American Eagle Outfitters (AEO) jumped 8.5% on Wednesday, closing at $13.22, after the retailer launched a high-profile partnership with NFL star Travis Kelce. The stock is also higher in today’s premarket trading, signaling that the momentum could continue.
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The new line of clothing, AE x Tru Kolors by Travis Kelce, includes over 90 items ranging from jackets to casual basics, priced between $14.95 and $179.95. The launch drew strong investor interest, with trading volume more than doubling compared to the daily average.
Swift Spotlight Adds Extra Buzz
Kelce’s profile now extends well beyond football, and his engagement to Taylor Swift has brought even more visibility to the new collection. Reports noted that American Eagle gained from the surge in cultural buzz, putting the brand in front of younger, trend-focused shoppers.
Analysts have pointed out that while celebrity tie-ups may not fix American Eagle’s margin pressures, they can still give a short-term boost to store traffic and online sales.
What’s Next for AEO?
The launch comes just ahead of American Eagle’s Q2 2025 earnings report on September 3. Wall Street analysts expect AEO to report earnings per share of $0.20 in Q2 versus $0.39 in the same quarter a year ago. Meanwhile, revenues are expected to decline by 5% from the same quarter last year, reaching $1.23 billion, according to data from the TipRanks Forecast page.
Is American Eagle Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for American Eagle is Hold, based on one Buy, six Hold, and three Sell ratings over the past three months. With that comes an average AEO stock price target of $11.44, representing a potential 13.46% downside for the shares.
