If you were of a certain age in the 1990s, American Eagle was one place to go if you wanted to rock a grunge or lumberjack chic look — a flannel layered on top of a tee and jeans.
The mall-based retail giant was also one of my favorite destinations for a simple, relaxed look of white cotton shirts and denim, a look that’s undergoing a resurgence in 2025.
That resurgence and savvy new partnerships with superstars Sydney Sweeney and Travis Kelce have kickstarted interest in American Eagle. And despite some Sweeney controversy early on, it’s quickly becoming a darling of Main Street shoppers and Wall Street investors.
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American Eagle navigates shifting consumer trends
It’s no secret that many malls are struggling. Instead of spending hours wandering traditional indoor malls, shoppers have shifted toward stand-alone and outdoor shopping centers — bad news for brands like American Eagle, which spent decades establishing an indoor mall footprint.
The trend has been amplified because of growing online shopping trends that have pulled hundreds of billions of dollars in sales away from brick-and-mortar stores.
In Q2 consumers spent $304.2 billion online, up 5.3% year over year, while total retail sales were $1.9 trillion, up just 3.9%. According to the Census Bureau, e-commerce now accounts for more than 16% of all retail sales in the U.S.
In response, American Eagle has increasingly embraced an online strategy, focusing on digital, mobile and social channels to drive e-commerce revenue while closing unprofitable American Eagle stores and opening Aerie and Offline locations.
American Eagle’s store count fell to 840 in 2024, down 11% from 940 in 2019. Thanks to new Aerie and Offline stores, the companywide store count has increased 8.7% to 1,172 stores from 1,078 in 2020.
American Eagle’s store count by year:
- Fiscal Year 2020: 1,078 total stores
- Fiscal Year 2021: 1,133 total stores
- Fiscal Year 2022: 1,175 total stores
- Fiscal Year 2023: 1,182 total stores
- End of Fiscal Year 2024: 1,172 total stores
The shift in focus doesn’t mean management has given up on its American Eagle brand, though. In fact, it’s launched two massive ad campaigns this year featuring the highly popular personalities Sydney Sweeney and Travis Kelce.
American Eagle finds footing thanks to Sydney Sweeney
The “Sydney Sweeney Has Great Jeans” ad campaign for fall 2025 kicked off in July, and so far it’s driving significant interest for American Eagle.
“The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand. We saw a record-breaking new customer acquisition and brand awareness, cutting across age demographics and genders,” said CEO Jay Schottenstein during the company’s second-quarter conference call with investors.
“Sweeney’s Signature jeans sold out within a week and some products within 1 day. Demand for her curated online shop of Syd’s Picks has been very strong,” said President Jennifer Foyle.
The demand has come despite controversy over the ad campaign’s use of wordplay on “jeans” and “genes.”
In one ad, Sweeney says, “Genes are passed down from parents to offspring, often determining traits like hair color, personality, and even eye color. My jeans are blue.”
The ad drew criticism for not being seen as inclusive, given Sweeney’s blue-eyed, blond-haired appearance.
American Eagle defended the ad. The controversy has mostly subsided and the company says its ads have generated 40 billion impressions overall.
“The campaign has generated unprecedented new-customer acquisition,” said Chief Marketing Officer Craig Brommers. “This momentum is national, and it is pervasive. We’ve experienced denim sellouts of items that Sydney has worn.”
Sydney Sweeney ad campaign timeline:
- July 23, 2025: American Eagle officially announces the Sydney Sweeney campaign to reinforce its leading Gen Z denim brand position.
- July 2025: The “Sydney Sweeney Has Great Jeans” campaign goes live, including on social media, and with high-profile placements, including the Las Vegas Sphere.
- August 2025: The brand’s limited-edition “The Sydney Jean” is released.
Travis Kelce’s Tru Kolors sparks demand
The “AE x Tru Kolors by Travis Kelce” campaign is also off to an encouraging start.
