American Eagle Outfitters Inc. (AEO) just pulled off one of the more entertaining pivots in retail marketing. After spending the summer breaking the internet with Sydney Sweeney, the clothing retailer is now featuring Martha Stewart in its holiday campaign. Yes, that Martha Stewart. The 84-year-old lifestyle mogul is modeling jeans for a brand primarily known for dressing teenagers at the mall.
It's not as random as it sounds, though. American Eagle has been on a roll in 2025 with high-profile partnerships that turned heads and moved merchandise. First came Travis Kelce, then Sydney Sweeney's campaign that generated both buzz and controversy. Now Stewart is headlining the "Give Great Jeans Campaign" for the holiday shopping season, complete with a "Live, Laugh, Low Rise" tagline that cleverly tweaks the familiar "Live, Laugh, Love" phrase.
From Gen Z Icon to Living Legend
The campaign images show Stewart doing her thing: denim jacket, jeans, surrounded by a room decorated entirely in denim, including what appears to be a turkey. American Eagle shared the photos on their Threads account, though curiously, the company hasn't posted on X since 2023.
The strategic logic is pretty straightforward. Sweeney brought the younger crowd, and now Stewart is supposed to remind older shoppers that American Eagle still exists for them too. "Sydney Sweeney reached their demographic. With Martha Stewart, they are reminding an older generation that American Eagle is there for her, too," branding expert Aliza Licht explained to the New York Post.
Licht suggested that Stewart's involvement could project confidence in fashion coming from an "unapologetic icon" who happens to be in her 80s. It's a smart play for a retailer trying to expand beyond its core teenage and young adult base without alienating existing customers.
The Sweeney Effect Was Real
Let's rewind to July, when American Eagle launched its "Sydney Sweeney Has Great Jeans" campaign. The internet immediately noticed the double meaning, with some critics seeing it as a reference to "genes" given Sweeney's blonde hair and blue eyes. The backlash was swift, but so were the sales.
American Eagle reported strong results from the Sweeney collaboration and saw a massive influx of new customers. The campaign went viral enough that even President Donald Trump weighed in with an opinion. On Google Trends, American Eagle hit a five-year peak in July and August, which is unusual since the brand typically sees its highest search interest during the November holiday season.
Travis Kelce's August partnership added fuel to the fire, capitalizing on his status as both an NFL star and Taylor Swift's fiancé. Together, these celebrity campaigns delivered exactly what American Eagle needed: non-seasonal buzz and customer acquisition during typically slower summer months.
Show Me the Numbers
The real test comes with third-quarter earnings. American Eagle crushed second-quarter expectations for both revenue and earnings per share, though the Sweeney campaign only launched in late July. That means the third quarter should reveal the full impact of both the Sweeney and Kelce partnerships.
Analysts are expecting third-quarter revenue of $1.32 billion, up from $1.29 billion in the same period last year. The company has beaten revenue estimates in five of the past 10 quarters, so there's a decent track record but nothing guaranteed.
On the earnings side, analysts project 44 cents per share for the third quarter, compared to 39 cents in the prior year period. American Eagle has topped earnings estimates in six of the last 10 quarters, suggesting the company has gotten better at managing expectations or executing its strategy, or both.
Stock Performance Tells the Story
Investors are clearly buying what American Eagle is selling. The stock jumped 4.88% to $20.62 on Tuesday, dancing near its 52-week high of $20.59 set back in December 2024. The company has tested that ceiling several times in 2025, including this week.
Year-to-date, shares are up 23.70%, a remarkable run for a retailer navigating a challenging consumer environment. The 52-week range of $9.27 to $20.59 tells you everything about the transformation story investors are betting on.
Whether Martha Stewart can replicate the Sweeney magic remains to be seen, but American Eagle has proven it knows how to generate attention in 2025. The question now is whether that attention converts to sustained sales growth across multiple demographics. Third-quarter results should provide some answers.
