American Eagle Outfitters Inc (AEO 3.65%) surged 37.96% Thursday to close at $18.79. Volume exploded to 105.2 million shares, nearly nine times its three-month average of 11.9 million, signaling heavy investor participation.
The broader market strengthened, with the S&P 500 (^GSPC 1.07%) rising 0.83% to 6,502.08 and the Nasdaq Composite (^IXIC 1.37%) climbing 0.98% to 21,707.69 as investors positioned ahead of Friday's jobs data and boosted rate-cut bets.
Peers moved more modestly. Abercrombie & Fitch Co (ANF -2.71%) gained 1.16% to $93.48, while Levi Strauss & Co (LEVI -0.75%) added 0.13% to $22.55. AEO's single-day rally far outpaced its apparel sector peers.
The jump followed a strong earnings report, with revenue of roughly $1.28 billion and operating income of $123.65 million as the retailer benefited from tighter promotions and improved demand. Management highlighted the success of celebrity campaigns with Sydney Sweeney and Travis Kelce, which generated more than 40 billion impressions and over 700,000 new customers. Investors will watch whether this momentum carries into the holiday season, when apparel retailers typically book their largest quarterly gains.
Market data sourced from Google Finance and Yahoo! Finance on Thursday, Sept. 4, 2025.
