Denim Revival: The Hottest Trend in Apparel Retail

Denim is experiencing a surge in popularity, with retailers like American Eagle, Gap, and Kohl's highlighting the strength of jeans in recent results. Levi Strauss shares have risen over 30% this year. The trend is attributed to a combination of factors, including a return to comfort and nostalgia. Retailers are amplifying denim's appeal with marketing campaigns, such as American Eagle's Sydney Sweeney campaign and Gap's Katseye dance campaign.

Denim, once a staple of American fashion, is experiencing a resurgence in popularity, with retailers like American Eagle Outfitters, Gap, and Kohl's highlighting the strength of jeans in recent results. This trend is driven by a combination of factors, including a return to comfort and nostalgia, as well as innovative marketing campaigns.

American Eagle Outfitters (AEO) has been at the forefront of this trend, with its stock surging 24.01% in pre-market trading on September 4, 2025, following strong Q2 earnings and a successful advertising campaign featuring actress Sydney Sweeney. The "Good Jeans" campaign targeted Generation Z (Gen Z) and generated record-breaking new customer sign-ups and engagement, positioning AEO as a cultural marker in the US denim market [1].

Gap, another major player in the denim market, has also seen a boost in sales and customer engagement. The retailer's "Katseye" dance campaign, which features a viral TikTok dance, has helped to revitalize interest in denim among younger consumers. This campaign, along with others, has contributed to the overall resurgence of denim in the fashion industry.

Levi Strauss (LEVI), the iconic jeans brand, has also seen significant growth in its stock price. Shares have risen over 30% this year, with the stock hitting a new 52-week high on September 2. The company's strong technical momentum and positive analyst sentiment have contributed to this growth [3].

The trend is expected to continue, with retailers and investors alike benefiting from the renewed popularity of denim. American Eagle Outfitters' CEO has credited the "Good Jeans" campaign for the company's performance turnaround, and the campaign's success is expected to sustain fall sales growth [1]. Similarly, Levi Strauss' strong technical momentum and positive analyst sentiment suggest that the company is well-positioned for continued growth.

Retailers are amplifying denim's appeal through innovative marketing campaigns and a focus on comfort and nostalgia. The resurgence of denim is a testament to the enduring appeal of classic American style and the power of effective marketing in driving sales and customer engagement.

References:
[1] https://www.ainvest.com/news/american-eagle-outfitters-soars-24-01-good-jeans-campaign-success-2509/
[3] https://finance.yahoo.com/news/strong-buy-stock-durable-hitting-143003681.html