American Eagle Stock Soars 25% After Successful Sydney Sweeney Ad Campaign Boosts Earnings

American Eagle Outfitters’ stock experienced a 25% surge following Wednesday’s earnings report, credited largely to the impact of the “Good Jeans” advertising campaign featuring actress Sydney Sweeney. CEO Jay Schottenstein highlighted the increase in brand awareness and profits, attributing the growth to stronger product offerings and successful marketing collaborations with Sweeney and NFL player Travis Kelce. This marketing initiative has reportedly led to increased customer awareness, engagement, and boosted comparable sales for the fall season.

The Sweeney ad campaign attracted widespread attention, featuring the actress in a video wearing American Eagle jeans and cleverly playing on the words “genes” and “jeans.” Despite the mixed reactions—some accusing the campaign of promoting a controversial beauty standard and others, including Donald Trump, praising it—the campaign resulted in some items selling out within days. Total impressions generated by the campaign reportedly reached 40 billion, as American Eagle plans to capitalize on this momentum.

Despite a less favorable financial outlook back in May, when the company faced challenges and withdrew its full-year guidance, American Eagle’s recent marketing efforts have spurred a positive turnaround. As of the report, American Eagle’s total revenue saw a slight decrease, down 1% to $1.28 billion.

Further insights into the campaign’s success were provided by American Eagle’s Chief Marketing Officer Craig Brommers, who noted double-digit increases in denim sales. The “Sydney” denim jacket and jeans proved highly popular, with plans to restock these items during the holiday period. The campaign was credited with significant new customer acquisition, and an Economist/YouGov poll suggested the negative perceptions of the ad were not as pervasive as media reports might suggest, with many respondents finding the ad “clever.”

American Eagle's recent strategies appear to reaffirm its embrace of youthful influencers to captivate the Gen Z demographic. Alongside the Sweeney campaign, American Eagle has collaborated with Travis Kelce, launching the limited-run AE x Tru Kolors collection. Despite Kelce’s relatively smaller social media following compared to Sweeney’s, the partnership is seen as a positive reinforcement of American Eagle’s brand strategy.

Looking forward, American Eagle Outfitters acknowledges the importance of maintaining its market momentum amidst potential challenges like American import tariffs and margin pressures. Having already announced measures to offset a projected $40 million reduction in 2025 gross margin, the company remains focused on leveraging successful marketing tactics to sustain its financial performance. As the company prepares to announce its upcoming quarterly earnings, investor focus will likely center on the continuation of its strategic marketing plans and the potential long-term impacts on its business trajectory.