American Eagle's Stock Surges After Trump Praises Sydney Sweeney Campaign

American Eagle shares surged 15% after President Donald Trump praised the retailer's marketing campaign with actress Sydney Sweeney, calling it the "hottest ad out there." Trump's endorsement reversed the stock's recent decline, which was driven by criticism of the campaign as sexist and out of touch. American Eagle's sales have been impacted by macroeconomic concerns and merchandising missteps, but the company's Q2 revenue is expected to fall 5% and operating income to be between $40-$45 million.

American Eagle Outfitters (AEO) shares surged 15% after President Donald Trump praised the retailer's marketing campaign with actress Sydney Sweeney, calling it the "hottest ad out there." The endorsement, made on July 3, 2025, came amid criticism of the campaign as sexist and out of touch, reversing the stock's recent decline [3].

The campaign, titled "Sydney Sweeney Has Great (American Eagle) Jeans," sparked controversy due to a pun on the words "genes" and "jeans." Critics accused the ad of promoting eugenics, implying that Sweeney's blonde-haired, blue-eyed genes are more desirable [2]. Despite the backlash, American Eagle stood by the campaign, stating that it was "always about the jeans" [2].

The stock's rally coincides with the recent surge in meme stocks, with other companies such as Krispy Kreme (DNUT), Kohl's (KSS), Opendoor Technologies (OPEN), and GoPro (GPRO) also trading higher on July 24 [3]. American Eagle's shares had been on a downward trend, falling 25.3% year-to-date compared to a 5.1% drop in the consumer discretionary index (S5COND) [3].

The campaign was aimed at reconnecting with Gen Z shoppers and was American Eagle's most expensive to date. Despite the controversy, the company's Q2 revenue is expected to fall 5% and operating income to be between $40-$45 million [3].

Trump's endorsement came after reports that Sweeney is a registered Republican in Florida, a fact that Trump found appealing. He compared Sweeney unfavorably to "Woke singer Taylor Swift," whom he previously criticized for endorsing his election opponent Vice President Kamala Harris [2].

The controversy over the ad has drawn support from several high-profile Republicans, including Vice President JD Vance and White House communications director Steven Cheung, who have criticized the backlash as "cancel culture run amok" [2].

American Eagle's shares hit more than a two-month high, last up 16.8% at $12.54 following Trump's praise [3]. The company's stock performance is a reminder of the power of celebrity endorsements and the influence of social media in shaping public perception and market sentiment.

References:
[1] https://variety.com/2025/tv/news/donald-trump-sydney-sweeney-registered-republican-american-eagle-1236477695/
[2] https://www.forbes.com/sites/conormurray/2025/08/04/trump-praises-sydney-sweeney-amid-american-eagle-ad-controversy-go-get-em-sydney/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TW1DH:0-american-eagle-surges-after-trump-praises-sydney-sweeney-s-ad/
[4] https://abcnews.go.com/GMA/Culture/trump-praises-sydney-sweeney-amid-american-eagle-jeans/story?id=124347376