Shares of US fashion retailer American Eagle have jumped after the company said that its tie-ups with celebrities Sydney Sweeney and Travis Kelce are expected to drive strong sales.
The firm’s stocks surged 25% in after-hours trading on Wednesday as its boss Jay Schottenstein said its second-quarter performance “exceeded expectations“, forecasting further success from sales boosted by its viral advertising campaigns.
American Eagle made headlines with a divisive “Great Jeans” ad for its denim line featuring Sweeney, sparking a debate over race and beauty standards.
The firm also announced a collaboration with athlete Kelce, just after news broke of his engagement to popstar Taylor Swift.
Sales slipped 1% over May-July period, after sliding 5% in the previous quarter, the company said on Wednesday.
But executives, who had pulled the firm’s annual sales forecast in May citing economic uncertainty, said they now expected sales growth in…
