American Eagle Shares Surge After Upbeat Sales Forecast

New York - September 3, 2025 American Eagle Outfitters Inc. (NYSE: AEO) shares jumped sharply on Wednesday after the apparel retailer issued a stronger-than-expected sales outlook for its upcoming quarter and highlighted promotional initiatives to drive growth.

Key Highlights

• The company forecast third-quarter comparable sales to increase in the low single digits, above Wall Street’s projected 0.3% decline.
• American Eagle cited planned promotions and the rollout of new merchandise as drivers of higher customer demand.
• In extended trading, AEO stock rallied approximately 25% following the upbeat forecast and commentary on its promotional strategies.

Management Commentary Chief Executive Officer Jay Schottenstein noted that targeted promotions and refreshed product assortments have laid the groundwork for improved performance. He emphasized that strengthened marketing campaigns-featuring partnerships with Sydney Sweeney and Travis Kelce-have boosted brand visibility and engagement heading into the fall selling season.

Outlook With promotional activities ramping up and new product launches scheduled, American Eagle expects to sustain momentum through the back-to-school period and beyond, positioning the company to outperform consumer apparel peers in the third quarter.

• Reuters