American Eagle Stock Jumps as High-Profile Marketing Fuels Holiday Momentum

Key Moments

Marketing Campaigns Power Traffic and Outlook Upgrade

Shares of American Eagle Outfitters jumped nearly 15% in early trading on Wednesday after the company lifted its full-year sales forecast, citing strong in-store traffic during the important holiday period driven by its viral Sydney Sweeney jeans campaign.

The “Great Jeans” advertisement, released in July and featuring the “Euphoria” actor, has been a key driver of shopper interest. The campaign even drew praise from U.S. President Donald Trump, helping keep the brand in the broader cultural conversation.

Since September, American Eagle’s stock has gained almost 60%, reflecting investor confidence in the impact of its marketing and brand initiatives.

Celebrity Partnerships and Brand Collaborations Boost Engagement

Analysts at Jefferies noted that American Eagle’s promotions built around Sydney Sweeney, along with a collaboration involving NFL player Travis Kelce’s clothing line Tru Kolors, have significantly increased customer engagement and enhanced brand visibility.

These initiatives have supported the company’s efforts to stand out in a crowded apparel landscape, particularly as it seeks to capture more spending from higher-income consumers.

Holiday Performance and Strategic Shift to Affluent Shoppers

The company’s improved outlook follows the critical five-day Thanksgiving shopping stretch, a period that saw a notable increase in online purchases from more affluent customers. This trend emerged despite mixed performance across the broader retail sector.

American Eagle’s recent strategic move to focus more on these higher-spending shoppers has helped it better manage a challenging retail backdrop characterized by inflation and trade tensions.

Upgraded Holiday Sales Guidance

American Eagle now expects comparable sales in the holiday quarter to rise between 8% and 9%. That compares with analysts’ expectations for a 2.2% increase, based on data compiled by LSEG.

Management signaled that more aggressive advertising will remain central to its strategy. “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.

Barclays analysts echoed that view, stating in a note: “American Eagle will have to continue to invest in marketing spend to continue to drive share gains on top of these successes.”

Valuation and Peer Comparison

Year to date, American Eagle’s stock has advanced about 25%. The shares currently trade at a forward price-to-earnings multiple of 14.74, placing the retailer at a premium to several peers.

With a valuation above Abercrombie & Fitch’s 9.86 and Urban Outfitters’ 13.63, the market is assigning a higher multiple to American Eagle, reflecting expectations that its current marketing successes and focus on affluent shoppers can sustain growth momentum.