Abercrombie & Fitch (ANF) is betting big on football as American Eagle Outfitters (AEO) launches a campaign with Kansas City Chiefs’ Travis Kelce.

“What we have is the first official fashion partnership with the NFL, which is pretty incredible,” Abercrombie & Fitch CEO Fran Horowitz told Yahoo Finance’s Opening Bid.

The retailer recently announced the multiyear partnership, but it remains to be seen whether the move can offset mixed Q2 results as tariff pressure mounts.

Year to date, the company’s stock is down nearly 38%, compared to an 8% gain for American Eagle. Abercrombie shares rose nearly 590% in the past five years as Horowitz engineered a turnaround.

Horowitz called the partnership an opportunity “for two iconic global brands to come together.” The deal spans all 32 NFL teams and includes men’s and women’s apparel. It follows several years of limited team collections.

“Their fandom and our consumer are very in sync,” she added.

But rivals are moving fast. American Eagle’s tie-up with Kelce has boosted traffic and brand visibility. Horowitz argued that Abercrombie’s NFL deal is its own differentiator, incorporating athletes like the Dallas Cowboys’ CeeDee Lamb.

She emphasized authenticity in player partnerships, adding that players were picked in part for their excitement about the brand.

Still, Abercrombie’s financials reflect a mixed picture. The company reported Q2 net sales of $1.21 billion, up 7% year over year, beating analysts’ expectations of $1.2 billion, according to Bloomberg data. That growth was largely driven by Hollister’s 19% net sales increase, as Abercrombie posted a 5% sales decline.

Meanwhile, adjusted earnings per share hit $2.32, above consensus estimates of $2.27.

The results were overshadowed by the larger-than-expected $90 million tariff impact. Shares fell roughly 2% following the report.

In a note to clients, Jefferies analyst Corey Tarlowe said that while Hollister remains strong, Abercrombie stores may see only modest gains in the second half of 2025. The firm maintained its Buy rating but trimmed its price target to $130 from $135.

JPMorgan’s Matthew Boss cut its price target on Abercrombie shares to $145 from $151, warning tariffs could weigh on margins in the second half of the year. Boss called it a “show-me setup,” meaning the retailer still has to prove its NFL partnership and marketing push can deliver results.

On pricing, Horowitz said the company is avoiding broad-based increases despite tariffs.