American Eagle soars as Sydney Sweeney partnership fuels impressive Q3 results and boost to full-year guidance

Buy Sydney Sweeney, sell jeans.

That simple formula first helped make American Eagle a meme stock, and has now translated into actual financial results.

The jean seller’s Q3 sales of $1.36 billion came in ahead of estimates for $1.32 billion, with adjusted earnings per share of $0.53 crushing Wall Street’s anticipated view of $0.44.

The good times are expected to keep rolling: same-store sales are poised to be up in the low single digits for this fiscal year, management said, boosting its previous outlook for these to flatline.

Shares are up double digits in premarket trading.

CEO Jay Schottenstein credited this improvement to “a number of decisive steps we’ve taken from merchandising to marketing to operations.”

Zooming in, he added, “The jeans that we had made specifically for Sydney Sweeney, they sold out like within two days.”

American Eagle’s controversial ad campaign featuring the actress, launched 10 days before the end of American Eagle’s Q2, drew the attention of even the president, who called it the “‘HOTTEST’ ad out there.”

Aside from Sweeney, American Eagle’s other recent celeb-adjacent work includes a collaboration with Taylor Swift’s fiance (Travis Kelce).

Jennifer Foyle, president and executive creative director, said these two partnerships “garnered more than 44 billion impressions.”