Shares of American Eagle Outfitters surged by 23% on Monday, August 4, following praise from US President Donald Trump for the company's new denim campaign featuring actress Sydney Sweeney.
The Ad With Great Jeans
The ad features the Euphoria actress in American Eagle jeans and a denim jacket, delivering a pun-laden line, "Genes are passed down from parents to offspring, often determining traits like hair colour, personality and even eye colour. My jeans are blue."
The camera then zooms in on her blue eyes.
While the ad raked up its own share of storms, the brand doesn't seem to be complaining. Casting Sydney Sweeney in the controversial ad, after all, saw the brand's stocks go soaring.
American Eagle's Revenue Drop
In May, American Eagle withdrew its financial guidance citing "macro uncertainty" and forecasting a 5% drop in revenue.
- The company reported an $85 million operating loss in Q1, with gross margins falling sharply from 40.6% to 29.6%.
- Despite the weak financials, a single ad campaign featuring Sydney Sweeney sent the brand's stocks soaring.
- Following the campaign, shares jumped 28% in premarket trading, adding nearly $200 million to the company's market value in only one session, Vanity Fair reported.
- The campaign initially generated a 10% stock bump when it launched in July.
All That's Not So Great About The Ad
The ad soon went viral. People criticised it for evoking eugenics and white supremacist undertones, pointing to its focus on "genes" and the casting of a blonde-haired, blue-eyed actress.
Social media users accused American Eagle of invoking Nazi-era language around "great genes" and reinforcing Western beauty standards.
Enter Donald Trump
The ad made more waves after Trump endorsed the campaign in a Truth Social post on Monday.
"Sydney Sweeney, a registered Republican, has the 'HOTTEST' ad out there. It's for American Eagle, and the jeans are 'flying off the shelves.' Go get 'em, Sydney!"
Trump also used the moment to drag pop star Taylor Swift, whom he previously criticised for endorsing former Vice President Kamala Harris in the 2024 US presidential campaign. "Woke singer Taylor Swift" is 'NO LONGER HOT'," Trump wrote.
This endorsement quickly fuelled a surge of interest from his supporters and retail traders, sending American Eagle shares sharply upward.
Trump "Loves" Sydney Sweeney's Ad
Earlier on Sunday, Trump spoke about the campaign while he was boarding Air Force One from Allentown, Pennsylvania, US.
"She's a registered Republican? Oh, now I love her ad," he told reporters, "If Sydney Sweeney is a registered Republican, I think her ad is fantastic."
What American Eagle Said About The Ad
American Eagle also released a statement defending the campaign: "'Sydney Sweeney Has Great Jeans' is and always was about the jeans. Her jeans. Her story. We'll continue to celebrate how everyone wears their AE jeans with confidence, their way. Great jeans look good on everyone."
American Eagle Outfitters is a US-based clothing and accessories retailer founded in 1977 and headquartered in Pittsburgh. Known for its denim and casual wear, the brand targets teens and young adults with affordable, trend-driven fashion.
While the brand had almost faded into oblivion with dropping stocks, it seems like a Sydney Sweeney ad, a controversy, and an endorsement from the sitting President of the United States is all it needed to be great again.