AEO Surges 7.8% Amid Controversial Campaign, Ranks 494th in Trading Volume

American (AEO) surged 7.81% on August 13, 2025, with a trading volume of $0.23 billion, marking a 33.51% increase from the previous day. The stock ranked 494th in volume among U.S. equities. The move coincided with a contentious marketing campaign by its affiliate brand, American Eagle Outfitters, which has sparked polarized consumer reactions and raised questions about brand positioning.

At the center of the debate is American Eagle’s “Sydney Sweeney Has Great Jeans” campaign, which reworks the phrase “genes” to highlight the actress’s blue eyes and blonde hair. Critics argue the messaging inadvertently reinforces white-centric beauty standards, alienating segments of its young, left-leaning customer base. Data from Placer.ai shows a decline in store traffic year-over-year, suggesting the backlash is translating into tangible foot traffic losses despite the campaign’s visibility.

Political figures have further amplified the controversy. President Trump praised the campaign after learning actress Sydney Sweeney is a registered Republican, calling it “fantastic.” This endorsement contrasts with left-leaning criticisms framing the ads as “tone-deaf” and racially insensitive. Meanwhile, Vice President JD Vance mocked opponents of the campaign for equating appreciation of Sweeney’s appearance with “Nazi” rhetoric, underscoring the campaign’s role in igniting ideological divides.

Despite American Eagle’s defense that the campaign celebrates universal confidence in its jeans, analysts note the disconnect between brand messaging and consumer perception. The company’s reliance on denim sales to younger demographics makes it particularly vulnerable to such controversies. The campaign’s abrupt shift in public sentiment highlights the risks of aligning with polarizing cultural narratives in an era of heightened social media scrutiny.

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