American Eagle Outfitters Stock Surges 25% on Strong Q2 Earnings and Marketing Success

American Eagle Outfitters (AEO) shares jumped 25% in extended trading after the apparel retailer reported better-than-expected Q2 FY2025 results. Revenue dipped slightly to $1.28 billion but beat estimates, while adjusted EPS ROSE 15.4% to $0.45. The company reinstated full-year guidance, crediting improved product offerings and the success of its fall denim campaign featuring actress Sydney Sweeney.

The Aerie brand posted 3% comparable sales growth, signaling resilience in a challenging retail environment. AEO's recent collaboration with NFL star Travis Kelce—now engaged to Taylor Swift—also contributed to positive sentiment. The retailer has been navigating merchandising missteps, tariff pressures, and macroeconomic headwinds affecting discretionary spending.