American Eagle Outfitters Soars with Celebrity Campaigns

American Eagle Outfitters experienced a significant boost, with shares climbing nearly 24% in premarket trading due to successful advertising campaigns featuring actor Sydney Sweeney and NFL player Travis Kelce. These celebrity endorsements have spurred demand, a welcome trend as the retail sector navigates economic uncertainty that has curbed discretionary spending.

The company's 'Great Jeans' campaign, led by Sweeney, has proven particularly impactful, marking an "unprecedented" surge in new customer acquisitions, according to Craig Brommers, the chief marketing officer. In an effort to attract younger demographics, American Eagle has also collaborated with Kelce's Tru Kolors, tennis prodigy Coco Gauff, and actor Jenna Ortega, further aligning itself with Gen Z tastes.

Stock analysts note that the recent 25% rise in extended trading is indicative of a market belief in the staying power of this celebrity-driven demand, potentially carrying through the holiday season. American Eagle has adjusted its outlook, noting a potential rise in quarterly comparable sales, contrary to analysts' earlier expectations of a downturn. The company has, however, retracted its annual forecasts, aiming for steady sales figures amidst the evolving retail landscape.

(With inputs from agencies.)