American Eagle Outfitters on Sept. 3, 2025 said its advertising tie-up with actress Sydney Sweeney has driven customer growth and stronger traffic as the retailer posted fiscal Q2 results that beat analyst forecasts; shares rose more than 20% in after-hours trading.
Key Takeaways
- Q2 results: EPS 45 cents vs. 21 cents expected; revenue $1.28 billion vs. $1.24 billion expected.
- Reported net income was $77.6 million (45 cents per share); sales edged down from $1.29 billion a year earlier to $1.28 billion.
- The company gained roughly 700,000 new customers after the Sydney Sweeney and Travis Kelce collaborations.
- American Eagle re-issued full-year guidance; comparable sales now expected to be approximately flat versus a 0.2% decline analysts had predicted.
- Operating income outlook cut to $255–$265 million (previously $360–$375 million) due in part to tariff pressures; gross margin is expected to be down for the year.
- Marketing wins: denim styles tied to the Sweeney campaign sold out quickly; a Kelce drop produced three times the one-day sales of past collaborations.
- Campaign launched July 23 and has driven mid-single-digit comparable sales so far this quarter, by the company’s account.
Verified Facts
American Eagle reported net income of $77.6 million for the three months ending Aug. 2, 2025, equal to 45 cents per share. That compares with net income of $77.3 million, or 39 cents per share, in the prior-year quarter.
The company recorded revenue of $1.28 billion in the quarter, slightly below the prior-year $1.29 billion but above the Street consensus of $1.24 billion.
| Metric | Actual | Street |
|---|---|---|
| Earnings per share | 45¢ | 21¢ |
| Revenue | $1.28B | $1.24B |
The retailer says campaigns with Sydney Sweeney and Travis Kelce have produced customer acquisition, higher traffic and product sell-throughs: the Sydney Jacket and a custom Sydney Jean (with proceeds to Crisis Text Line) both sold out in one day, the company reported.
Context & Impact
American Eagle has been managing multiple headwinds this year, including prior merchandising missteps, consumer caution and an uncertain tariff environment. The company said it is reducing its reliance on China to under 10% of sourcing this year but still carries significant production in Vietnam and India, where reciprocal tariffs have emerged.
Tariffs are a primary driver of the revised operating-income outlook: management lowered its expected full-year operating income range to $255 million–$265 million from $360 million–$375 million, while maintaining that comparable sales should finish roughly flat for the year.
On the marketing side, the company is using high-profile talent to regain relevance among younger shoppers. Executions have produced clear sales spikes and inventory sellouts, but they also drew public debate over tone and messaging, creating a mix of amplification and controversy.
Competitive pressure remains strong from peers such as Abercrombie & Fitch, Gap and Levi’s, each running their own high-profile denim or lifestyle campaigns this season.
“The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns, we have seen an uptick in customer awareness, engagement and comparable sales,”
Jay Schottenstein, CEO
Unconfirmed
- Some news reports suggested traffic trends were weaker in August; American Eagle maintains channel traffic was “consistently positive” during the month.
- Critic claims that the campaign slogan carried specific political subtext remain contested and are framed differently across outlets.
Bottom Line
American Eagle’s Q2 beat and its high-profile marketing programs produced immediate commercial benefits—new customers, sellouts and a sharp stock reaction—while structural challenges, especially tariffs and margin pressure, temper the outlook. The company’s revised operating-income guidance and ongoing sourcing shifts will be key items to watch over the next quarters.