American Eagle Outfitters (NYSE: AEO) is back in the spotlight after unveiling its latest celebrity-driven campaign, this time with Kansas City Chiefs star Travis Kelce.
The retailer announced the launch of “AE x Tru Kolors,” a collaboration with Kelce’s sportswear and lifestyle brand, featuring more than 90 pieces ranging from vintage-inspired tees to varsity jackets and cashmere sets.
Notably, the news immediately lifted investor sentiment. By midday trading on Tuesday, American Eagle shares were up 4.43% at $12.72, climbing from a previous close of $12.18. Earlier in the day, the stock had risen by as much as 7%.
The move provided a much-needed boost for AEO stock, which has struggled in 2025 and remains down nearly 25% year-to-date.
Additionally, the partnership also comes at an interesting moment for Kelce, one of the NFL’s most recognizable athletes, who has drawn heightened media attention following his engagement to pop icon Taylor Swift.
Indeed, this isn’t the company’s first high-profile campaign of the year. In August, it partnered with actress Sydney Sweeney in a jeans campaign that stirred controversy but briefly sent the stock soaring 23%.
The Kelce collection will roll out in two phases, with the first drop launching this week and the second in late September.
Wall Street cautious on AEO stock
At the same time, the NFL star’s partnership comes as Wall Street grows more cautious on the AEO share price. For instance, on Monday, Bank of America Securities cut its rating to ‘Underperform’.
Analyst Christopher Nardone lowered fiscal 2025 and 2026 EPS estimates to $0.65 and $0.95, while trimming the price target from $11 to $10.
The downgrade was driven by concerns that higher tariffs and soft Aerie sales could pressure margins, even as American Eagle leans on celebrity campaigns to reignite buzz. The retailer is set to report fiscal Q2 earnings on September 3, with Wall Street expecting $0.21 per share on $1.24 billion in sales.
Featured image via Shutterstock
