American Eagle Shares Surge as Sydney Sweeney Campaign Drives Sales
American Eagle Outfitters saw its shares soar 25% in after-hours trading on Wednesday after the U.S. fashion retailer reported second-quarter results that exceeded expectations, crediting its recent high-profile marketing campaigns for the boost.
Chief executive Jay Schottenstein said collaborations with actress Sydney Sweeney and NFL star Travis Kelce have helped fuel a resurgence in brand awareness and sales. He predicted continued momentum heading into the autumn season, citing a rise in customer engagement and demand across product lines, from denim to underwear.
The retailer’s performance marked a turnaround from earlier this year. Sales declined 1% during the May-to-July period, an improvement over the 5% drop recorded in the previous quarter. Executives, who had withdrawn their full-year sales forecast in May amid economic uncertainty, now expect modest growth in the “low single digits” in the coming months.
“Fuelled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement, and comparable sales,” Schottenstein said.
Sweeney Campaign Sparks Controversy and Sales
American Eagle made headlines with its viral “Great Jeans” campaign starring Emmy-nominated actress Sydney Sweeney. In the ad, Sweeney delivers a playful line about genetics and denim: “Genes are passed down from parents to offspring, often determining traits like hair colour, personality and even eye colour. My jeans are blue.”
The ad quickly went viral, generating over 40 billion impressions, but also sparked debate, with some critics misinterpreting the wordplay as a reference to eugenics. Despite the backlash, the campaign proved to be a major commercial success, with Sweeney’s signature jeans selling out within a week of launch.
Even U.S. President Donald Trump weighed in on the controversy, publicly supporting Sweeney in a Truth Social post where he called the campaign “the HOTTEST ad out there.”
American Eagle’s chief marketing officer Craig Brommers described the campaign as a “reset” for the brand, which had struggled with slumping sales earlier in the year.
Kelce Collaboration and Tariff Challenges
The company also announced a collaboration with Kansas City Chiefs star Travis Kelce, shortly after news of his engagement to pop icon Taylor Swift, adding another layer of buzz to its marketing strategy.
While upbeat about sales momentum, American Eagle cautioned investors about upcoming challenges. The retailer expects tariffs to increase costs by roughly $70 million in the second half of the financial year. However, it has managed to reduce the initial impact through supplier negotiations and sourcing adjustments.
Executives noted that while some product prices will increase, price hikes are not the primary strategy to offset tariff-related costs.
With a fresh surge in popularity and bold marketing moves, American Eagle is positioning itself for a strong end to the year, banking on star power and renewed customer interest to maintain its upward trajectory.
