American Eagle Stock Surges as Holiday Outlook Strengthens After Sydney Sweeney Campaign

American Eagle Outfitters saw its shares surge as much as 15% in extended trading on Tuesday after the apparel company delivered stronger-than-expected quarterly results and sharply raised its full-year outlook. The upbeat performance comes as the retailer enters the crucial holiday season with renewed momentum and heightened visibility from high-profile campaigns starring Sydney Sweeney and Travis Kelce.

Company Raises Guidance After Beating Wall Street Expectations

The teen and young-adult apparel chain now expects fourth-quarter comparable sales to rise between 8% and 9%, far ahead of analysts’ expectations of just over 2%, according to StreetAccount. American Eagle also lifted its full-year adjusted operating income forecast to $303 million to $308 million, up significantly from its previous range of $255 million to $265 million.

In the fiscal third quarter, which ended November 1, American Eagle exceeded Wall Street projections on both revenue and profit:

• Earnings per share: 53 cents vs. 44 cents expected
• Revenue: $1.36 billion vs. $1.32 billion expected

Net income rose to $91.34 million, up from $80.02 million a year earlier, while overall sales climbed about 6% to $1.36 billion.

Marketing Campaigns Drive Buzz, but Impact on AE Brand Still Modest

This quarter marked the first full period reflecting the company’s aggressive marketing push featuring Sweeney and Kelce. While the campaigns generated widespread attention, their direct impact on sales appears limited so far.

Comparable sales across the company grew 4%, outpacing StreetAccount’s 2.7% forecast. However, the growth was mostly driven by Aerie, American Eagle’s lingerie and activewear brand, which posted 11% comparable sales growth and a 13% jump in revenue.

At the flagship American Eagle brand—where the celebrity campaigns were concentrated—comparable sales rose just 1%, falling short of analysts’ projections of roughly 2%. The company noted that while the campaigns are “attracting more customers,” they have not yet translated into substantial revenue gains.

Still, profitability improved. American Eagle’s operating margin reached 8.3%, topping expectations and signaling efficiency improvements despite the hefty marketing spend.

Record Thanksgiving Weekend Boosts Holiday Confidence

American Eagle executives told CNBC that the company achieved record revenue in the third quarter, and that momentum carried into the current period. The retailer reported a record-breaking Thanksgiving weekend, reinforcing its optimistic view of holiday demand.

The strong performance adds American Eagle to a growing list of apparel retailers—alongside Abercrombie & Fitch, Gap, and Urban Outfitters—that have delivered better-than-expected results heading into the peak shopping season. Despite consumer pressure from inflation and tariffs, many discretionary retailers have remained resilient, benefiting from shoppers willing to spend where they see value.

Retail Sector Signals Positive Holiday Sales Outlook

Industrywide holiday forecasts have been mixed, but early indicators point to a solid start. The National Retail Federation reported stronger-than-anticipated turnout during the “Turkey 5” period—the five days spanning Thanksgiving through Cyber Monday.

For American Eagle, that strength appears to reinforce the company’s raised outlook and its expectation that holiday sales will outperform initial projections.

With improved margins, campaign-driven brand visibility, and robust early holiday foot traffic, investors appear increasingly confident that American Eagle is heading into its strongest seasonal stretch in years.