American Eagle Outfitters (AEO) is hoping a new star-driven partnership will breathe fresh life into the brand after a turbulent summer. Following controversy surrounding its “great jeans” campaign featuring actress Sydney Sweeney, the retailer announced that NFL star Travis Kelce is the face of its latest collaboration — a tie-up with his lifestyle brand, Tru Kolors.
The collection, dubbed AE x Tru Kolors by Travis Kelce, includes a mix of apparel ranging from jeans and trousers to sweatshirts, sweatpants, and t-shirts co-branded with Kelce’s label. Marketing for the line features not only the Kansas City Chiefs tight end, who has remained firmly in the public spotlight amid his engagement to global superstar Taylor Swift, but also other athletes such as Penn State quarterback Drew Allar, Olympic gymnast Suni Lee, and UConn basketball standout Azzi Fudd. American Eagle said the collaboration has been in development for over a year, signaling that the rollout was carefully planned rather than a rushed reaction to recent criticism.
Investors appeared encouraged by the announcement. American Eagle shares surged as much as 6.1% in New York trading on Wednesday before settling with gains of 8.66%. The rally provided a rare bright spot for the stock, which had tumbled 27% for the year through Tuesday’s close, even as the S&P Small Cap 600 Index advanced 1.9% over the same period. With second-quarter earnings scheduled for release next week, the Kelce partnership comes at a pivotal moment for the brand.
The timing of the deal could hardly be more high-profile. Kelce, already a household name for his Super Bowl-winning career with the Chiefs, has enjoyed an explosion of celebrity visibility thanks to his relationship with Swift, a pairing that has drawn constant media coverage and fan attention. American Eagle is clearly betting that this cultural momentum will translate into renewed consumer enthusiasm for its denim and lifestyle apparel.
The retailer is eager to turn the page after its campaign with Sweeney sparked backlash earlier this year. Critics accused the ads of making thinly veiled references to eugenics, drawing widespread condemnation. The controversy eventually reached the political sphere when President Donald Trump weighed in, paradoxically defending the campaign by calling it the “HOTTEST ad out there” in a Truth Social post. Even as the ad attracted attention, it highlighted American Eagle’s broader challenge: maintaining cultural relevance while avoiding reputational missteps.
For a brand that has struggled with declining sales over the past three quarters, star-powered campaigns and fresh collaborations have become central to its turnaround efforts. The company is in the midst of rethinking how it positions itself in a highly competitive retail landscape where Gen Z and millennial shoppers have a growing array of fast-fashion and direct-to-consumer alternatives. American Eagle’s willingness to double down on celebrity-driven marketing reflects both the risks and potential rewards of leaning on pop culture to reinvigorate a legacy retailer.
Whether Travis Kelce’s Tru Kolors collaboration delivers a lasting boost remains to be seen. But in the near term, the high-profile partnership has injected momentum into both the brand’s image and its stock — offering a welcome reprieve ahead of earnings that could determine if American Eagle’s marketing gamble is starting to pay off.
Pump Radar
Stock Alerts