Shares in American fashion retailer American Eagle have jumped after the company said its partnership with celebrities Sydney Sweeney and Travis Kelce expected to drive strong sales.
The company’s stock soared 25% in after-hours trading Wednesday as its boss Jay Schottenstein said its second-quarter performanceExceed expectations”, predicting further success in sales, its viral advertising campaign enhancement.
American Eagle makes headlines Split “Great Jeans” ad Because its denim collection features Sweeney, it sparked debates about race and beauty standards.
The company also announced a partnership with athlete Kelce Participate in Popstar Taylor Swift.
Sales fell 1% during the May-July period after a 5% decline in the previous quarter, the company said on Wednesday.
But executives who took economic uncertainty as an example in May said they now expect sales to grow in the “low unit numbers” in the coming months as they purchased everything from denim to underwear.
Mr Schottenstein said the start of autumn was a positive start.
“We have seen an increase in customer awareness, engagement and comparable sales due to the drive of the product offering and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce.”
The Emmy-nominated actress’ reputation appeared in jeans commercials, saying: “Genes are passed from parents to offspring, often determining features like hair color, personality and even eye color. My jeans are blue.”
Viral ads seen online have attracted interest and attacks on storefronts and posters, as well as on social media throughout.
Some critics interpret advertising as a drama about eugenics, a belief that humans can be improved through selective reproduction.
American Eagle has been sticking with advertising, saying it refers only to the company’s jeans.
CMO Craig Brommers told financial analysts Wednesday that the sport was intended to be a “reset” for the company, a long-standing teen fashion staple that has entered the year amid a sales downturn.
The ad attracted about 40 billion impressions and helped Sweeney’s signature jeans sell out within a week after the campaign started.
The dispute even went to the White House. President Donald Trump Join the supporting actress.
“Registered Republican Sydney Sweeney has the hottest ads,” he wrote in his August Truth Social Post. “Go to ’em Sydney!”
A U.S. Hawks executive said in a call for earnings for the company in the second quarter that there are more stores along with Sweeney and Kelce to respond to whether the company can maintain its momentum.
The company also warned analysts that tariffs are expected to increase by about $70 million in the second half of its fiscal year. It said that as negotiations with suppliers reduced the cost and shifts to the source, those expenses have gone far more than half of the company’s initial estimates.
It also raised some prices, but executives say it is not the main way to reduce the impact of tariffs.
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