American Eagle Outfitters saw its shares surge following better-than-expected quarterly sales figures. The announcement comes weeks after the company faced a social media backlash related to its advertising campaign featuring Sydney Sweeney. American Eagle Outfitters is an apparel and accessories retailer that targets teens and young adults, operating stores in the United States and internationally. The company also sells its products online.
The retailer reported a 1 per cent drop in same-store sales for the quarter ending August 2nd. However, this result still surpassed average analyst estimates compiled by Bloomberg. Revenue figures also exceeded expectations, contributing to the positive market reaction.
Chief Executive Jay Schottenstein credited the company’s recent performance to stronger product offerings and the success of its marketing campaigns with celebrities like Sydney Sweeney and Travis Kelce. He noted an increase in customer awareness, engagement, and comparable sales driven by these initiatives. Shares of American Eagle rose more than 25 per cent in post-market trading on Wednesday.
American Eagle has been navigating a competitive landscape with rivals such as Gap, Levi Strauss, and Abercrombie & Fitch. The company has faced declining sales for four consecutive quarters on an annual basis, prompting it to experiment with celebrity-driven advertising. Its “Sydney Sweeney has great jeans” campaign, launched in July, drew criticism and even captured the attention of former President Donald Trump.
