AEO's Unlikely Rise: Bullish Case for American Eagle Outfitters

American Eagle Outfitters, Inc. (AEO) is witnessing a surge in brand attention following its new jeans campaign featuring Sydney Sweeney. Despite criticism, the brand has gained unexpected momentum, with Instagram follower growth jumping from 300 to 115,000 in two weeks and TikTok hashtag impressions surging from 1 million to 20 million per day. Website traffic has also increased by 1.5 million weekly visits compared to the same period last year, with strong purchase intent. This could catalyze the company's next phase of growth.

Title: American Eagle Outfitters: Sydney Sweeney Campaign Drives Mixed Results

American Eagle Outfitters, Inc. (AEO) has recently gained significant brand attention following its new jeans campaign featuring actress Sydney Sweeney. The campaign, which launched in late July, has sparked a surge in social media engagement, website traffic, and stock price fluctuations. However, the campaign has also faced criticism and may be negatively impacting store traffic.

The campaign, which features Sweeney with the tagline "Sydney Sweeney Has Great Jeans," has garnered significant media attention, including support from President Donald Trump. This support has led to a substantial increase in Instagram followers, with the brand gaining over 142,700 new followers in just a few weeks [3]. Additionally, website traffic has increased by 1.5 million weekly visits compared to the same period last year, indicating a strong purchase intent [3].

However, the campaign has not translated into a rise in store traffic. Retail analytics company Pass_by reported a significant drop in in-store visits during the week of Aug. 3 to Aug. 9, with a year-over-year decrease of 8.96% [3]. This drop follows a 3.90% decrease in the previous week, marking a reversal from the brand's steady year-over-year growth earlier this summer. The decline coincides directly with the cultural conversation surrounding the campaign [3].

American Eagle has stated that the campaign "is and always was about the jeans" and that it will continue to celebrate how everyone wears their AE jeans with confidence [1]. However, the company has not yet responded to the reported drop in store traffic.

The campaign has sparked a debate over whether it highlights white privilege and discriminates against minorities and people with different bodies and skin than idealized, white, young people [1]. Some consumers have criticized the campaign for its play on the word "genes" and its association with eugenics.

Despite the criticism and the potential impact on store traffic, American Eagle's stock has seen a brief surge following Trump's support of the campaign. However, the stock is currently down nearly 25% so far this year, reflecting broader concerns about uncertain consumers and the potential impact of Trump's tariffs on retailers [2].

In conclusion, while the Sydney Sweeney campaign has driven significant brand attention and social media engagement, it has also faced criticism and may be negatively impacting store traffic. American Eagle will need to carefully consider how to navigate this situation and maintain its brand position with young consumers.

References:
1. [1] https://www.forbes.com/sites/richardkestenbaum/2025/08/13/american-eagle-needs-to-end-its-sydney-sweeney-campaign/
2. [2] https://www.morningstar.com/news/marketwatch/2025081277/sydney-sweeney-and-trump-may-have-been-good-for-american-eagles-stock-but-maybe-not-demand-data-shows
3. [3] https://chainstoreage.com/sydney-sweeneys-american-eagle-jeans-campaign-not-great-store-traffic