PITTSBURGH — Shares of American Eagle Outfitters surged after the fashion retailer announced that partnerships with celebrities Sydney Sweeney and Travis Kelce are expected to bolster sales. In after-hours trading on Wednesday, the company’s stock jumped 25% following CEO Jay Schottenstein’s remarks on the firm’s second-quarter performance, which he described as surpassing projections.

The retailer, known for its trendy apparel, reported a slight decline in sales for the May to July period. This followed a more significant downturn in the prior quarter. However, executives expressed optimism, anticipating a return to sales growth in low single digits in the coming months, driven by increased consumer interest in products ranging from jeans to undergarments.

The company recently gained attention for a controversial advertisement featuring Sweeney, a star of the hit series “Euphoria.” The ad, which includes Sweeney discussing inherited traits while promoting American Eagle’s denim line, sparked significant debate over its implications related to race and beauty standards. Despite the backlash, American Eagle has stood by the campaign, stating that the focus is solely on its denim products.

Schottenstein noted the positive early performance of the autumn season, attributing part of the success to the effective marketing strategies involving Sweeney and Kelce. “We have seen increased customer engagement and an uptick in comparable sales,” he said, emphasizing the stronger product offerings that have caught the attention of young consumers.

The Sweeney advertisement has reportedly garnered around 40 billion impressions across various platforms, including social media and physical storefronts, contributing to the rapid sellout of the featured jeans following the campaign’s launch. The emotional responses to the ad have even reached the political sphere, with notable figures weighing in on the debate surrounding it.

Support for Sweeney came from unexpected quarters, including a post from former President Donald Trump. He praised the actress and the ad on social media, further elevating its visibility.

Despite the encouraging news, American Eagle also cautioned investors about challenges ahead. The company anticipates additional costs of around $70 million due to tariffs in the second half of the financial year. Yet, they reported that negotiations with suppliers and adjustments in sourcing have successfully mitigated initial cost estimates.

While the company plans to raise some prices, executives clarified that this is not the main strategy employed to counter the financial impact of tariffs. Instead, they are focused on drawing more customers through stylish offerings and innovative marketing methods.

Looking ahead, American Eagle is poised to leverage its celebrity partnerships further, with indications of additional projects featuring Sweeney and Kelce on the horizon. With the fashion retailer facing a recovering market and evolving consumer habits, its strategic maneuvers will be key in shaping its performance in the months to come.