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American Eagle Outfitters Surges 23.6% Following Donald Trump's Praise
ByAinvest
Tuesday, Aug 5, 2025 12:44 pm ET1min read
American Eagle Outfitters (AEO) surged 23.65% to $13.28 after President Donald Trump praised the company's new endorser, actress Sydney Sweeney, for being a registered Republican. Trump's comment followed mixed reactions to AEO's new campaign called "Sydney Sweeney Has Great Jeans," which was accused of having racial undertones. The campaign featured Sweeney wearing an all-denim outfit and referencing genetic traits.
American Eagle Outfitters (AEO) stock surged 23.65% to $13.28 on Monday, August 4, following a positive endorsement from President Donald Trump. The endorsement came after mixed reactions to the company's new campaign, "Sydney Sweeney Has Great Jeans," which featured actress Sydney Sweeney in an all-denim outfit and referenced genetic traits. Trump praised Sweeney for being a registered Republican and called the ad "the HOTTEST" out there [1].The ad sparked controversy due to its wordplay on the term "genes," which some critics interpreted as promoting eugenics and white supremacist undertones [2]. Despite the backlash, the ad led to a significant increase in AEO's stock price. The company's stock closed more than 23% higher on Monday [1].
AEO's financial performance has been underwhelming in 2025. The company reported an $85 million operating loss in the first quarter and missed expectations [2]. The company's stock has been down 21% year-to-date, despite the recent surge [3].
Trump's endorsement is likely to have had a significant impact on AEO's stock price. The president's support for Sweeney's ad, which he described as "fantastic," may have attracted retail traders and investors, leading to a surge in AEO's stock price [1].
References:
[1] https://www.nbcnews.com/business/markets/trump-sydney-sweeney-american-eagle-stock-rcna222943
[2] https://www.ndtv.com/lifestyle/donald-trump-makes-american-eagle-great-again-as-viral-praise-for-sydney-sweeney-sends-stocks-soaring-9021253
[3] https://www.foxbusiness.com/lifestyle/tesla-mocks-american-eagle-cheeky-jeans-joke-after-sydney-sweeney-ad-controversy-erupts
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