American Eagle stock soars 24% thanks to Sydney Sweeney ad campaign



American Eagle stock soared by more than 24% higher in pre-market trading Thursday after the clothing chain credited a risqué Sydney Sweeney ad campaign with supercharging sales — even as the spots sparked outrage online and in Washington.

Executives told Wall Street analysts that the campaign featuring the “Euphoria” star — billed as “Sydney Sweeney has great jeans” — drove record traffic and unprecedented new customer sign-ups.

“Sweeney is a winner, and in just six weeks, the campaign has generated unprecedented new customer acquisition,” chief marketing officer Craig Brommers said on the company’s earnings call.

Sydney Sweeney’s American Eagle “great jeans” ads drove record traffic and helped send the retailer’s stock soaring more than 24% in pre-market trading. American Eagle
Shares of American Eagle Outfitters closed Wednesday at $13.62, then shot up higher after-hours and in early Thursday trading following strong quarterly results. Google finance

Shares of American Eagle Outfitters closed Wednesday at $13.62, then shot up higher after-hours and in early Thursday trading following strong quarterly results.

American Eagle said the Sweeney collaboration sold out in a week, with some items gone in a day. Her denim ads have racked up more than 150 million social media views, turning her into the face of the brand’s revival.

But the campaign also ignited a political firestorm. One spot shows Sweeney in front of a billboard reading, “Sydney Sweeney has great genes,” with the word “genes” crossed out and replaced with “jeans.”

The “Euphoria” star fronted a viral campaign that racked up over 150 million social media views. American Eagle

Another ad features her quipping: “Genes are passed down from parents to offspring. My jeans are blue.”

Some online critics blasted the gimmick as racially coded, accusing the company of celebrating Sweeney’s white heritage as a beauty ideal.

The backlash spilled into partisan warfare, with Republicans rushing to her defense.

President Donald Trump jumped in on Aug. 4, praising Sweeney on Truth Social.

“Sydney Sweeney, a registered Republican, has the HOTTEST ad out there,” he wrote. “It’s for American Eagle, and the jeans are ‘flying [off] the shelves.’ Go get ’em Sydney. Being WOKE is for losers, being Republican is what you want to be.”

White House communications manager Steven Cheung called the controversy “cancel culture run amok.”

Critics accused the campaign of racial dog whistles, while Republicans rushed to defend Sweeney and the brand. American Eagle

Vice President JD Vance mocked liberals on the “Ruthless” podcast, saying: “My political advice to the Democrats is continue to tell everybody who thinks Sydney Sweeney is attractive is a Nazi. That appears to be their actual strategy.”

No prominent Democrats have weighed in, but social media brawls over the ads dominated X and TikTok in August, keeping American Eagle front and center in a crowded retail landscape.

The publicity paid off at the cash register. American Eagle reported second-quarter earnings of 45 cents a share, up 15% year-over-year, with operating profit rising 2% to $103 million.

Though total revenue dipped 1% to $1.28 billion, executives said the campaign offset weak foot traffic and boosted brand awareness across Gen Z shoppers.

“The fall season is off to a positive start,” CEO Jay Schottenstein told investors.

“Fueled 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.”

One ad shows Sweeney in front of a billboard reading “great genes,” later altered to “great jeans.” americaneagle/Instagram

The company said its partnerships with Sweeney and Kelce had generated a staggering 40 billion impressions to date. The Kelce collaboration — announced just one day after his engagement to Taylor Swift became public — also helped juice attention, though Wall Street credited Sweeney as the breakout driver.

Investors cheered the strategy. The stock’s double-digit surge was among the biggest retail pops this earnings season, signaling traders see American Eagle’s celebrity gambits as paying off even amid broader retail weakness.

American Eagle executives are leaning in to the trend, saying they are already planning more projects with Sweeney later this year — betting her star power will keep denim sales hot into the holiday season.

The Post has sought comment from American Eagle, Sydney Sweeney and her representatives.



Source link

Related Posts