American Eagle inventory jumped on Wednesday after the retailer boosted its gross sales forecast because the attire firm continued to see site visitors enhance following its viral Sydney Sweeney denims marketing campaign.
The corporate’s inventory is up 136% over the previous six months, with a roughly 50% achieve within the final month and 19% rise within the final 5 days. That run was spurred by the discharge of American Eagle’s “Great Jeans” advert in July that featured Sweeney. It additionally had a excessive profile marketing campaign with NFL star Travis Kelce’s Tru Kolors clothes model.
American Eagle now expects vacation quarter comparable gross sales to develop between 8% and 9%, effectively above analysts’ estimates of a 2.2% rise, in keeping with information compiled by LSEG.
“I’m extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations – all having a positive impact,” stated American Eagle Outfitters CEO Jay Schottenstein, who leads the model’s dad or mum firm.
AMERICAN EAGLE CEO STANDS BY VIRAL SYDNEY SWEENEY ADS AFTER CONTROVERSY, WON’T BOW TO ‘FEAR’
American Eagle’s advert marketing campaign with Sydney Sweeney helped increase the model. (Sawayasu Tsuji/Getty Photos)
American Eagle’s income was up 6% within the third quarter, with complete comparable gross sales up 4%.
The corporate raised its outlook for the fourth quarter to mirror comparable gross sales rising within the vary of 8% to 9%, up from the low single digits.
The steering for working earnings was additionally elevated to a variety of $155 million to $160 million, up from $125 million to $130 million beneath the earlier forecast.
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Ticker Safety Final Change Change % AEO AMERICAN EAGLE OUTFITTERS INC. 24.48 +0.48
+2.02%
“Strong momentum has continued into the fourth quarter, including an excellent start to the holiday season,” Schottenstein stated.
“We delivered a record-breaking Thanksgiving weekend, led by an acceleration in demand across brands and channels and underscored by outstanding growth at Aerie and Offline,” he added. “We are focused on finishing the season strong and sustaining our success into 2026 and beyond.”
The Sweeney advert featured the star of “Euphoria” saying that, “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”
GAP, LUCKY BRAND LAUNCH DENIM JEAN CAMPAIGNS AFTER VIRAL AMERICAN EAGLE SYDNEY SWEENEY ADS
The Sweeney advert spurred a viral controversy, although American Eagle stood by the advert and has loved elevated gross sales in its wake. (Michael M. Santiago/Getty Photos)
Critics of the advert stated it promoted eugenics, claiming it promoted racist and regressive themes.
Schottenstein stood behind the advert and informed The Wall Road Journal, “You can’t run from fear. We stand behind what we did.”
He additionally informed the Journal that “we never would’ve done it” if he or his staff felt the advert was offensive.
The CEO famous the affect of the advert in feedback he made on the corporate’s quarterly earnings name in early September.
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“The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand,” Schottenstein stated. “We saw record-breaking new customer acquisition and brand awareness cutting across age demographics and genders.”
