American Eagle stock price continued its strong bull run in the extended hours after the company published strong results and boosted its guidance. AEO shares ended the session at $20.8 and then rose to $22.8 in the after-hours. So, will this surge continue?
American Eagle boosted by key marketing campaigns
AEO, the parent company of American Eagle, Aerie, and Offline, reported strong financial results, helped by its viral marketing campaigns with Travis Kelce, Sydney Sweeney, and Martha Stewart.
While some of these campaigns were controversial, they led to more website and store traffic, which translated into sales. The Chief Financial Officer said:
“The traffic we’re seeing digitally off of those campaigns is significant. That’s where we’re seeing a lot of the gains from those efforts and from the effectiveness of those campaigns.”
The financial results showed that its revenue rose to $1.36 billion from $1.28 billion in the same period last year. Its nine-month revenue rose to $3.735 billion from $3.724 billion in 2024.
American Eagle jumped 10% in after mkt trading following sales beat. The stock is now up 120% in past 5 months, which is 15x the S&P 500, since Sydney Sweeney blessed the brand. What a country. $AEO
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The growth was driven by its American Eagle and Aerie businesses. American Eagle’s revenue rose to $853 million, while Aerie generated $461 million. Its other segment deteriorated, with its revenue dropping to $54 million.
American Eagle’s performance is a sign that the company’s business continues to thrive despite the ongoing challenging market. As a big importer, the company is now paying more money in tariffs thanks to Donald Trump’s actions. It expects that the net impact of tariffs will be $70 million this year.
It is also doing well as consumer inflation remained at an elevated level. The most recent results showed that the headline Consumer Price Index rose to 3%, while consumer confidence has retreated.
Its performance is a sign that middle and higher-earners are continuing to spend as wages have risen. Portfolios have also done well in the past few months, now that the stock market is in a bull market.
American Eagle boosted its forward guidance as demand remained elevated. It now expects that the comparable store sales will be between 8% and 9% in Q4 and that its operating income will be between $155 million and $160 million.
AEO’s performance mirrored that of Abercrombie & Fitch (ANF), whose stock soared by over 50% after its recent earnings. The Gap stock has jumped by 60% from its lowest level this year, while Urban Outfitters soared to $80 from last month’s low of $60.
AEO stock price technical analysis
The daily chart shows that the AEO stock price has rebounded in the past few months. It soared from the year-to-date low of $9.2 to $22 today.
American Eagle has crossed the important resistance level at $20.30, the highest point on September 17. Moving above that level was important as the company invalidated the forming double-top pattern.
It has moved to the 78.60% Fibonacci Retracement level and the Supertrend indicator. Therefore, the most likely AEO share price forecast is bullish, with the next point to watch being at $25, which is about 20% above the current level.
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