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American Eagle Outfitters saw its stock climb nearly 25% in after-hours trading Wednesday after reporting stronger-than-expected earnings.

The retailer credited its recent celebrity-driven campaigns featuring actress Sydney Sweeney and NFL star Travis Kelce for reviving brand momentum.

"The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales," CEO Jay Schottenstein said in the company's earnings release.

According to CNN, the campaigns generated massive attention. American Eagle's chief marketing officer Craig Brommers told analysts that Sweeney's denim collaboration sold out within a week, with some pieces gone in just one day.

"(Sweeney) is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition," Brommers said.

Executive creative director Jennifer Foyle added that the Sweeney and Kelce promotions combined have already reached about 40 billion impressions. "As we look ahead, our plan is to build on this momentum," Foyle said.

The ads, however, have not been without controversy. Sweeney's "Good Jeans" spot, in which she played on the words "genes" and "jeans," sparked political debate online.

Trump Praises American Eagle Ad Campaign Amid Mixed Reactions

Some critics accused the campaign of leaning into problematic undertones, while others, including former President Donald Trump, praised the ads as bold and effective.

Despite the heated discussion, the attention clearly benefited American Eagle's bottom line.

For the second quarter ending August 2, 2025, American Eagle reported total revenue of $1.28 billion, a decline of 1% compared with the same period last year.

Still, the company delivered an operating profit of $103 million, up 2% year-over-year. Diluted earnings per share came in at 45 cents, a 15% increase, Variety reported.

Comparable sales also slipped 1%, showing that while buzz is high, long-term sales growth remains a challenge.

The company is still dealing with external pressures. It expects tariffs to impact costs by as much as $20 million in the third quarter and up to $50 million in the fourth. Executives said price increases will continue to help offset these expenses.

Alongside Sweeney's campaign, American Eagle recently launched a collaboration with Kelce's lifestyle brand Tru Kolors, timed with the athlete's high-profile engagement to singer Taylor Swift.

The company believes the partnership will further strengthen its connection with younger shoppers.