American Eagle $AEO ( ▲ 0.29% ) is ripping higher after its Sydney Sweeney campaign went from internet spectacle to real-world sales engine. The retailer delivered Q3 revenue of $1.36 billion, topping expectations of $1.32 billion, and posted adjusted earnings of $0.53 per share versus the Street’s $0.44 estimate.
Management says the momentum is carrying into the rest of the year. Same-store sales are now expected to grow in the low single digits instead of flatlining, giving the company enough confidence to lift its full-year outlook. Shares are trading sharply higher in early action.
CEO Jay Schottenstein pointed to improvements across merchandising, marketing, and operations as key drivers of the turnaround. He also called out the “Sydney effect,” saying the jeans created for Sweeney sold out in two days. The ad campaign featuring her even caught the president’s attention and was labeled the “hottest” ad running at the time.
American Eagle has leaned heavily into celebrity-driven buzz. Alongside Sweeney, the company recently teamed up with Taylor Swift’s fiancé, Travis Kelce, and says the two partnerships generated more than 44 billion impressions.