American Eagle Outfitters has found itself at the center of a retail storm this week, as its shares soared on the back of a controversial yet undeniably effective advertising campaign featuring actor Sydney Sweeney. The company’s bold marketing moves, including partnerships with NFL star Travis Kelce and other celebrities, have sparked debate, drawn in hundreds of thousands of new customers, and sent its stock price on a dramatic upward trajectory.
On September 4, 2025, American Eagle’s shares jumped as much as 33% during the day’s trading, with premarket activity showing a nearly 24% surge, according to Reuters and The Associated Press. The cause? A flurry of interest and, yes, controversy, surrounding the company’s “Sydney Sweeney Has Great Jeans” campaign. The campaign, which launched over the summer, features the 27-year-old star of HBO’s “Euphoria” and “White Lotus” and has generated both buzz and backlash for its wordplay on “genes” and “jeans.” Some critics on social media accused the ads of reinforcing Western beauty standards and racial undertones, but American Eagle’s leadership has stood by the campaign’s intent.
Chief Marketing Officer Craig Brommers addressed the controversy directly during a post-earnings call on September 3, 2025, saying, “Sydney will be part of our team as we get into the back half of the year, and we’ll be introducing new elements of the campaign as we continue forward.” The company maintains that the campaign was always about its denim collection, not about race. CEO Jay Schottenstein echoed this sentiment, noting that the campaign “drew new customers during its most recent quarter” and resulted in “record-breaking new customer acquisition and brand awareness cutting across age, demographics and genders.”
The numbers tell a compelling story. Since launching the campaigns with Sweeney and Travis Kelce, American Eagle’s customer count has increased by more than 700,000. The ads themselves have generated a staggering 40 billion impressions, according to company data cited by Reuters. Traffic to stores and online platforms built up throughout the second quarter and continued into August, underscoring the campaign’s reach and impact.
But Sydney Sweeney isn’t the only celebrity helping American Eagle make headlines. The retailer has also teamed up with NFL star Travis Kelce, leveraging his popularity with young shoppers through a collaboration with his clothing brand, Tru Kolors. Partnerships with tennis champion Coco Gauff and actor Jenna Ortega have further cemented American Eagle’s status as a brand that understands—and courts—the Gen Z consumer.
It’s a timely strategy. U.S. retailers have been grappling with weak discretionary spending on clothing and accessories as economic uncertainty continues to weigh on shoppers. Yet, as Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors, put it, “A 25 percent leap (in extended trading on Wednesday) also bakes in a lot of faith that the celebrity-fueled demand burst holds through the holiday seasons, which makes the move partly victory lap and partly future perfect tense.”
American Eagle’s executives and analysts alike are optimistic about the months ahead. The company now expects comparable-store sales to rise by low single-digit percentages in the third and fourth quarters of 2025. For the full year, the retailer is forecasting flat annual comparable sales—an improvement over earlier analyst estimates of a 1.1% decline. This is a notable turnaround, considering the company withdrew its annual outlook earlier in the year due to global economic volatility.
“Q2 results eased concerns around execution and proved marketing momentum is translating into sales, driving a sharp stock re-rating,” said Lale Akoner, global market analyst at eToro, to Reuters. Barclays analyst Adrienne Yih added in a note, “(The) collaborations were, and are, genius in successfully driving traffic, conversion and sales. These collaborations are only getting started ... with the NFL season on the horizon and more to come from both collaborations in a meaningful way during the holiday season.”
Of course, not everyone is convinced that controversy is good for business. The campaign’s backlash, particularly around its use of the word “genes” and the casting of a blonde-haired, blue-eyed actress, sparked a wider debate about race, beauty standards, and the so-called “woke” politics of American advertising. In response, retail rival The Gap launched its own campaign featuring the girl group KATSEYE, which was widely praised for its inclusivity. But as Neil Saunders, managing director of GlobalData, observed, the uproar may have been “something of a ‘tempest in a teacup.’ While it generated strong reactions, it ultimately had no serious detrimental impact on sales.”
Indeed, American Eagle’s performance stands out in a challenging retail environment. The company’s forward price-to-earnings multiple—a common benchmark for valuing stocks—now sits at 13.05, higher than Abercrombie & Fitch’s 8.94 and Urban Outfitters’ 12.13. Short interest in American Eagle remains notable, at 16.6% of public float, with shares trading at $18 on September 4, 2025, according to data from LSEG.
For the second quarter, American Eagle reported revenue of $1.28 billion, a slight 1% dip from the previous year, but the company insists the momentum from its marketing campaigns is translating into real gains. Shares of American Eagle Outfitters Inc. are now up 6% for the year, reversing what had been an 18% decline before the recent surge.
As the Dow Jones Industrial Average and other major indexes improved on September 4, American Eagle’s performance was singled out as a bright spot in a volatile market. The company’s willingness to embrace controversy, bet big on celebrity partnerships, and adapt quickly to changing consumer tastes has certainly put it back in the headlines—and, for now, back in the good graces of Wall Street.
Looking ahead, American Eagle plans to keep its foot on the gas. Chief Marketing Officer Craig Brommers confirmed that Sydney Sweeney will remain central to the campaign through the rest of the year, with new elements set to debut. With the NFL season approaching and more collaborations in the pipeline, the retailer is betting that its high-profile marketing blitz will continue to pay dividends—both in customer numbers and in investor confidence.
For a brand that just a few months ago was struggling to regain relevance among younger shoppers, American Eagle’s recent moves show that sometimes, making a little noise is exactly what’s needed to get back on the radar.
