American Eagle Outfitters has seen a dramatic surge in its stock price, climbing more than 25% after its recent ad campaign featuring Emmy-nominated actress Sydney Sweeney ignited consumer excitement and boosted sales. The campaign, which playfully dubbed Sweeney’s promotion as the “Good Jeans” moment, quickly went viral across social media, resonating with younger shoppers and giving the retailer a timely edge heading into the busy fall season.
According to American Eagle CEO Jay Schottenstein, the company is off to a great start in the fall, and he attributes this to the introduction of new products and high-profile marketing campaigns starring Travis Kelce and Sydney Sweeney, which have increased comparable sales, customer engagement, and brand awareness.
A Breakout Moment for American Eagle
The campaign highlights Sweeney wearing American Eagle’s signature denim line, paired with a confident and playful message that instantly captured attention. TikTok and Instagram clips from the ads generated millions of views within days, propelling the brand into trending discussions and drawing a wave of organic engagement.
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Industry analysts say this kind of cultural buzz is rare in retail. “Sydney Sweeney’s campaign has achieved what many brands strive for authenticity, relatability, and virality all in one package,” said Neil Saunders, managing director at Global-Data Retail. “It’s translating directly into foot traffic and online conversions.” The company also revealed during its Wednesday earnings call that Sweeney’s jean collaborations sold out in less than a week, with some pieces disappearing from shelves within just a day.
Sales Momentum Heading Into Fall
According to early sales data, American Eagle has seen notable growth in denim purchases since the campaign launched. The brand’s back-to-school and fall shopping season, typically a key period for revenue, appears to be benefiting from the surge in visibility. Retail trackers note that searches for American Eagle jeans spiked dramatically on Google Trends after the ad’s debut.
Compared to its previous earnings report in May, when CEO Jay Schottenstein acknowledged it was “a challenging time for our business” and retracted its full-year, this represents a significant turnaround. At that time, the company also wrote off $75 million worth of merchandise in the first quarter, acknowledging that the inventory had lost too much value to keep on the books. That guidance has since been reinstated this quarter, signaling renewed confidence in the brand’s recovery.
American Eagle executives said they were confident the campaign would make a lasting impression. According to Jennifer Foyle, President and Executive Creative Director of AE and Aerie, “Sydney embodies the spirit of our customer base authentic, bold, and full of energy.” “We think this is just the beginning, and the response from people have been incredible.”
Stock Market Reaction
Wall Street responded quickly. Shares of American Eagle Outfitters (NYSE: AEO) surged 25% in a matter of days, making it one of the best-performing retail stocks of the season. Investors are betting that the viral campaign will translate into sustained revenue growth, especially as denim remains a fashion staple.
The company also noted it expects a $20 million hit from tariffs in the third quarter and between $40 million and $50 million in the fourth. Even so, second-quarter results topped expectations: comparable sales slipped just 1% versus an anticipated 2.4% drop, while adjusted earnings of 45 cents per share easily beat analyst estimates of 21 cents.
Market watchers point out that the success of celebrity-driven campaigns can be fleeting, but American Eagle’s strategy of tapping into youth culture with authentic voices has set it apart from competitors like Abercrombie & Fitch and Hollister.