Good Jeans, Great Results: AEO Shares Spike 23% After Earnings
$American Eagle Outfitters(AEO)$ American Eagle Outfitters (AEO) saw its stock jump 23% following its second-quarter earnings release, driven by stronger-than-expected results and a breakout marketing campaign.
Total revenue came in at $1.28 billion, down 1% year-over-year but ahead of analysts’ expectations of $1.24 billion. Comparable sales declined 1%, beating the anticipated 2.4% drop. Adjusted earnings per share were $0.45, more than double the expected $0.21.
CEO Jay Schottenstein credited the upbeat start to the fall season to improved product offerings and high-impact marketing collaborations with Sydney Sweeney and Travis Kelce. Sweeney's “Good Jeans” campaign, which sparked widespread online debate, drove massive brand visibility. The featured denim collection reportedly sold out within a week, with some items gone in just one day.
During the earnings call, American Eagle revealed the campaign generated a staggering 40 billion impressions, significantly boosting customer engagement and brand awareness. Executive Creative Director Jennifer Foyle confirmed plans to build on this momentum in future quarters.
Notably, this marks a sharp turnaround from the company's May earnings, when it withdrew full-year guidance citing a “challenging period.” That guidance has now been reinstated, signaling renewed confidence from management.
In summary, despite a slight dip in revenue, American Eagle's strategic marketing and product execution reignited investor optimism, making it one of the standout retail stories of the quarter.
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- Merle Ted·2025-09-06Bears couldn't take it down. To their credit they got it turning sideways and there's a buy the dip mentality. Only one dip to buy and then sideways.LikeReport
- Mortimer Arthur·2025-09-06This stock is rated a hold until all the big boys take their profits lol.LikeReport
- Norton Rebecca·2025-09-05AEO doubled EPS! Reinstated guidance,this turnaround’s real!LikeReport
- Reg Ford·2025-09-05AEO’s 23% pop! “Good Jeans” campaign worked,grab gains fast!LikeReport
- DrewStrong·2025-09-05Wow, what an incredible turnaround! 🎉 [Great]LikeReport