Can American Eagle's TikTok Shop and Creator Programs Lift Demand?

American Eagle Outfitters, Inc. AEO continued to see strong customer engagement with AEO’s marketing initiatives and partnerships, with particularly strong engagement during several periods in the first quarter of 2026. Management said the brand continues to benefit from strong customer loyalty and affection, helping keep American Eagle top of mind among its core customers. More recently, the company introduced the AE creator community and launched a dedicated TikTok Shop to engage customers in a more relevant and immediate way.

Aerie’s new influencer program also exceeded management’s expectations within its first three weeks and resonated strongly with the brand’s customer community. The company said it plans to continue building on the early success of its influencer initiatives. Aerie also continued to see strength in new customer acquisition and retention, with management stating that its new customer acquisition metric was up by roughly $1 million. Management also highlighted rising customer retention and the brand’s strong emotional connection with its community.

The company said its new influencer initiatives at both AE and Aerie exceeded expectations, with customers actively engaging with the brands and promoting them. To further develop the AE program, the company made a strategic hire to help advance the initiative. In addition, AE announced Lamine Yamal as part of its upcoming brand initiatives, with management expressing enthusiasm about his launch and describing him as a strong fit for the brand.

Overall, American Eagle’s creator-led and social commerce initiatives are designed to deepen customer engagement and make the brand more relevant and immediate for consumers. As the company continues to invest in these initiatives, management is also placing greater emphasis on converting customer engagement and marketing awareness into stronger business performance.

The Zacks Rundown for AEO

AEO’s shares have gained 33.5% in the past year against the industry’s decline of 6.9%. The company currently carries a Zacks Rank #2 (Buy).

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From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 9.55X, lower than the industry’s average 13.05X.

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The Zacks Consensus Estimate for AEO’s current fiscal year earnings implies a year-over-year decline of 17.3%, and the same for next fiscal year earnings implies a year-over-year rise of nearly 8%.

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Other Stocks to Consider

Some other top-ranked stocks have been discussed below:

FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.

Fossil Group, Inc. FOSL designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.

Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2.

The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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