Shares of US fashion retailer American Eagle soared by 25% in after-hours trading after the company credited its recent marketing partnerships with actress Sydney Sweeney and NFL star Travis Kelce for driving renewed customer engagement. Chief executive Jay Schottenstein said the firm’s second-quarter results exceeded expectations, and he projected further sales growth as the campaigns continue to gain traction. The company, which had been facing a sales slump earlier in the year, now forecasts a return to growth in the “low single digits” over the coming months.

One of the biggest sparks came from the “Great Jeans” ad featuring Sweeney, which quickly went viral online and across storefronts. The ad played on the word “genes,” drawing both intrigue and criticism for its perceived undertones. Despite backlash, the campaign brought enormous visibility, amassing around 40 billion impressions and selling out Sweeney’s signature jeans within a week. American Eagle maintained that the advert was solely a reference to its denim, defending the strategy as a deliberate reset of the brand’s image to appeal to younger shoppers.

Alongside the buzz from Sweeney, the company announced a collaboration with Kelce, which coincided with heightened media attention following news of his engagement to pop star Taylor Swift. Executives said the celebrity partnerships have boosted awareness and sales across categories ranging from jeans to underwear, helping the company regain momentum. Schottenstein noted that the autumn shopping season was already off to a positive start, further lifting investor confidence in the company’s turnaround.

The campaigns, however, have not been without controversy. The Sweeney ad drew criticism from those who linked it to eugenics debates, while others questioned the racial and cultural undertones of American Eagle’s branding strategy. Yet, the brand has stuck by its approach, saying the goal was to create bold, memorable campaigns capable of cutting through an increasingly competitive fashion market. Even US political figures weighed in, with the ad sparking commentary from the White House and beyond.

Looking ahead, American Eagle acknowledged looming challenges, including \$70 million in additional tariff costs expected in the second half of its financial year. Executives said they had managed to cut those projected expenses in half by renegotiating with suppliers and shifting sourcing strategies. While the company is raising some prices, management stressed that cost reductions, rather than price hikes, remain its main strategy for offsetting tariffs. Investors appear optimistic that, with celebrity influence and careful cost management, American Eagle could sustain its rebound through the end of the year.

Source: BBC