American Eagle Outfitters Inc. has partnered with Kansas City Chiefs star Travis Kelce, marking its latest high-profile marketing move.
The collaboration, AE x Tru Kolors, features Kelce’s own brand and includes t-shirts, sweatshirts, sweatpants, and trousers.
The tie-up follows widespread attention earlier this year surrounding the retailer’s campaign with actress Sydney Sweeney.
American Eagle said in a release that the Kelce collaboration has been in development for more than a year and will be marketed alongside athletes such as quarterback Drew Allar, gymnast Suni Lee, and college basketball player Azzi Fudd.
Shares of American Eagle rose as much as 6.1% in New York trading on Wednesday following the announcement.
The company’s stock has fallen 27% this year through Tuesday’s close.
The timing of the campaign coincides with Kelce’s recent engagement to pop star Taylor Swift, an event that has drawn significant media attention.
Fallout from Sydney Sweeney campaign
American Eagle came under scrutiny earlier in the summer when it launched its “great jeans” campaign featuring Sydney Sweeney.
The tagline “Sydney Sweeney has great jeans” sparked criticism from some who interpreted it as a coded reference to eugenics, linking the actress’s appearance to historical associations with white supremacy and Nazi propaganda.
The controversy gained further traction when President Donald Trump publicly defended Sweeney, calling the campaign the “hottest ad out there” in a post on Truth Social.
He added encouragement for the actress, which prompted a rally in American Eagle’s shares, sending them up 23% on August 4.
That stock surge proved temporary. As of late August, American Eagle shares are down nearly 25% for the year and have fallen 44% compared with the same point in 2024.
Earnings outlook and analyst view
The retailer is set to release its second-quarter earnings on September 3.
The company has reported year-over-year sales declines for the past three quarters, with marketing campaigns and collaborations seen as attempts to reignite momentum.
UBS has maintained a Buy rating on American Eagle with a $19.00 price target ahead of the results.
The investment bank said in a recent note that its market checks suggest the company’s second-quarter performance was in line with sell-side expectations.
UBS added that third-quarter trends have shown improvement, citing the impact of the Sweeney campaign.
According to UBS, American Eagle maintains solid fundamentals, including a 36.9% gross profit margin and a track record of paying dividends for 22 consecutive years.
Analysts pointed out that questions remain over whether the publicity generated by recent campaigns will translate into sustainable growth.
UBS expects the forthcoming report will not materially shift earnings-per-share estimates or alter overall market sentiment.
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