American Eagle stock surges as Sydney Sweeney campaign boosts visibility despite controversy
TOI World Desk | Sep 05, 2025, 00:06 IST
American Eagle’s stock jumped 31% after its ad campaigns, particularly a controversial denim campaign featuring Sydney Sweeney, attracted new customers in the second quarter. The ads, criticized for using the word “genes” instead of “jeans” and reinforcing narrow beauty standards, nevertheless drove record customer acquisition, according to CEO Jay Schottenstein. Revenue dipped 1% to $1.28 billion, but the company expects modest growth later this year. American Eagle also credited a Travis Kelce partnership for boosting visibility, while rival Gap’s “Better in Denim” campaign with KATSEYE went viral. Analysts said the Sweeney debate ultimately helped American Eagle by renewing consumer attention.
American Eagle's stock price surged 31% on Thursday after the company reported that its latest ad campaigns successfully attracted new customers in the second quarter.
The Sydney Sweeney denim campaign launched by the company over the summer sparked online debates. The campaign became subject to arguments after using the word “genes” instead of “jeans”, pointing to Sydney Sweeney's blonde hair and blue eyes. Critics argued the advertisement reinforced Western beauty standards and carried racial undertones.
Despite the criticism, the campaign drew several new customers across all age groups. “We saw a record-breaking increase in new customer acquisition and brand awareness across age groups, demographics and gender," said CEO Jay Schottenstein.
American Eagle reported 1% decline in revenue in the second quarter, totaling $1.28 billion. However, the company now anticipates stronger sales this year and expects modest growth in the third and fourth quarters.
American Eagle also credited another campaign featuring Travis Kelce, the NFL player who recently partnered with the company to launch a limited edition clothing line, with helping the brand gain visibility.
The brand defended the Sweeney campaign by emphasizing that the ads were always meant to be about its clothing and not about race.
Meanwhile, GAP launched its own “better in denim” campaign with the girl group KATSEYE, which became a viral hit with 400 million views in just three days.
Industry analysts say the Sweeney controversy was helpful rather than harmful, as it boosted visibility and reminded consumers of the brand.
Chief Marketing Officer Craig Brommers confirmed that Sweeney will continue to be featured in the retailer’s campaigns heading into the second half of the year, with new creative elements planned.
The Sydney Sweeney denim campaign launched by the company over the summer sparked online debates. The campaign became subject to arguments after using the word “genes” instead of “jeans”, pointing to Sydney Sweeney's blonde hair and blue eyes. Critics argued the advertisement reinforced Western beauty standards and carried racial undertones.
Despite the criticism, the campaign drew several new customers across all age groups. “We saw a record-breaking increase in new customer acquisition and brand awareness across age groups, demographics and gender," said CEO Jay Schottenstein.
American Eagle reported 1% decline in revenue in the second quarter, totaling $1.28 billion. However, the company now anticipates stronger sales this year and expects modest growth in the third and fourth quarters.
American Eagle also credited another campaign featuring Travis Kelce, the NFL player who recently partnered with the company to launch a limited edition clothing line, with helping the brand gain visibility.
The brand defended the Sweeney campaign by emphasizing that the ads were always meant to be about its clothing and not about race.
Meanwhile, GAP launched its own “better in denim” campaign with the girl group KATSEYE, which became a viral hit with 400 million views in just three days.
Industry analysts say the Sweeney controversy was helpful rather than harmful, as it boosted visibility and reminded consumers of the brand.
Chief Marketing Officer Craig Brommers confirmed that Sweeney will continue to be featured in the retailer’s campaigns heading into the second half of the year, with new creative elements planned.