American Eagle Outfitters soars to 8-month high as Sydney Sweeney ad sweetens results
Sep. 04, 2025 9:52 AM ET
By: Sinchita Mitra, SA News Editor
American Eagle Outfitters (NYSE: AEO) stock hit a nearly eight-month high on Thursday after the apparel maker said the advertising campaign starring actress Sydney Sweeney gave its brand and business a reset.
The apparel company has seen a fair bit of controversy recently owing to the Sweeney ad. The “Sydney Sweeney has Great Genes Jeans” ad generated a lot of debate on both sides of the political aisle, with some accusing the company of endorsing eugenics and white supremacy, while others considered the public outcry “cancel culture run amok.”
The company soared 31.8% to ~$18 as of 9:37 am ET, touching its highest levels since December 10, when it touched $18.09.
For the reported quarter, the apparel retailer earned a profit of $0.45 per share, more than double what Wall Street expected and 15% better than a year ago. Sales were down 1% to $1.28B but exceeded estimates by $40M.
For the current and fourth quarter, American Eagle (NYSE: AEO) expects to see gross margin decline from the same quarters last year, while operating income is expected to be ~$54M for Q3 and $56M for Q4.
For FY25, gross margin will also decline year-over-year, with operating income within a range of $255M to $265M.
The Relative Strength Index (RSI) for American Eagle Outfitters ( AEO), calculated over the last 14 days and smoothed across a 250-day period, is 61.5. An RSI reading above 70 is considered an overbought level.
The firm's price-to-earnings ratio for 2026, based on Seeking Alpha's consensus earnings estimates, stands at 12.22. |
