- American Eagle’s quarterly total net revenue rose to $1.76 billion, a 10% increase from a year ago, and beat Wall Street expectations of $1.73 billion.
- Abercrombie’s net sales in the fourth-quarter jumped 5% to $1.67 billion, in line with Wall Street expectations.
- In 2025, American Eagle partnered with Sydney Sweeney, who is well-known for her roles in "Anyone But You," "Euphoria," and "The White Lotus.”
American Eagle Outfitters, Inc. or Abercrombie & Fitch Co.? Wall Street's focus is back on the fashion brands vying for Gen Z shoppers after American Eagle's quarterly revenue and profit beat on Wednesday, along with a forecast for strong annual comparable sales growth.
The post-pandemic environment proved challenging for apparel retailers, as consumers pulled back on discretionary spending and gravitated toward trendier, fast-moving styles. Both companies saw their shares slump, prompting merchandise overhauls across American Eagle and Abercrombie's brand portfolios to reignite demand and win back younger customers.
ANF Vs AEO: The Celebrity Partnership Of 2025
In 2025, American Eagle’s marketing campaign with Sydney Sweeney, who is well-known for her roles in "Anyone But You," "Euphoria," and "The White Lotus, garnered investor and retail attention equally.
The company introduced the "Sydney Sweeney Has Great Jeans” brand partnership, aimed at showcasing a return to denim at a time when customers are also turning heavily to cargos and chinos for their wardrobes.
American Eagle also worked on a limited-edition brand collaboration with NFL star and Pop Singer Taylor Swift’s soon-to-be husband, Travis Kelce’s sportswear and lifestyle clothing line. It also had a campaign running with veteran actress Martha Stewart, known as "Give Great Jeans.”
Abercrombie & Fitch, on the other hand, has a multi-season partnership with Pittsburgh Steelers linebacker TJ Watt and his wife, former professional soccer player Dani Watt.
The company also signed a multi-year partnership with the NFL last year to be its official Fashion Partner. Abercrombie aimed to work on a fashion-first lens in partnership with the NFL by pairing athlete-led campaigns and player-designed apparel with a lifestyle assortment.
How Did This Help Results?
Brand partnerships pumped American Eagle’s quarterly total net revenue to $1.76 billion, a 10% increase from a year ago and beat Wall Street expectations of $1.73 billion, according to data from Fiscal AI. The company’s adjusted earnings per share came in at $0.84, compared with $0.71 expected by analysts.
American Eagle expects annual comparable sales to jump in the mid-single-digit percentage range.
Abercrombie’s net sales in the fourth-quarter jumped 5% to $1.67 billion, in line with Wall Street expectations and adjusted profit per share of $3.68, beating estimates of $3.57. The company expects annual sales to jump 3% to 5% in fiscal 2026.
Analyst Ratings: Which Stock Has More Upside?
American Eagle has a consensus rating of ‘Hold,’ according to Koyfin. One out of 11 analysts covering the stock rate it ‘Buy,’ eight ‘Hold’, and two analysts have a ‘Strong Sell’ rating. The stock’s average price target on Wall Street is $25.78, implying an 15% upside from its last closing price of $22.45.
Telsey Advisory Group noted that consumers responded well to new product collections and marketing initiatives, and that sales were strong through the first two weeks of January.
The brokerage said that AEO has historically performed well during peak demand periods, but delivering in the lull periods has been more challenging for the company, and the firm expects AEO to demonstrate continued momentum, even after the buzz from recent high-profile celebrity marketing campaigns fades.
Wall Street has a consensus ‘Buy’ rating on Abercrombie & Fitch, according to Koyfin, with seven out of the 12 analysts covering the stock rating it ‘Buy’ or higher and five rating it ‘Hold.’ The average price target was $122.89, implying a 28% upside from Wednesday's closing price of $95.65.
On Wednesday, Jefferies lowered the firm's price target on Abercrombie & Fitch to $130 from $135, saying that the company delivered "a solid Q4" and an annual forecast, and that it maintained double-digit margins despite tariffs.
But the firm added that a first-quarter disruption and continued tariff headwinds result in uncertainty. Still, the firm views underlying earnings power as "sustainable" and believes the current volatility creates an opportunity, Jefferies said.
What Is Retail Thinking?
Retail sentiment on American Eagle jumped to ‘extremely bullish’ from ‘bullish’ a day ago, with sentiment hitting the highest since July last year, according to data from Stocktwits.
Sentiment on Abercrombie & Fitch dipped to ‘neutral’ territory, compared to ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
In the last 24 hours, retail message volumes on American Eagle jumped 1,100% on Stocktwits, and on Abercrombie, they spiked 150%.
So far into 2026, American Eagle’s stock has tumbled more than 14% compared with Abercrombie’s 24% fall. Shares of AEO have soared 82%, while ANF stock has increased more than 14% over the last 12 months.
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