American Eagle's Shares Surge After Celebrity Campaigns Drive 40 Billion Impressions and Boost Customer Engagement.

American Eagle Outfitters (NYSE:AEO) shares surged 30% after the retailer credited its Q2 strength to celebrity advertising campaigns, citing 40 billion impressions. CEO Jay Schottenstein said the campaigns attracted a record number of new customers and improved store traffic. The strategy contrasts with the uneven recovery in the retail industry and demonstrates how targeted partnerships can pay off in a competitive market.

American Eagle Outfitters (NYSE:AEO) shares surged 30% after the retailer credited its Q2 strength to celebrity advertising campaigns, citing 40 billion impressions. CEO Jay Schottenstein said the campaigns attracted a record number of new customers and improved store traffic. The strategy contrasts with the uneven recovery in the retail industry and demonstrates how targeted partnerships can pay off in a competitive market.

The company reported $1.28B in revenue for Q2 2025, marking the second highest ever posted for a second quarter, despite a 1% year-over-year (YOY) decline [1]. Operating income improved by 2% to $103 million, with diluted EPS increasing by 15% YOY. The gross margin expanded to 38.9%, compared to 38.6% in the prior year [1].

American Eagle Outfitters' marketing campaigns with Sydney Sweeney and Travis Kelce generated 40 billion impressions and attracted 700,000 new customers, boosting brand awareness and sales [1]. The company expects these campaigns to continue throughout the year, with a significant portion of advertising expenses in Q3 and some carryover into Q4 [1].

The retailer also faced challenges due to tariffs, with an estimated $180 million unmitigated impact expected for the back half of the year. However, the company successfully mitigated the impact to a $70 million projection, using strategies such as rebalancing country of origin, cost negotiations, and pricing [1]. Long-term plans include optimizing sourcing, leveraging vendor relationships, and rebalancing fixed/variable expenses through store closures and fleet optimization [1].

American Eagle Outfitters' performance in the second quarter highlights the potential of targeted marketing campaigns to drive growth in the competitive retail landscape. The company's ability to mitigate tariff impacts and maintain operational efficiency will be crucial for sustaining this momentum.

References:

[1] https://www.ainvest.com/news/american-eagle-outfitters-q2-2025-earnings-call-contradictions-emerge-tariff-mitigation-marketing-campaigns-inventory-management-sg-leverage-product-timelines-2509/