American Eagle Store Visits Plummet 9% After Sydney Sweeney Ad Backlash

American Eagle's store visits fell 9% YoY in the week starting August 3, following the launch of its "Sydney Sweeney Has Great Jeans" campaign on July 23. The campaign drew criticism for alleged eugenic undertones and oversexualization, but supporters argue against critics. Competitors like Abercrombie & Fitch and H&M also saw lower traffic, but not as steep as American Eagle's fall.

American Eagle Outfitters Inc. (AEO) experienced a significant drop in store visits following the launch of its "Sydney Sweeney Has Great Jeans" campaign on July 23, 2025. According to retail analytics firm pass_by, in-store visits to American Eagle fell 8.96% year-over-year (YoY) during the week starting August 3, marking the biggest two-week drop for the company in more than a year [1]. This decline coincides with the cultural conversation surrounding the campaign, which sparked controversy due to alleged eugenic undertones and oversexualization.

The campaign, which features actress Sydney Sweeney with the phrase "Sydney Sweeney Has Great Jeans," drew widespread criticism and support. While some conservatives and Trump supporters praised the ad, progressives and left-leaning activists criticized it for promoting Nazi-era rhetoric and white beauty superiority. Despite the backlash, American Eagle's stock price surged more than 20% following Trump's endorsement on Truth Social [1].

American Eagle's stock has been volatile this year, with shares down nearly 25% so far. The company's supply chain diversification efforts, aiming to reduce its reliance on China, may also impact its financial performance. However, the campaign's impact on sales and market share remains uncertain, with data firm Consumer Edge reporting no measurable partisan gap in purchase behavior [1].

Competitors like Abercrombie & Fitch and H&M also saw lower traffic, but not as steep as American Eagle's fall. This suggests that the decline in American Eagle's store visits may be more related to the cultural controversy surrounding the campaign than broader economic trends.

References:

[1] 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
[2] https://www.forbes.com/sites/pamdanziger/2025/08/06/american-eagle-sydney-sweeney-controversy-aeo-is-laughing-all-the-way-to-the-bank/