American Eagle’s partnership with Sydney Sweeney deemed its best campaign yet, leading to positive earnings beating expectations. Despite controversy, new customers were acquired through recent collaborations with Travis Kelce. Full-year guidance re-issued with improved comparable sales forecast. Net income for the quarter was $77.6 million, with sales slightly down.

The Sweeney campaign led to denim sellouts and increased customer engagement, while the partnership with Kelce resulted in three times more sales in one day than past collaborations. American Eagle aims to stay relevant in a competitive market with soft spending, facing competition from Abercrombie & Fitch, Gap, and Levi’s.

Tariff impacts have affected American Eagle’s outlook, with efforts to reduce reliance on China. Despite challenges, the retailer continues to innovate with celebrity partnerships to drive profitability and long-term growth.

Read more at CNBC: American Eagle Outfitters (AEO) earnings Q2 2025