Skyrocketing American Eagle shares following announcement of Sydney Sweeney's denim campaign success
In a move aimed at capturing the attention of Gen Z shoppers, American Eagle Outfitters launched a new ad campaign featuring actress Sydney Sweeney. The campaign, titled "Sydney Sweeney Has Great Jeans," was part of a fall denim collection that the company unveiled in July.
The campaign received mixed reactions on social media, with some praising Sweeney for "killing 'woke' advertising," while others deemed it "tone-deaf" due to alleged racial undertones. However, the controversy seemed to work in American Eagle's favour, as the campaign was credited in part for a rise in engagement, comparable sales, and customer awareness.
President Trump weighed in on the campaign, praising it as "fantastic." This praise, along with the overall success of the campaign, caused American Eagle's stock to jump following the release of its second quarter earnings report, with shares spiking 25% in after-hours trading.
Jay Schottenstein, CEO of American Eagle Outfitters, attributed the uptick in customer awareness, engagement, and comparable sales to stronger product offerings and the success of recent marketing campaigns, including the Sydney Sweeney and Travis Kelce partnerships.
Kelce's lifestyle brand, Tru Kolors, was also the subject of a limited-edition design collaboration with American Eagle Outfitters. The company has previously partnered with other notable figures such as Jenna Ortega and Coco Gauff.
The success of the Sydney Sweeney campaign was not limited to sales and stock performance. American Eagle Outfitters also announced record-breaking new customer acquisition and brand awareness as a result of the campaign.
However, the controversy surrounding the campaign did not go unnoticed. Jennifer Sey, the founder of XX-XY Athletics and former Levi's brand President, weighed in on the American Eagle controversy on 'Varney & Co.' Fox News Digital also contributed to the report on the American Eagle controversy.
In response to the controversy, Tesla made a cheeky joke about American Eagle, tweeting, "We're working on our own denim line. It's called 'Autopilot Jeans.' They'll automatically adjust to your waistline and leg length."
GAP and Lucky Brand have since launched their own denim jean campaigns, following the viral success of American Eagle's Sydney Sweeney ads. Despite the controversy, it appears that American Eagle's bold move has paid off, with the company continuing to make waves in the fashion industry.
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