American Eagle Outfitters’ stock surged nearly 24% in premarket trading on Thursday after a celebrity-heavy marketing push drove a wave of new customers.

The retailer’s “Great Jeans” campaign, fronted by actor Sydney Sweeney, has delivered what the company described as “unprecedented” customer acquisition. Combined with partnerships featuring NFL star Travis Kelce, tennis player Coco Gauff and actor Jenna Ortega, American Eagle is banking on celebrity appeal to capture Gen Z shoppers at a time when most U.S. retailers are struggling with weak discretionary spending.

Shares had slumped earlier this year but have rebounded sharply on the back of the campaigns. Analysts say the marketing momentum is translating into real sales, with American Eagle now expecting quarterly comparable sales to rise by low single digits — a better showing than analysts’ forecast of a 0.3% drop. For the full year, the company expects sales to be flat compared to 2024, rather than falling as previously anticipated.

Market watchers caution, however, that much of the stock’s re-rating depends on whether the celebrity-driven demand holds through the critical holiday season. Still, the turnaround has helped ease investor concerns around execution and boosted American Eagle’s market valuation, placing its forward price-to-earnings multiple above some rivals, including Abercrombie & Fitch and Urban Outfitters.

With short interest still high — nearly 17% of the public float — traders will be watching closely to see if the brand’s denim-fuelled comeback has staying power.