American Eagle CEO Jay Schottenstein and actor Sydney Sweeney attend the opening bell ceremony at the New York Stock Exchange on Feb. 9.Brendan McDermid/Reuters
American Eagle Outfitters AEO-N shares jumped on Wednesday after the denim retailer unveiled a second campaign with Euphoria star Sydney Sweeney, a year after a viral and controversial ad featuring the actress fueled a stock rally.
American Eagle’s shares rose nearly 6 per cent to US$18.80 in early trading after the denim maker launched a new ad with Sweeney for its summer season denim shorts collection, which includes low-rise shorts and super low-rise micro “skorts.”
The company’s first ad with the actress, called “Great Jeans,” faced social-media criticism over perceived racial undertones, but has helped its shares rise 77 per cent since it was launched in July, 2025. Revenue also jumped 37 per cent in the six months through January, compared with a 24-per-cent rise in the same period a year earlier.
“If Sydney Sweeney is a registered Republican, I think her ad is fantastic,” U.S. President Donald Trump told reporters last year.
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Credit and debit card data suggests last summer’s Sweeney campaign was more than just a short-term boost for American Eagle, with spending rising more among Republican consumers, according to Michael Gunther, SVP, research & market intelligence at Consumer Edge.
Apparel and accessories companies such as American Eagle and Tabby handbag maker Tapestry have leaned on celebrity collaborations to appeal to affluent Gen Z customers willing to spend on pricier nice-to-have items, even as lower- and middle-income consumers struggle to afford essentials.
The new campaign, called “Syd for Short: American Eagle Jean Shorts,” is American Eagle’s latest effort to boost demand as it navigates lingering pressure from tariff-linked costs. The company sources most of its products from vendors in Asia, according to its latest annual filing, and as of last close, its shares were down about 28 per cent this year.
However, American Eagle forecast annual sales above estimates and reported a blowout holiday quarter in March as marketing and campaigns with celebrities such as Sweeney drove demand. The “Great Jeans” campaign was rolled out just a couple of months after the company pulled its annual targets last year citing pressure from tariff-related costs.