Sydney Sweeney’s Viral ‘Great Jeans’ Ad Powers This Clothing Retailer’s Q2 Results, Fuels 1,225% Surge In Retail Chatter

Barclays noted that American Eagle's two large-scale successful marketing campaigns with Sweeney and Kelce are "driving the surge" at the company’s stores.

American Eagle Outfitters (AEO) stock received multiple price target hikes from Wall Street, with retail chatter on Stocktwits surging by 1,225% following the apparel maker's significant boost in demand stemming from its latest initiatives, including partnerships with actor Sydney Sweeney and football star Travis Kelce.

Shares of the company jumped over 27% in premarket trading on Thursday after American Eagle forecast third-quarter comparable sales above Wall Street expectations.

Telsey Advisory Group raised its price target to $18, up from $12, and maintained a ‘Market Perform’ rating. Dana Telsey of Telsey Advisory Group said that following a choppy fiscal 2024 and challenging start to fiscal 2025 in the first quarter, American Eagle has demonstrated signs of stabilization and recovery in the second quarter, posting better-than-expected results across the board. 

“Looking ahead, boosted by recent buzz around the Sydney Sweeney and Travis Kelce marketing campaigns as well as a strengthened assortment, AEO’s fall season is off to a positive start,” Dana Telsey said.

A bullish user on Stocktwits noted that the stock could continue to rise higher in Thursday’s trading.

Retail sentiment on American Eagle jumped to ‘extremely bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Chief Marketing Officer Craig Brommers said that Sweeney will be part of the company’s team into the back half of the year, and that American Eagle will introduce new elements of the campaign going forward.

Barclays raised its price target on American Eagle to $14 from $9 and maintained an ‘Underweight’ rating, according to TheFly. The firm says American Eagle's two large-scale successful marketing campaigns with Sweeney and Kelce are "driving the surge" at the company’s stores.

American Eagle’s shares have declined over 18% this year and have fallen nearly 30% in the last 12 months.

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