PITTSBURGH — American Eagle Outfitters reported better-than-expected fiscal second-quarter earnings Wednesday, crediting its marketing partnership with actress Sydney Sweeney as its most successful campaign to date, despite some controversy surrounding the ads. The retailer’s stock surged over 20% in after-hours trading following the announcement.

The partnership with Sweeney, known for her role in the series “Euphoria,” sparked a mix of acclaim and criticism upon its launch. The company believes the campaign, alongside a new collaboration with NFL star Travis Kelce, has effectively attracted new customers and boosted traffic across various shopping platforms.

CEO Jay Schottenstein emphasized the positive momentum heading into the fall season. He noted stronger product offerings and successful marketing initiatives have enhanced customer awareness and engagement. “We look forward to building on our progress and driving higher profitability and long-term growth,” he stated.

Following an earlier withdrawal of its full-year guidance, American Eagle has revised its expectations. The company now anticipates comparable sales to remain approximately flat, an improvement over a previous forecast predicting a slight decline. It also revised its estimated operating income, now projecting earnings between $255 million and $265 million for the year, down significantly from earlier predictions.

During the quarter, American Eagle’s earnings per share reached 45 cents, surpassing Wall Street’s expectation of 21 cents. Revenue totaled $1.28 billion, slightly below the $1.29 billion reported during the same period last year, underscoring the company’s ongoing challenges in the retail landscape.

Despite the revenue dip, the retailer reported a net income of $77.6 million for the quarter ending August 2, compared to $77.3 million a year prior. The company anticipates a modest increase in comparable sales for the current quarter, suggesting a more positive outlook than the expected 0.9% growth.

In an effort to revitalize its brand as consumers become increasingly selective with their spending, American Eagle strategically timed the launch of its Sweeney campaign for the back-to-school shopping season. While the slogan “Sydney Sweeney has great jeans” stirred debate, the overall response has been favorable, resulting in noticeable sales increases and an influx of new customers; the company reports gaining 700,000 new shoppers recently.

The Sweeney campaign also translated into substantial sales figures, with the Sydney Jacket selling out within a day. Additionally, the collaboration with Kelce—who recently became engaged to pop star Taylor Swift—generated three times more sales in a single day than previous partnerships achieved in a week.

American Eagle’s revival efforts have come amidst tough competition from other retail giants, including Abercrombie & Fitch, Gap, and Levi Strauss. Each of these brands is implementing their own innovative campaigns to capture market share in a challenging environment where consumer spending remains uncertain.

The company continues to navigate complexities in the global trade landscape, including tariffs that have impacted profit margins. American Eagle aims to reduce its reliance on China for manufacturing, facing ongoing challenges from tariffs affecting its production in Vietnam and India.

Overall, American Eagle’s recent strategic shifts and partnerships underline its commitment to adapting in a fluid retail environment. The success of its marketing initiatives and the response to new collaborations may play a pivotal role in shaping the company’s future growth trajectory.