Sydney Sweeney ad boosts American Eagle’s sales, stock surges

An American Eagle advertisement featuring actress Sydney Sweeney on billboards in New York. Photo / Michael Nagle, Bloomberg via The Washington Post

American Eagle Outfitters Inc. wanted Sydney Sweeney to be a brand reset. It worked.

Yesterday NZT aftermarket, the apparel company reported higher-than-expected quarterly sales and cited the success of its controversial marketing campaign featuring the actress, which ignited a social media firestorm.

“In just six weeks, the campaign has generated unprecedented new customer acquisition,” chief marketing officer Craig Brommers said in a call with analysts.

He said the company gained new shoppers in “every single county in the United States” and saw sellouts of Sweeney’s signature jean.

“This momentum is national and it is pervasive,” he said.

American Eagle shares surged as much as 28% today in premarket trading. If that gain holds, the stock would be set for its biggest rise since 2000. The shares had declined about 18% this year.

For the quarter ended August 2, American Eagle reported same-store sales down 1%, surpassing the average analyst estimate compiled by Bloomberg. Revenue also outpaced expectations.

The autumn season is “off to a positive start,” chief executive Jay Schottenstein said in a statement.

“Fuelled 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,” he said.

The company said it plans to continue its work with Sweeney and would release a second drop of its collection with Kelce.

American Eagle has faced steep competition from rivals including Gap Inc., Levi Strauss & Co. and Abercrombie & Fitch Co., with sales falling for four quarters straight on an annual basis.

Launched in July, its “Sydney Sweeney has great jeans” campaign faced swift backlash, with some accusing the company of referencing eugenics.

The attention captured the interest of US President Donald Trump, who called it the “HOTTEST ad out there” in a post on Truth Social.

Shortly after news of Kelce’s engagement to pop star and billionaire Taylor Swift broke, American Eagle announced a collaboration with his brand Tru Kolors.

Despite the success American Eagle attributed to the Sweeney ad, weekly year-over-year sales growth has slowed since around the July 23 launch, similar to trends from competitors, according to credit and debit card transaction data compiled by Bloomberg Second Measure.

Overall, sales “remain weak” at American Eagle but the business is regaining traction, said Neil Saunders, managing director of GlobalData.

“The controversy around the Sydney Sweeney denim campaign proved to be something of a tempest in a teacup,” he said.

“While it generated strong reactions, it ultimately had no serious detrimental impact on sales. Indeed, guidance for the second half points to improved momentum.”

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