American Eagle stock surges 25% after Sydney Sweeney’s ‘good jeans’ ad campaign

American Eagle Outfitters reported a major boost in its stock on Wednesday, with shares climbing 25% following an upbeat earnings report. The retailer credited its controversial but attention-grabbing ad campaign featuring actress Sydney Sweeney as a key driver of brand visibility and consumer engagement.

CEO Jay Schottenstein highlighted the role of celebrity partnerships in reinvigorating the business. “The fall season is off to a positive start,” he said in the earnings release. “Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement, and comparable sales.”

The Campaign That Sparked Debate

The “Good Jeans” campaign featuring Sweeney, who appeared in a video linking genetics to denim with the tagline “Genes are passed down from parents to offspring… My body’s composition is determined by my genes,” became one of the most talked-about fashion ads of the summer. Critics accused the brand of invoking eugenics-related language, while others—including former President Donald Trump—praised it as “fantastic.”

Despite the controversy, the campaign proved an undeniable commercial success. Within a week of launch, Sweeney’s jean collaborations sold out, with some items disappearing from shelves in just 24 hours. “Sydney is a winner,” said Chief Marketing Officer Craig Brommers on the earnings call. “In just six weeks, the campaign has generated unprecedented new customer acquisition.”

Combined with NFL star Travis Kelce’s campaign, American Eagle said the two partnerships generated an estimated 40 billion impressions across media platforms. Executive Creative Director Jennifer Foyle described this as “staggering” and confirmed plans to expand on the momentum later this year.

Balancing Hype with Financial Reality

While the campaigns have boosted visibility, American Eagle continues to face structural challenges. Revenue fell 1% to $1.28 billion in the second quarter, and the company warned of tariff-related headwinds—estimating costs of $20 million in the third quarter and up to $50 million in the fourth. Price hikes are expected to help offset those pressures.

Earlier this year, the retailer had been far less optimistic. In May, Schottenstein called it “a challenging period for our business” and even pulled full-year guidance. The company also announced a $75 million write-off in the first quarter, acknowledging that a significant amount of its merchandise had lost value.

Still, this quarter’s tone has shifted sharply. With Sweeney’s campaign capturing cultural attention—even if polarizing—the retailer appears determined to lean into the spotlight.

What Comes Next

The ad’s cultural reception has divided opinion. Shalini Shankar, an anthropology professor at Northwestern University who studies advertising and youth culture, told CNN that American Eagle seemed to be “aligning themselves with a white nationalist, MAGA-friendly identity” through its language and imagery. Online debate surged after right-leaning influencers amplified criticism of perceived “progressive outrage” around the campaign.

American Eagle, however, shows no signs of retreating. Brommers confirmed that the “Sydney Sweeney has great jeans” theme will continue, with new creative twists arriving later this year.

For now, the brand is celebrating the payoff of a high-risk, high-reward marketing strategy. Whether American Eagle can sustain sales beyond the initial hype remains the bigger question—but the stock market’s response suggests investors are buying into the momentum.