American Eagle shares jumped more than 20 percent in after-hours trading on Wednesday after the company reported second-quarter results that exceeded Wall Street expectations. Executives credited high-profile marketing campaigns—including a collaboration with actress Sydney Sweeney—for driving increased customer engagement and sales.
The Pittsburgh-based company posted operating income of $103 million for the quarter that ended on Aug. 2, representing a 2 percent increase from the previous year on revenue of $1.28 billion. The performance marked the second-highest enterprise revenues ever recorded for a second quarter in company history.
"We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions and well-managed expenses, all of which exceeded our expectations," said Jay Schottenstein, executive chairman and chief executive officer.
"Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales," Schottenstein said.
"She's a registered Republican?" Trump said while speaking to reporters in Pennsylvania in early August. "Oh. Now I love her ad! Is that right? Sydney Sweeney. … You'd be surprised how many people are Republicans. If Sydney Sweeney is a registered Republican, I think her ad is fantastic."
Financial performance across American Eagle's brand portfolio showed mixed results. While total comparable sales decreased 1 percent, the company's Aerie brand posted 3 percent growth in comparable sales, offsetting a 3 percent decline at the flagship American Eagle brand.
Total ending inventory has increased 8 percent to $718 million, with unit growth of 3 percent. American Eagle attributed the cost increase largely to tariff impacts, which CFO Michael Mathias told investors during a May earnings call would cost $40 million annually.
Looking ahead, American Eagle provided full-year operating income guidance of $255 million to $265 million. The company expects capital expenditures of approximately $275 million for 2025, with $133 million spent through the first half of the year.
The strong quarterly performance represents a turnaround from earlier in 2025. First-quarter results missed expectations with the company losing $85 million during the three months ending in May, while sales fell 3 percent.
American Eagle operates stores across the United States, Canada, and Mexico, with merchandise available in more than 30 countries through licensing partners. The company's portfolio includes American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder, and Unsubscribed brands.