney, in New York City, U.S., August 21, 2025 REUTERS/David ‘Dee’ Delgado/File Photo
[1/2]An electronic billboard displays an American Eagle ad campaign featuring Sydney Sweeney, in New York City, U.S., August 21, 2025 REUTERS/David ‘Dee’ Delgado/File Photo Purchase Licensing Rights, opens new tab
Dec 3 (Reuters) – Shares of American Eagle Outfitters
jumped nearly 15% in early trading on Wednesday after its viral Sydney Sweeney jeans campaign continued to drive in-store traffic during the key holiday season, prompting the retailer to raise its annual sales forecast.
Shares of the company are up almost 60% since September. The “Great Jeans” ad, released in July and featuring “Euphoria” actor, even garnered praise from U.S. President Donald Trump.
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For American Eagle, successful campaigns with Sweeney, a collaboration with NFL player Travis Kelce’s clothing brand Tru Kolors have driven up engagement and boosted visibility, according to analysts at Jefferies.
The upbeat forecast follows the crucial five-day Thanksgiving shopping event, which saw a surge in online spending from more affluent shoppers, despite mixed results in the broader retail industry.
The company’s recent pivot to cater to these affluent buyers has helped it navigate a broader retail slowdown driven by inflation and trade tensions.
American Eagle now expects holiday quarter comparable sales to grow between 8% and 9%, compared with analysts’ estimates of a 2.2% rise, according to data compiled by LSEG.
“As a company, we’re leaning into advertising. We need to compete when we see what our competition is doing,” said American Eagle executive Jennifer Foyle.
“American Eagle will have to continue to invest in marketing spend to continue to drive share gains on top of these successes,” Barclays analysts said in a note.
The stock has risen about 25% so far this year, and trades at a 14.74 forward-price-to-earnings multiple, above peers Abercrombie & Fitch’s
9.86 and Urban Outfitters’
13.63.
Reporting by Kanchana Chakravarty and Chandni Shah in Bengaluru; Editing by Leroy Leo and Vijay Kishore
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