American Eagle Outfitters witnessed an extraordinary leap in its stock as buzz around its latest advertising push starring “Euphoria” actor Sydney Sweeney triggered a viral surge of enthusiasm among shoppers and investors alike.
On Thursday, shares of the U.S. teen apparel giant vaulted by approximately 30% in early trading following the launch of the provocative “Sydney Sweeney Has Great Jeans” campaign. In some reports, gains ranged up to 31% at the opening bell. Reuters, citing premarket trading, put the jump at 33%.
Debuting in July, the campaign plays on the pun between “jeans” and “genes,” with Sweeney famously correcting a billboard from saying “Great Genes” to “Great Jeans.” The campaign instantly set off social media buzz and intense debate, with critics decrying subtle racial undertones while others defended it as bold marketing that resonated with Gen Z.
Despite the controversy, American Eagle has leaned into the momentum. Chief Marketing Officer Craig Brommers stated, “Sydney Sweeney Has Great Jeans is not going anywhere,” and confirmed the campaign will extend into the second half of the year with new creative elements. Sourced by Reuters
The investor response was swift. Alongside the stock spike, the company added an estimated $725 million in market value, pushing shares to their highest point since December. Customer acquisition surged by over 700,000, with the campaigns (including one featuring NFL star Travis Kelce) generating a staggering 40 billion impressions.
Even as Q2 revenue ticked down by 1% to $1.28 billion, the company exceeded expectations with earnings of 45 cents per share, marking a 15% year-over-year increase.
CEO Jay Schottenstein emphasized that the campaign reaffirmed AE’s identity as “the American jeans brand,” while signaling confidence in continued strength going into the holiday season. Looking ahead, the retailer forecasts low single-digit growth in comparable-store sales for Q3 and Q4, after abandoning earlier full-year guidance due to global volatility.
Barclays analyst Adrienne Yih called the marketing collaborations “genius,” suggesting they will help AE outperform current guidance through the remainder of the year. Similarly, GlobalData’s Neil Saunders described the frenzy as a “tempest in a teacup” with no lasting negative impact on sales and pointed to the partnerships as key in restoring brand visibility.
Beyond the bottom line, the campaign has thrust American Eagle into the cultural spotlight. Critics raised alarms about perceived eugenics messaging, while conservative commentators celebrated the ad as a foil to “woke” marketing ― even earning praise from former President Trump as “Fantastic”. This polarized response contributed heavily to social discourse, amplifying media coverage and awareness.
American Eagle’s bold pivot toward celebrity-driven campaigns is paying dividends. With the Sydney Sweeney campaign achieving unprecedented customer engagement and reversing investor sentiment, the retailer appears poised for a commercially vibrant autumn. Whether the heat generated by controversy can be sustained remains to be seen—but right now, the company is riding high, reaffirmed by a market and audience that clearly believes, “She’s a winner.”