Retail Stock Pops on Sydney Sweeney Push to Gen-Z Appeal

ASEO short interest has been climbing

Emma Duncan

Managing Editor

Jul 24, 2025 at 11:15 AM

Clothing retailer American Eagle Outfitters Inc (NYSE:AEO) is moving 6.5% higher to trade at $11.53 this morning, after the company revealed its new denim campaign with Actress Sydney Sweeney, which includes a limited edition "The Sydney Jean" jacket. The purpose behind the campaign is to encourage more Gen-Z business.

AEO is eyeing its third-straight pop, as well as its best daily performance since May 12. The security yesterday broke above long-term resistance at the 50-day moving average, continuing to chip away at tis 31% year-to-date deficit.

Short interest has been on the rise of late. Up 24% in the past two reporting periods, this accounts for 13.1% of the stock's total available float. At the equity's average pace of daily trading, it would take nearly three days for shorts to buy back their bearish bets.

It's also worth noting that the stock has tended to underperform volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 12 out of 100. In other words, despite today's pop, AEO remains a good selling candidate.

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