Shares of fashion retailer American Eagle Outfitter have jumped after the company said that its tie-ups with celebrities Sydney Sweeney and Travis Kelce are expected to drive strong sales between July and September.

The US firm's stocks surged 25% in late trading on Wednesday as American Eagle boss Jay Schottenstein said its second-quarter performance "exceeded expectations", boosted by the success of its ad campaigns.

American Eagle made headlines with its divisive "Great Jeans" ad for its denim line featuring Sweeney, sparking a debate over race and beauty standards.

The firm also ran a clothing series with athlete Kelce, days after news broke of his engagement to popstar Taylor Swift.

The fall season is off to a positive start, said Mr Schottenstein.