The campaign launch has benefited from coinciding with the NFL season kickoff and, more specifically, surging search interest following Kelce’s high-profile engagement to the pop superstar Taylor Swift.
Kelce helped coordinate and design the collection.
“I started Tru Kolors in 2019 on the foundation of showing up authentically and having fun with style, and we wanted this collab to reflect that same energy,” said Kelce.
The campaign includes drops in August and September, and management says foot traffic is benefiting.
“‘AE x Tru Kolors by Travis Kelce’ has received tremendous engagement, fueling higher traffic and new customers. Product sell-throughs have been strong,” said Foyle.
Travis Kelce ad campaign timeline:
- Late 2024 through mid-2025: Travis Kelce works with the retailer as a hands-on creative director for the collection.
- August 27, 2025: American Eagle officially announces limited-edition “AE x Tru Kolors by Travis Kelce” following Kelce’s engagement to Taylor Swift.
- August 27, 2025: The first items in the 90-piece collection become available in stores and online.
- September 24, 2025: The final drop of the collection is scheduled to be released.
Wall Street’s reaction sends American Eagle stock soaring
American Eagle’s resurgence hasn’t been lost on investors, who rushed to buy shares this week after it reported its latest financial results, showing revenue and profit were higher than Wall Street analysts expected.
The Pittsburgh company’s fiscal-second-quarter sales were $1.28 billion, down 1% year over year, but the figure was the second-highest in its history and was above analysts’ estimates of $1.24 billion.
“-1% was better than guidance of -5% given execution on moving through inventory at better [merchandise] margins following the 1Q write-down. The improvement specifically at Aerie was an encouraging proof point that [management] was able to quickly improve product following the 1Q missteps,” said Bank of America retail analyst Christopher Nardone.
Additionally, cutting costs, buying back 10% of its shares outstanding, and stiff negotiations with suppliers to offset tariffs helped earnings per share grow 15% year over year to 45 cents. Wall Street was forecasting profit of just 21 cents.
The company saw a 3% increase in comparable-store sales at Aerie thanks to rising interest in intimates following the launch of its Parisian Romance lineup. Management says tailwinds from the Sweeney and Kelce campaigns at American Eagle stores have strengthened in August.
“I was pleased to see traffic momentum built throughout the second quarter has continued into August,” said Schottenstein. “We have seen periods of very strong demand from both campaigns fueling positive traffic in August, which was up consistently throughout the month.
As a result, the company expects comparable-store sales to be up low single digit percent for the rest of 2025.
The company’s results and guidance sent American Eagle shares surging 33% to $18.02 on Sept. 4.
American Eagle Outfitters: A storied retail icon
1977: Jerry and Mark Silverman start American Eagle Outfitters as a subsidiary of Silverman’s Menswear Inc., an outdoor and leisure apparel brand for hikers and campers to compete against legendary brands like L.L. Bean.
1980: The Silvermans sold 50% of American Eagle to the Schottenstein family amid financial troubles.
1991: After a decade of expansion, American Eagle struggles again financially as fashion trends shift away from “rugged” outdoor apparel. The Schottenstein family acquires the rest of AEO from the Silverman family.
1992: The retailer shifts to private-label, casual apparel for teens and young adults aged 16 to 34, particularly denim, khakis and graphic tees.
1994: American Eagle becomes a publicly traded company following an initial public offering on the NYSE.
1998: AEO launches its e-commerce website, ae.com.
2006: American Eagle launches Aerie, a lingerie and loungewear retail chain targeting young women aged 15 to 22.
2014: Aerie rolls out its #AerieREAL campaign, featuring unretouched models of all body types, driving sales growth.
2020: The Offline by Aerie activewear and athleisure brand is launched, targeting rivals like Lululemon.
2025: American Eagle launches collaborations with the “White Lotus” star Sydney Sweeney and National Football League star Travis Kelce.
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