American Eagle Outfitters stock is soaring today, but maybe thank Aerie for the boost, not Sydney Sweeney

Less than five months have passed since American Eagle’s controversial Sydney Sweeney campaign, which led to accusations ranging from cluelessness to Nazi propaganda.

While the mall mainstay defended the campaign and has escaped relatively unscathed, a new quarterly earnings report shows the success of its sister-brand Aerie is buoying its financial results.

On Tuesday, December 2, apparel retail company American Eagle Outfitters (AEO) shared its third-quarter earnings for fiscal 2025, including $1.36 billion in revenue.

The 6% increase year-over-year (YOY) beat Wall Street’s predicted $1.32 billion in revenue, according to consensus estimates cited by CNBC. The company also reported earnings per share of 53 cents, compared to 44 cents expected. 

American Eagle’s namesake brand—and home to the “Sydney Sweeney has great jeans” advertisements—can’t claim much responsibility for the jump. Its comparable sales grew by only 1% YOY, while Aerie’s comparable sales jumped 11% YOY. 

“Resurgence in intimates”

Looking at the fiscal year to date, Aerie also reported higher revenue than last year, while the American Eagle brand lagged behind itself YOY. 

In an earnings call, president and executive creative director of American Eagle and Aerie, Jennifer Foyle, pointed to a “resurgence in intimates” and “strength” across all of the brand’s offerings, as key to Aerie’s success.

Foyle added that the brand has seen an “acceleration in demand” since the spring.   

In October, Aerie made an anti-AI pledge, promising not to use the technology to generate bodies or people in its ads, staying “100% Aerie real.” 

AEO has raised its fourth-quarter guidance, with CEO Jay Schottenstein sharing that the company had a “record-breaking Thanksgiving weekend led by an acceleration in demand across brands and channels and underscored by outstanding growth at Aerie and Offline.” 

Offline is an activewear brand opened by American Eagle in 2020.   

The company now predicts $155 to $160 million in operating income for the fourth quarter, up from $125 to $130 million, and an 8% to 9% increase in comparable sales. Its operating income guidance for the fiscal year also rose, jumping from between $255 and $265 million to $303 to $308 million. 

Investors responded with glee to the news. American Eagle shares (NYSE:AEO) rose more than 14% after-hours and into premarket trading on Wednesday. The stock is up more than 21% year to date. 

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