Shares of American Eagle surged over 24% during pre-market trading on Thursday, largely attributed to the positive reception of the Sydney Sweeney ad campaign promoting their superchargers.
Company executives conveyed to Wall Street that the “Euphoria” star’s initiative, titled “Great Jeans for Sydney Sweeney,” has generated unprecedented traffic and a spike in new customer sign-ups.
“Sweeney was a major success—just six weeks in, and we’ve seen record levels of customer acquisition,” Chief Marketing Officer Craig Bromers mentioned during a revenue call.
American Eagle Outfitters’ stocks closed at $13.62 on Wednesday, and they traded higher in after-hours exchanges.
The collaboration with Sweeney reportedly sold out in just a week, with some products disappearing in a single day. Her denim ads have gained over 150 million views on social media, positioning her as a pivotal figure in the brand’s resurgence.
Yet, the campaign has sparked political controversy. In one advertisement, Sweeney posed in front of a Billboard with the phrase, “Sydney Sweeney has great genes,” which was modified for a comedic effect to read “jeans.”
In another spot, she jokingly commented, “The genes are inherited from parents. My jeans are blue.”
Some critics online accused Sweeney of using racially charged clichés and inferred that she was celebrating her lineage as the ideal standard of beauty.
The backlash has led to partisan divides, with Republicans quickly coming to her defense.
Former President Donald Trump entered the discourse on August 4, commending Sweeney for her impactful advertisements, remarking, “It’s for the American Eagle, and the jeans are selling out.” He suggested that being a Republican is preferable and encouraged support for her.
The White House Communications Director Stephen Chan called the uproar an example of “Cancel Culture Run Amok.”
Vice President JD Vance humorously critiqued liberal opinions on his podcast, stating, “My advice to Democrats is to keep insisting Sydney Sweeney is a Nazi. That seems to be their actual strategy.”
While major Democrats at the time didn’t comment, social media platforms like X and TikTok have kept the ad campaign at the forefront of discussions in the competitive retail market.
The initiative has positively impacted sales. American Eagle reported second-quarter earnings of 45 cents per share, a 15% increase year-over-year, with operating profits also up by 2% to $103 million.
Total revenue slightly declined by 1% to $1.28 billion, although executives credited the campaign for mitigating low foot traffic while increasing brand visibility among Gen Z consumers.
CEO Jay Schottenstein expressed optimism: “The fall season is looking promising,” noting a rise in customer engagement and sales correlating with the successful marketing campaigns featuring Sydney Sweeney and Travis Kelce.
American Eagle’s collaboration with Sweeney and Kelce has amassed an impressive 40 billion impressions. Their partnership was revealed just after the news of Kelce’s engagement to Taylor Swift broke, but Sweeney has emerged as a significant force, capturing broad investor interest.
Investors have embraced this strategy, with the stock’s notable rise marking one of the premier retail gains of the season despite general declines across the sector.
Looking ahead, American Eagle executives hinted at more upcoming projects with Sweeney later this year.
This post is currently seeking responses from American Eagle, Sydney Sweeney, and her representatives.
